Large Load Customers - Data Centers and Rate Schedule Requirements

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1082*

HOUSE BILL 1082
C5 6lr2605

By: Delegate R. Long
Introduced and read first time: February 10, 2026
Assigned to: Environment and Transportation

A BILL ENTITLED

AN ACT concerning 1

Large Load Customers – Data Centers and Rate Schedule Requirements 2

FOR the purpose of applying certain rate schedule requirements for large load customers 3
to certain data centers; modifying the date by which certain electric companies must 4
submit to the Public Service Commission for approval certain rate schedules for large 5
load customers; and generally relating to data centers and large load customers. 6

BY repealing and reenacting, with amendments, 7
Article – Public Utilities 8
Section 4–212 9
Annotated Code of Maryland 10
(2025 Replacement Volume and 2025 Supplement) 11

BY repealing and reenacting, without amendments, 12
Article – Tax – General 13
Section 11–239(a)(1) and (2) 14
Annotated Code of Maryland 15
(2022 Replacement Volume and 2025 Supplement) 16

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18

Article – Public Utilities 19

4–212. 20

(a) (1) In this section the following words have the meanings indicated. 21

(2) “Contract capacity” means the amount of monthly peak load 22
requirements: 23

2 HOUSE BILL 1082

(i) that is mutually agreed to by an electric company and a large 1
load customer for each month remaining in a contract term after the load ramp period has 2
ended; and 3

(ii) for which: 4

1. the electric company agrees to provide all of the 5
components of retail electric service subject to the terms and conditions in its tariffs; and 6

2. the large load customer agrees to purchase service at that 7
load level for the stated term of the co ntract and under the same terms and conditions as 8
those stated in the contract. 9

(3) “DATA CENTER” HAS THE MEANING STAT ED IN § 11–239 OF THE 10
TAX – GENERAL ARTICLE. 11

[(3)] (4) “Large load customer” means a commercial or industrial 12
customer for retail electric service that: 13

(i) 1. has or is projected to have an aggregate monthly demand 14
of at least 100 megawatts; and 15

[(ii)] 2. has or is projected to have a load factor of over 80%; OR 16

(II) IS A DATA CENTER. 17

[(4)] (5) “Load ramp period” mean s the period of time from 18
commencement of service until a large load customer’s billing calculation is based on the 19
full contract capacity. 20

(b) It is the intent of the General Assembly that residential retail electric 21
customers in the State should not be ar the financial risks associated with large load 22
customers interconnecting to the electric system serving the State. 23

(c) (1) (i) On or before [September 1, 2026 ] JANUARY 1, 2027, each 24
investor–owned electric company and each electric cooperative shall submit to the 25
Commission for approval a specific rate schedule for large load customers that accomplishes 26
the intent of subsection (b) of this section. 27

(ii) Each municipal electr ic utility that receives an application for 28
retail electric service from a large load customer shall submit to the Commission for 29
approval a specific rate schedule for large load customers. 30

(2) (i) [Service] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF 31
THIS PARAGRAPH, SERVICE under a specific rate schedule shall be available to large load 32
customers that will use, within the initial contract term: 33
HOUSE BILL 1082 3

1. a monthly maximum demand of more than 100 megawatts 1
at a single location; or 2

2. an aggregated contract capacity in the electric company’s 3
service territory of more than 100 megawatts. 4

(II) SERVICE UNDER A SPECI FIC RATE SCHEDULE SH ALL BE 5
AVAILABLE TO A DATA CENTER REGARDLESS OF THE MONTHLY MAXIMUM DEMAND 6
OR THE AGGREGATED CO NTRACT CAPACITY OF T HE DATA CENTER WITHIN THE 7
INITIAL CONTRACT TERM. 8

[(ii)] (III) Except as provided in subparagraph [(iii)] (IV) of this 9
paragraph, large load customers that qualify for a specific rate schedule after the effective 10
date of that schedule: 11

1. shall take service under the specific rate schedule; and 12

2. may not be allowed to take service under any other 13
existing schedule. 14

[(iii)] (IV) A specific rate schedule does not apply to the facility of an 15
existing large load customer that has signed a service agreement before the effective date 16
of the schedule if: 17

1. the large load customer’s existing load does not expand by 18
more than 25 megawatts at that facility under the existing service agreement; or 19

2. the large load customer IS NOT A DATA CENTER AND does 20
not sign a new service agreement to expand the facility’s load by more than 25 megawatts 21
above the contract capacity of the existing service agreement. 22

(d) In making a determination on whether to approve a specific rate schedule 23
submitted under subsection (c) of this section, the Commission shall consider whether the 24
rate schedule: 25

(1) requires a large load customer to cover the just and reasonable costs 26
associated with any electric transmission or distribution system buildout required to: 27

(i) interconnect the large load customer to the electric system 28
serving the State; or 29

(ii) serve the large load customer; 30

(2) protects residential retail electr ic customers from the financial risks 31
associated with large load customers through the use of: 32
4 HOUSE BILL 1082

(i) load ramp periods; 1

(ii) minimum billing demand for electric distribution and 2
transmission service that is a high percentage of a large load customer’s contract capacity; 3

(iii) long–term contractual commitments and exit fees; 4

(iv) guarantee or collateral requirements; and 5

(v) penalties and reimbursement requirements for the large load 6
customer if the large load customer delays or ca ncels a project after the electric company 7
has begun buildout to accommodate the large load customer; and 8

(3) sufficiently ensures that the allocation of costs to large load customers 9
under the schedule does not result in customers that are not large lo ad customers 10
unreasonably subsidizing the costs of large load customers under the schedule. 11

(e) Before signing a contract for service under a specific rate schedule submitted 12
under subsection (c) of this section, a large load customer under the schedule is required 13
to: 14

(1) submit a request for a load study to determine the necessary contract 15
capacity for the large load customer and pay any applicable fees associated with the study; 16

(2) designate a specific site where the large load customer’s project will be 17
constructed and served by the electric company; 18

(3) own or have the exclusive right to use the land designated in item (2) of 19
this subsection for the project; and 20

(4) meet any other requirements specified under the rate schedule. 21

(f) (1) On or before [June] OCTOBER 1, 2026, the Commission shall adopt 22
regulations to carry out this section. 23

(2) The regulations shall: 24

(i) establish minimum notice requirements and deadlines related to 25
load study requests and contract terminations and adjustments; 26

(ii) if considered necessary by the Commission, specify common 27
forms of acceptable collateral to satisfy the requirements of this section; and 28

(iii) establish deadlines related to completion of load studies and 29
payment of fees. 30

HOUSE BILL 1082 5

Article – Tax – General 1

11–239. 2

(a) (1) In this section the following words have the meanings indicated. 3

(2) “Data center” means a building or group of buildings used to house 4
computer systems, computer storage equipment, and associated infrastructur e that 5
businesses or other organizations use to organize, process, store, and disseminate large 6
amounts of data. 7

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 8
1, 2026. 9