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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1442*
HOUSE BILL 1442
C5, L6 6lr2918
By: Delegates J. Long, Charkoudian, and Ivey
Introduced and read first time: February 13, 2026
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Community Choice Aggregation Pilot Program – Definition, Application, and 2
Workgroup – Modifications 3
FOR the purpose of modifying the definition of “community choice aggregator” for purposes 4
of the Community Choice Aggregation Pilot Program to include residential electric 5
customers served by certain electric cooperatives; expanding the application of the 6
Community Choice Aggregation Pilot Program to apply to all counties and Baltimore 7
City instead of applying to Montgomery County only; modifying the membership of 8
the Community Choice Energy Workgroup; and generally relating to the Community 9
Choice Aggregation Pilot Program. 10
BY repealing and reenacting, without amendments, 11
Article – Corporations and Associations 12
Section 5–601(a) and (f) 13
Annotated Code of Maryland 14
(2025 Replacement Volume) 15
BY repealing and reenacting, without amendments, 16
Article – Public Utilities 17
Section 1–101(a), (b), (h), and (hh), 7–507(a), and 7–510(i) 18
Annotated Code of Maryland 19
(2025 Replacement Volume and 2025 Supplement) 20
BY repealing and reenacting, with amendments, 21
Article – Public Utilities 22
Section 1–101(f) and 7–510.3 23
Annotated Code of Maryland 24
(2025 Replacement Volume and 2025 Supplement) 25
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27
2 HOUSE BILL 1442
Article – Corporations and Associations 1
5–601. 2
(a) In this subtitle the following words have the meanings indicated. 3
(f) “Member–regulated cooperative” means a cooperative: 4
(1) That provides retail electric service to its members on the Eastern 5
Shore of Maryland; and 6
(2) Whose board of directors has passed a binding resolution to operate as 7
a member–regulated cooperative. 8
Article – Public Utilities 9
1–101. 10
(a) In this division the following words have the meanings indicated. 11
(b) (1) “Aggregator” means an entity or an individual that acts on behalf of a 12
customer to purchase electricity or gas. 13
(2) “Aggregator” does not include: 14
(i) an entity or individual that purchases electricity or gas only for 15
its own use or for the use of its subsidiaries or affiliates; 16
(ii) a municipal electric utility or a municipal gas utility serving only 17
in its distribution territory; or 18
(iii) a combination of governmental units that purchases electricity 19
or gas for use by the governmental units. 20
(f) “Community choice aggregator” means a county that serves as an electric 21
aggregator for the purpose of negotiating the purchase of electric generation services from 22
an electricity supplier licensed by the Commission or from an electric generating or storage 23
facility, or providing electricity from an electric generating facility owned by the aggregator 24
for residential electric cust omers, which include master –metered multiple occupancy 25
residences and small commercial electric customers, as defined in § 7–510.3 of this article, 26
that: 27
(1) are located within the county, including customers located within 28
municipal corporations located in the county; 29
(2) have not: 30
HOUSE BILL 1442 3
(i) selected an electricity supplier other than the standard offer 1
service supplier; or 2
(ii) refused to participate in the aggregation activities of the county; 3
and 4
(3) are not located in the service territory of: 5
(i) a municipal electric utility; [or] 6
(ii) [an electric cooperative ] A MEMBER –REGULATED 7
COOPERATIVE AS DEFINED IN § 5–601 OF THE CORPORATIONS AND ASSOCIATIONS 8
ARTICLE; OR 9
(III) A SMALL RURAL ELECTRIC COOPERATIVE. 10
(h) “County” means a county of the State or Baltimore City. 11
(hh) “Small rural electric cooperative” means an electric company that: 12
(1) serves only the consumers that exclusively own and control the 13
company; 14
(2) conducts its business on a nonprofit basis; and 15
(3) supplies electricity to less than 1,000 electric meters in the State. 16
7–507. 17
(a) A person, other than an electric company providing standard offer service 18
under § 7–510(c) of this subtitle, a municipal electric utility serving customers solely in its 19
distribution territory, the Department of General Services selling energy under § 7 –704.4 20
of this title, or a community choice aggregator under § 7 –510.3 of this subtitle, may not 21
engage in the business of an electricity supplier in the State unless the pe rson holds a 22
license issued by the Commission. 23
7–510. 24
(i) Except as provided in § 7 –510.3 of this subtitle, a county or municipal 25
corporation may not act as an aggregator unless the Commission determines there is not 26
sufficient competition within the boundaries of the county or municipal corporation. 27
7–510.3. 28
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(a) In this section, “small commercial electric customer” means a commercial 1
electric customer that has a peak electric load of not more than 25 kilowatts and includes 2
