Maryland § 7-1003

§ 7-1003.

    (a)    (1)    On or before July 1, 2025, each investor–owned electric company shall file with the Commission one or more time–of–use tariffs for appropriate customer classes, to be made available to customers on an opt–in basis.

        (2)    Each time–of–use tariff shall establish a sufficient price discount for off–peak hours compared to peak hours, as determined by the market or an investor–owned electric company’s cost of service, to encourage customers to adjust electricity use to off–peak hours.

    (b)    (1)    (i)    An investor–owned electric company shall propose with each tariff or tariffs required under subsection (a) of this section a reasonable enrollment target to try to achieve by January 1, 2028.

            (ii)    The investor–owned electric company shall attempt to achieve the enrollment target through a combination of marketing, customer education, and other means to communicate the benefits and risks of time–of–use rates.

        (2)    (i)    The Commission may require an investor–owned electric company to automatically enroll in a time–of–use tariff customers that receive an incentive from the investor–owned electric company as part of a beneficial electrification program.

            (ii)    The Commission shall require an investor–owned electric company to provide to customers that are automatically enrolled in a time–of–use tariff in accordance with subparagraph (i) of this paragraph notice and an opportunity to opt out of the time–of–use tariff.

    (c)    On or before July 1, 2026, each investor–owned electric company shall submit a report to the Commission evaluating:

        (1)    the potential to avoid or defer electric distribution system capital projects through the use of time–of–use rates, demand–response and demand–side programs, and renewable on–site generating systems; and

        (2)    the merits and feasibility of transitioning all customers to a time–of–use tariff on an opt–out basis.

    (d)    In accordance with § 2–1257 of the State Government Article, on or before December 31, 2027, the Commission shall submit a report to the General Assembly on:

        (1)    the impacts of opt–in time–of–use tariffs on the electric distribution system;

        (2)    the timeline, feasibility, and merits of transitioning all customers to a time–of–use tariff on an opt–out basis; and

        (3)    whether a full transition to time–of–use rates is justified.

    (e)    An investor–owned electric company may recover all reasonable and prudent costs, including marketing costs, to achieve its proposed enrollment targets and execute its responsibilities in accordance with this section.

    (f)    For good cause shown, the Commission may delay for a reasonable period of time the deadline for an investor–owned electric company to comply with the provisions of this section.

    (g)    (1)    A municipal electric utility or electric cooperative may file with the Commission one or more time–of–use tariffs in the same manner as an investor–owned electric company under this section.

        (2)    If a municipal electric utility or electric cooperative elects to file with the Commission a time–of–use tariff under this section, the provisions of this section that apply to an investor–owned electric company shall also apply to the municipal electric utility or electric cooperative.