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HB 1082

Large Load Customers - Data Centers and Rate Schedule Requirements

2026 Regular Session Introduced by Bob Long

Data centers are defined as large load customers and must use a specific rate schedule by 2027, with protections for residential customers and updated PSC rules.

Hearing 3/03 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 1082

Purpose and intent

  • HB 1082 aims to regulate rate schedules for large electric load customers by explicitly including data centers as large load customers, regardless of their actual monthly demand or load factor.
  • The bill seeks to ensure residential customers are not financially at risk from large load interconnections and to require electric utilities to file specific rate schedules for large load customers with the Public Service Commission (PSC).
  • It also updates timing: extends filing deadlines for utilities to seek PSC approval and for PSC adoption of related regulations.

Key provisions and changes

  • Definitions
    • Data centers are explicitly defined to be included in the target category of large load customers, regardless of their demand or load factor.
    • The term “large load customer” is expanded to encompass data centers, even if they do not meet the prior minimum demand or load-factor thresholds.
  • Rate schedules for large load customers
    • By January 1, 2027 (previous deadline was September 1, 2026), investor-owned electric companies, electric cooperatives, and municipal electric utilities must submit to PSC for approval a specific rate schedule designed for large load customers.
    • Service under a specific rate schedule must be available to large load customers with:
    • Monthly maximum demand > 100 MW at a single location, or
    • Aggregated contract capacity > 100 MW in the utility’s service territory.
    • For data centers, the specific rate schedule applies regardless of the data center’s monthly maximum demand or aggregated capacity within the initial contract term.
  • Transition and applicability rules
    • New schedule: Large load customers qualifying after the schedule’s effective date must take service under the specific rate schedule and generally may not use other existing schedules.
    • Exceptions: If an existing large load customer signed a service agreement before the schedule’s effective date, the schedule may not apply if: 1) the existing load does not expand by more than 25 MW, or 2) the customer is not a data center and does not sign a new agreement to expand by more than 25 MW above contract capacity.
  • Customer requirements before contracting
    • A large load customer must:
    • Request and pay for a load study to determine needed contract capacity,
    • Designate a specific project site and own or have exclusive rights to use the land,
    • Meet other schedule-specific requirements.
  • PSC regulatory framework
    • By June 1, 2026, PSC must adopt regulations to implement the rate schedule requirements, including:
    • Minimum notice deadlines for load studies and contract terminations/adjustments,
    • Accepted collateral forms (if needed),
    • Deadlines for load study completion and fee payment.
  • Cost allocation and protections
    • PSC must consider whether the rate schedule requires the large load customer to cover necessary transmission/distribution buildout costs.
    • The schedule must protect residential customers through mechanisms such as load ramp periods, minimum billing demand, long-term commitments and exit fees, collateral requirements, penalties and reimbursements for project delays or cancellations, and avoidance of cross-subsidization.
  • Effective date
    • The act takes effect June 1, 2026.

Who is affected

  • Large load customers, including all data centers, across investor-owned electric companies, electric cooperatives, and municipal electric utilities in Maryland.
  • Municipal electric utilities that may see additional regulatory filing requirements for data centers and large load customers.
  • Residential customers, who are protected from potential cost shifts associated with large load interconnections.
  • Small businesses operating data centers could face higher electricity costs if subject to the specific rate schedule.

Procedural and timeline aspects

  • Filing deadlines:
    • Extended: Utilities must file large load rate schedules with PSC by January 1, 2027 (extended from September 1, 2026).
  • Regulatory action:
    • PSC must adopt implementing regulations by October 1, 2026 (extended from June 1, 2026).
  • Effective date:
    • The Act takes effect June 1, 2026.

Fiscal and policy implications

  • State and local fiscal impact: PSC and related offices can implement with existing resources; no direct revenue impact anticipated.
  • Rate impact: Potential changes to electricity rates for large load customers and possibly higher costs for some small businesses or municipal utilities due to new regulatory requirements and the shift to specific rate schedules for data centers.
  • Administrative burden: Municipal utilities and data-center operators may incur additional filing and compliance costs.

This summary captures the bill’s core changes: explicitly including data centers as large load customers for rate scheduling, extending filing/regulatory deadlines, and establishing protections and study requirements designed to limit residential risk and ensure cost allocation reflects actual needs.

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

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