master–metered multiple occupancy residences that have a peak electric load of not more 3
than 25 kilowatts. 4
(b) [This section applies only in Montgomery County. 5
(c)] (1) There is a Community Choice Aggregation Pilot Program. 6
(2) Beginning December 31, 2023, a county may form a community choice 7
aggregator under this section. 8
[(d)] (C) (1) At least 60 days before initiating the process to form a 9
community choice aggregator, a county shall: 10
(i) develop an aggregation plan; 11
(ii) give written notice of the aggregation plan to each residential 12
and small commercial electric customer in the county; 13
(iii) publish a fair summary of the aggregation plan in at least one 14
newspaper of general circulation in the county; 15
(iv) if the county maintains a website, publish the full text of the 16
aggregation plan on the website; and 17
(v) give, for the Commission’s approval, written notice of its 18
intention to initiate a process to form a community choice aggregator. 19
(2) The aggregation plan shall: 20
(i) detail the processes related to participating in the aggregation 21
activities of a community choice aggregator; 22
(ii) contain information on the operations, funding, and 23
organizational structure of the community choice aggregator; 24
(iii) provide details on: 25
1. the rat e setting and costs to participants, including an 26
analysis of historical and forecasted trends in electricity prices and a purchasing plan 27
designed to save ratepayers money; 28
2. methods that the community choice aggregator must use 29
for entering into and terminating agreements with other entities; 30
HOUSE BILL 1442 5
3. the rights and responsibilities of participating electric 1
customers; and 2
4. the termination of the aggregation program, if any; and 3
(iv) provide for universal electricity access, reliability, and equitable 4
treatment of all residential and small commercial electric customers in the county. 5
[(e)] (D) (1) At least 60 days after developing an aggregation plan and giving 6
the notice required under subsection [(d)] (C) of this section, a county may i nitiate the 7
process of forming a community choice aggregator by filing with the Commission: 8
(i) a notice of intent to form a community choice aggregator; 9
(ii) a copy of the aggregation plan developed in accordance with 10
subsection [(d)] (C) of this section; 11
(iii) a draft local law forming a community choice aggregator; and 12
(iv) proposed terms of service, rates, and categories of charges, fees, 13
or any other costs to customers unrelated to the actual cost of the electricity supply. 14
(2) The notice of intent shall include the name of the county in the 15
community choice aggregator. 16
(3) A county is a community choice aggregator after: 17
(i) submitting the notice of intent and aggregation plan required 18
under this subsection; 19
(ii) the Commission has approved its aggregation plan and proposed 20
terms filed in accordance with paragraph (1)(iv) of this subsection; and 21
(iii) enacting a local law that provides that the county shall act as a 22
community choice aggregator. 23
[(f)] (E) (1) In accor dance with a schedule established by the Commission 24
under subsection [(l)] (K) of this section, if a county enacts a local law to act as a community 25
choice aggregator, the county shall provide or cause its selected electricity supplier, if any, 26
to provide written notice of the formation of the community choice aggregator to all 27
residential and small commercial electric customers in the county. 28
(2) The notice required under this subsection shall include: 29
(i) the identity and Commission –issued license numbers of any 30
selected electricity supplier; 31
6 HOUSE BILL 1442
(ii) terms and conditions of service; 1
(iii) new rates, charges, and fees for service under the community 2
choice aggregator; 3
(iv) a comparison of the new rates and the rates under the current 4
standard offer service; 5
(v) information on how to access the standard offer service available 6
from an electric company; and 7
(vi) the total renewable component of the electricity to be supplied 8
through a community choice aggregator, including the specific sources of any renewable 9
energy compared to the requirements under current law, if any. 10
(3) In the notice required under this subsection, the county shall provide to 11
the residential and small commercial electric customers in the county the opportunity t o 12
refuse to participate in the aggregation activities of the community choice aggregator: 13
(i) by return submission of the notice to the community choice 14
aggregator or the electric company indicating the customer’s decision to refuse to 15
participate in the aggregation activities of the community choice aggregator; or 16
(ii) by contracting for service with a retail electricity supplier or by 17
choosing standard offer service from an electric company. 18
(4) A county that enacts a local law to act as a community choice aggregator 19
under this section may not exclude from the ability to participate in the aggregation 20
activities of the community choice aggregator: 21
