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HB 940

Large Load Customers - Electric System Interconnection and Demand Response Program

2026 Regular Session Introduced by Lorig Charkoudian

Maryland bill allowing large electricity customers to interconnect directly to grid and participate in demand response programs to reduce peak demand and lower system costs.

First Reading Environment and Transportation
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Bill Summary · HB 940

Legislative bill overview

HB 940 establishes a framework for large industrial and commercial electricity customers to directly interconnect with Maryland's electric system and participate in demand response programs. The bill creates standards for these customers to reduce or shift their power consumption during peak demand periods in exchange for potential financial incentives or rate reductions.

Why is this important

Large industrial customers account for significant portions of peak electricity demand, and their voluntary participation in demand response can reduce strain on the grid, potentially lowering overall system costs and deferring costly infrastructure upgrades. This approach also gives major electricity consumers more control over their energy costs and operational flexibility while supporting grid stability.

Potential points of contention

  • Rate impacts on other customers: If large customers receive substantial discounts for demand response participation, the costs may be shifted to residential and small business ratepayers through higher standard rates
  • Utility revenue concerns: Electric utilities may resist programs that reduce peak demand charges, which traditionally represent significant revenue streams and fund infrastructure maintenance
  • Technical complexity and equity: Smaller customers may lack the technical capacity or financial resources to participate in similar interconnection and demand response opportunities, potentially widening the gap between large and small consumers

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

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