This amendment to HB 470 does the following: (1) Removes language that would leave battery storage in regulatory uncertainty as neither generation nor distribution units; (2) Requires any approval to include consideration of cost-effectiveness; (3) Removes cost recovery language more favorable to Exelon shareholders than Delmarva Power customers (providing return on equity, i.e.

Plain English Breakdown

The bill was stricken in the House, meaning it did not pass into law; all descriptions reflect what the amendment proposed before being removed.

Amendment to HB 470 on Battery Storage Rules

This amendment clarifies rules for battery storage systems owned by Delmarva Power, requiring them to be useful and affordable before approval.

What This Bill Does

• Removes language that left battery storage without a clear legal category as either generation or distribution units.
• Requires the Public Service Commission to check if battery projects are cost-effective before approving them.
• Deletes rules that would have guaranteed higher profits for Exelon shareholders compared to other customers by ensuring costs were recovered through a rider while also providing return on equity.
• Asks Delmarva Power to try to earn money from batteries by joining energy markets and using tax credits.
• Requires the Public Service Commission to decide how costs for these battery systems will be recovered.

Who It Names or Affects

• Delmarva Power (DP&L)
• The Maryland Public Service Commission
• Exelon shareholders
• Ratepayers who pay electricity bills

Terms To Know

Battery energy storage systems

Large batteries that store electricity from the grid to use at a later time.

Cost-effectiveness

A measure of whether a project provides more value or savings than it costs, specifically if it is prudent and gives net value to ratepayers.

Return on equity

The profit that shareholders earn from their investment in the company.

Limits and Unknowns

• This amendment was removed (stricken) by the House of Representatives on June 18, 2026.
• No effective date is listed because the bill did not become law after being stricken.
• The specific schedule for reports from Delmarva Power will be decided later by the Commission.

Official Summary Text

This amendment to HB 470 does the following:
(1) Removes language that would leave battery storage in regulatory uncertainty as neither generation nor distribution units;
(2) Requires any approval to include consideration of cost-effectiveness;
(3) Removes cost recovery language more favorable to Exelon shareholders than Delmarva Power customers (providing return on equity, i.e. profit, of “no less than” Delmarva Power’s approved return on equity, despite also recovering costs through a rider, which essentially guarantees Delmarva Power recovery of its costs); and
(4) Requires the Public Service Commission to determine the appropriate cost recovery mechanism for battery storage systems installed by Delmarva Power, and requires Delmarva Power to submit reports detailing cost effectiveness.

Current Bill Text

Legislation Document

SPONSOR:

Rep. Osienski

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE AMENDMENT NO. 1

TO

HOUSE BILL NO. 470

AMEND House Bill No. 470 by deleting lines 7 and 8 in their entirety and inserting in lieu thereof the following:

“

energy from the grid and discharging it at a later time.

”.

FURTHER AMEND House Bill No. 470 by deleting lines 33 through 46 in their entirety and inserting in lieu thereof the following:

“

c. DP&L may, after appropriate review and approval of the Commission, own and operate utility battery energy storage systems. The Commission’s review shall include a determination of the cost-effectiveness measured by whether the U-BESS are prudent and provide net value to ratepayers. To mitigate any cost shifts or negative impacts on ratepayers, DP&L shall make best efforts to maximize all applicable value streams from any battery energy storage systems, including participating in applicable PJM Interconnection markets and utilizing its battery energy storage systems to realize potential savings, including any applicable tax credits. After approval of any U-BESS, DP&L shall submit to the Commission, on a schedule determined by the Commission, reports containing information prescribed by the Commission to determine the effectiveness of the U-BESS, including benefits and revenue generated.

”.

SYNOPSIS

This amendment to HB 470 does the following:

(1) Removes language that would leave battery storage in regulatory uncertainty as neither generation nor distribution units;

(2) Requires any approval to include consideration of cost-effectiveness;

(3) Removes cost recovery language more favorable to Exelon shareholders than Delmarva Power customers (providing return on equity, i.e. profit, of “no less than” Delmarva Power’s approved return on equity, despite also recovering costs through a rider, which essentially guarantees Delmarva Power recovery of its costs); and

(4) Requires the Public Service Commission to determine the appropriate cost recovery mechanism for battery storage systems installed by Delmarva Power, and requires Delmarva Power to submit reports detailing cost effectiveness.