(i) any residential or small commercial electric customer in the 22
county; or 23
(ii) for the provision of electric service for facilities located within the 24
jurisdiction of the community choice aggregator, any governmental entity. 25
[(g)] (F) A residential or small commercial electric customer is deemed to have 26
given permission to the county to act on the customer’s behalf as a community choice 27
aggregator: 28
(1) when the county receives from the customer: 29
(i) a reply from the notice required under subsection [(f)] (E) of this 30
section by which the customer explicitly grants permission for the cus tomer to receive 31
service with the community choice aggregator; or 32
HOUSE BILL 1442 7
(ii) an application to receive service with the community choice 1
aggregator; 2
(2) in the case of a customer receiving standard offer service, within 30 3
days after the notice required by subsection [(f)] (E) of this section is given if: 4
(i) the county has not received a returned notice by that date; or 5
(ii) after the creation of the community choice aggregator and receipt 6
of the notice, the customer has not contracted with a retail electricity supplier or contacted 7
an electric company to select standard offer services; or 8
(3) on applying for new electric service within the territory served by the 9
community choice aggregator, unless the customer has: 10
(i) contracted with a retail electricity supplier for service; or 11
(ii) contacted an electric company to select standard offer service. 12
[(h)] (G) Except for a contract that automatically renews, at the end of a contract 13
term with an electricity supplier a residential or small commercial electric customer in the 14
jurisdiction of a community choice aggregator shall be automatically enrolled as a 15
participant in the aggregation activities of the community choice aggregator unless the 16
customer: 17
(1) gives written notice to the county declining to participate in the 18
aggregation activities of the community choice aggregator; or 19
(2) contracts for service with a retail electricity supplier or contacts an 20
electric company to select standard offer service. 21
[(i)] (H) This section may not be construed to prevent a residential or small 22
commercial electric customer in the county from choosing at any time: 23
(1) to enter into a contract with an electricity supplier other than the 24
community choice aggregator; or 25
(2) the standard offer service offered by an electric company. 26
[(j)] (I) (1) A community choice aggregator may not assess any new fee, tax, 27
or other charge in the aggregation charges or rates that is not related to the cost of: 28
(i) providing electricity supply and elect ricity supply service, 29
including service from a generating station owned by the community choice aggregator; 30
(ii) promoting the use of renewable energy; and 31
8 HOUSE BILL 1442
(iii) providing and promoting energy efficiency programs promoted 1
under paragraph (2) or (3) of this subsection. 2
(2) A community choice aggregator, in consultation with all 3
[investor–owned] electric companies whose service territories include all or part of the 4
county and the Department of Housing and Community Development, may promote energy 5
efficiency programs that are: 6
(i) offered by the [investor–owned] electric companies; or 7
(ii) filed by the [investor–owned] electric companies with the 8
Commission for its approval in accordance with Subtitle 2, Part II of this title. 9
(3) In addition to the authority granted under paragraph (2) of this 10
subsection, a community choice aggregator may provide and promote energy efficiency 11
programs that are supplemental to any programs that are promoted under paragraph (2) 12
of this subsection. 13
[(k)] (J) (1) Except for the purposes of meeting the requirements of the 14
renewable energy portfolio standar d under Subtitle 7 of this title, a community choice 15
aggregator may not be considered to be an electricity supplier under § 7 –507(a) of this 16
subtitle. 17
(2) (i) A community choice aggregator may own an electric generating 18
facility or an electric storage facility in accordance with this article if the facility is designed 19
to provide energy primarily for use by the participants of the community choice aggregator. 20
(ii) When a community choice aggregator builds or acquires an 21
electric generating facility o r electric storage facility, the community choice aggregator 22
shall submit to the Commission a plan for the use or disposition of the facility if the 23
community choice aggregator is dissolved. 24
(3) (i) A community choice aggregator may contract for service from an 25
electric generating facility in accordance with this article if the amount of contracted 26
electricity supply from the facility is not greater than the amount estimated to be necessary 27
to meet the electrical demand of the participants of the community choice aggregator. 28
(ii) When a community choice aggregator contracts for service from 29
an electric generating facility for a period exceeding 2 years, the community choice 30
