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HB 1561

Electricity Generation and Storage - Investor-Owned Electric Companies and Front-of-the-Meter Storage (Affordable Energy Act)

2026 Regular Session Introduced by Pam Queen

HB 1561 permits Maryland investor-owned utilities to own and operate grid-scale battery storage, enabling faster deployment but potentially increasing consumer electricity costs through regulated rate recovery.

Hearing 3/10 at 1:00 p.m.
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Bill Summary · HB 1561

Legislative bill overview

HB 1561 modifies Maryland's regulatory framework to allow investor-owned electric utilities to own and operate "front-of-the-meter" battery storage systems—large-scale energy storage facilities connected directly to the electrical grid rather than serving individual customers. The bill aims to streamline deployment of storage infrastructure by enabling utilities to recover costs through regulated rates, similar to traditional power generation assets.

Why is this important

Energy storage is critical infrastructure for grid reliability and renewable energy integration, particularly as Maryland transitions away from fossil fuels. Currently, storage development relies primarily on independent operators or third-party developers, which can slow deployment. Allowing utilities to directly own storage could accelerate buildout but raises questions about cost-effectiveness, since utility-owned infrastructure typically passes expenses to ratepayers through regulated rate increases.

Potential points of contention

  • Ratepayer costs: Utility ownership may result in higher costs to consumers compared to competitive market alternatives, as utilities earn guaranteed returns on infrastructure investments
  • Market competition: Allowing utilities to own storage could discourage private investment and competition in the storage sector, potentially reducing innovation and efficiency gains
  • Regulatory oversight: The bill's success depends heavily on the Public Service Commission's ability to evaluate whether utility-owned storage truly benefits consumers or primarily benefits shareholder returns

Compiled from official sources — confirm details with the bill’s official record.

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