SB 79
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Enrolled
Senate Bill 79 (Senator Kramer)
Finance Economic Matters
Electricity – Change of Address – Maintenance of Subscriptions and Contracts
This bill authorizes community solar energy subscribers and residential electric choice
customers to maintain their subscriptions or contracts at a new service address, if the new
address is within the same service territory as the old address. The bill applies to electric
companies, electric cooperatives, and municipal utilities that participate in the affected
programs. An electric company or a subscriber organization may not terminate a
customer’s contract or subscription due to a change of address that meets the requirements
of the bill. Electric companies must make any necessary changes to accommodate the
change of address. The bill takes effect July 1, 2022.
Fiscal Summary
State Effect: Special fund expenditures for the Public Service Commission (PSC) increase
by $150,000 in FY 2023; however, expenditures are reallocated to FY 2022 to the extent
that PSC begins implementation prior to the bill’s effective date, as discussed below. In
either case, special fund revenues increase correspondingly from assessments imposed on
public service companies. The effect on electricity prices is discussed separately below.
(in dollars) FY 2023 FY 2024 FY 2025 FY 2026 FY 2027
SF Revenue $150,000 $0 $0 $0 $0
SF Expenditure $150,000 $0 $0 $0 $0
Net Effect $0 $0 $0 $0 $0
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: Minimal. Municipal utilities do not participate in the affected programs.
Small Business Effect: Potential meaningful.
 Analysis
Current Law: The Electric Customer Choice and Competition Act of 1999 facilitated the
restructuring of the electric utility industry in Maryland. The resulting system of customer
choice allows the customer to purchase electricity from a competitive supplier or to
continue receiving electricity under standard offer service (SOS). Default SOS electric
service is provided by a customer’s electric company (e.g., Baltimore Gas and Electric
Company or Pepco). Competitive electric supply is provided by competitive electricity
suppliers. In either case, the electric company delivers the electricity and recovers the costs
for delivery through distribution rates. Gas supply and delivery are similarly restructured,
with gas suppliers and gas companies.
Chapters 346 and 347 of 2015 required PSC to establish a three-year Community Solar
Energy Generating System Pilot Program, subject to specified conditions. The program
was subsequently extended to seven years. Such a system, in addition to other
requirements, credits its generated electricity, or the value of its generated electricity, to
the bills of the subscribers to that system through virtual net energy metering. Subscribers
must be in the same electric service territory as the system.
For both of the above programs, investor-owned electric companies must participate. Large
electric cooperatives must participate in customer choice but may choose to participate in
the community solar pilot program. Municipal utilities may choose to participate in either
program.
State Expenditures: PSC advises that it likely must promulgate regulations and establish
practices allowing customers to retain their subscriptions or supply contracts consistent
with the requirements of the bill. This process likely will require convening workgroup
meetings, submitting a petition for a rulemaking, participating in the rulemaking process,
and monitoring utility implementation. The COVID-19 pandemic and hiring freeze has
negatively impacted the agency’s resources, making it necessary to utilize consulting
assistance for these tasks.
Based on the bill’s delayed July 1, 2022 effective date, this estimate assumes that costs
related to implementation begin in fiscal 2023. Therefore, special fund expenditures for
PSC increase by $150,000 in fiscal 2023 for consultant services. However, such
expenditures are reallocated to fiscal 2022 to the extent that PSC begins implementation
prior to the bill’s effective date – as PSC advises it intends to do. In either case, special
fund revenues increase correspondingly from assessments imposed on public service
companies.
Small Business Effect: To the extent that a community solar energy generating system or
any of its subscribers or a competitive electricity supplier or any of its customers are small
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businesses, the bill may have a positive effect on these entities through maintenance of
existing business relationships, even as subscribers and customers relocate.
Additional Comments: Baltimore Gas and Electric Company estimates implementation
costs of $1.4 million to $2.0 million, Pepco estimates costs of $0.8 million to $1.3 million,
the Southern Maryland Electric Cooperative estimates costs of $0.7 million to $1.1 million,
and Potomac Edison estimates costs of $0.5 million. The Department of Legislative
Services cannot estimate the effects of these and other electric companies’ costs on overall
electric rates at this time; nevertheless, any approved electric company implementation
costs will ultimately be recovered through electric rates. Based on these costs, the overall
effect on rates is likely modest.
Additional Information
Prior Introductions: None.
Designated Cross File: HB 473 (Delegate Dumais) - Economic Matters.
Information Source(s): Public Service Commission; Office of People’s Counsel;
Maryland Municipal League; Department of Legislative Services
Fiscal Note History: First Reader - January 21, 2021
rh/lgc Third Reader - March 12, 2021
Revised - Amendment(s) - March 12, 2021
Enrolled - April 9, 2021
Analysis by: Stephen M. Ross Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 79/ Page 3


Statutes affected:
Text - First - Electricity – Change of Address – Maintenance of Subscriptions and Contracts: 7-306.2 Public Utilities, 7-312 Public Utilities
Text - Third - Electricity – Change of Address – Maintenance of Subscriptions and Contracts: 7-306.2 Public Utilities, 7-312 Public Utilities
Text - Enrolled - Electricity – Change of Address – Maintenance of Subscriptions and Contracts: 7-306.2 Public Utilities, 7-312 Public Utilities