aggregator shall submit to the Commission a plan for the transfer of the contract to another 31
electricity supplier if: 32
1. the community choice aggregator is dissolved; or 33
2. the pilot program ends without an extension or the 34
creation of a permanent community choice aggregator. 35
HOUSE BILL 1442 9
(4) Any contract relating to the provision of electric service by a community 1
choice aggregator, including any contract for the supply of electricity or the procurement or 2
financing of electric generation services shall allow for or anticipate the potential adoption 3
of an alternative resource adequacy mechanism that could apply in the State. 4
[(l)] (K) (1) Based on a determination of the mitigation of volumetric risk, 5
the Commission may establish by order or regulation a schedule that may not exceed a 6
period of 2 years, by which a community choice aggregator may transfer load from standard 7
offer service to retail or wholesale contracts under an aggregation plan. 8
(2) The Commission shall consider the impacts to the price and stability of 9
the procurement of standard offer service when considering a schedule under paragraph 10
(1) of this subsection. 11
[(m)] (L) (1) A county that is forming a community choice aggregator is 12
deemed to have obtained electric customer authorization to retrieve preenrollment usage 13
data for residential and small commercial electric customers in the county. 14
(2) In accordance with procedures established by the Commission, an 15
electric company shall provide to a community choice aggregator any relevant data for 16
customers in the jurisdiction of the community choice aggregator, including: 17
(i) preenrollment usage data; and 18
(ii) any other appropriate billing and electrical load data. 19
(3) An electric company shall provide to a county that is forming a 20
community choice aggregator data under this subsection as follows: 21
(i) only aggregate data when the county initiates the process of 22
forming a community choice aggregator; and 23
(ii) any customer –specific data after the aggregation plan is 24
approved by the Commission. 25
[(n)] (M) The Commission shall review applicable fees, request formats, and the 26
format of data provided to facilitate the intent of this section. 27
[(o)] (N) The Commission shall establish procedures for an electric customer 28
that is receiving electricity supply through a community choice aggregator to rece ive any 29
bill assistance credit or arrearage assistance to which the customer may be entitled under 30
§ 7 –512.1 of this subtitle or any other federal or State bill and arrearage assistance 31
administered by the Office of Home Energy Programs. 32
[(p)] (O) The Co mmission may allocate the portion of delinquent accounts 33
receivable that is attributable to electricity supply between the electric customers 34
participating in the aggregation activities of a community choice aggregator and the electric 35
10 HOUSE BILL 1442
customers throughout the electric company’s service territory if the Commission 1
determines that: 2
(1) the amount of delinquent accounts receivable attributable to electric 3
customers receiving standard offer service is projected to increase to an extent that will 4
materially adversely impact the cost of providing standard offer service; and 5
(2) the projected increase in the amount of delinquent accounts receivable 6
attributable to electric customers receiving standard offer service is directly or indirectly 7
caused by the migration of a substantial number of electric customers from standard offer 8
service to participation in the aggregation activities of a community choice aggregator. 9
[(q)] (P) Bills sent to electric customers that participate in the aggregation 10
activities of a community choice aggregator shall identify the community choice aggregator 11
as the electricity supplier. 12
[(r)] (Q) (1) In this subsection, “Workgroup” means the Community Choice 13
Energy Workgroup established in accordance with this subsection. 14
(2) On or before September 1, 2021, the Commission shall establish a 15
Community Choice Energy Workgroup. 16
(3) The Workgroup shall consist of at least the following members: 17
(i) one representative [of the Montgomery County government ] 18
FROM EACH COUNTY GOVERNME NT THAT HAS GIVEN THE COMMISSION WRITTEN 19
NOTICE OF ITS INTENTION TO INITIATE A PROCESS TO FORM A COMMUNITY CHOICE 20
AGGREGATOR UNDER SUBSECTION (C)(1)(V) OF THIS SECTION; 21
(ii) one representative of the Office of People’s Counsel; 22
(iii) one representative of each [investor–owned] electric company 23
whose service territory includes all or part of a county that participates in the pilot 24
program; 25
(iv) one representative of any competitive electricity supplier; 26
(v) one representative of residential and small commercial electric 27
customers; 28
(vi) one representative of low–income communities; 29
(vii) one representative of minority residential communities; 30
(viii) one representative with expertise in implementing community 31
choice aggregation programs; and 32
HOUSE BILL 1442 11
(ix) any other individuals identified by the Commission. 1
(4) The Commission shall provide staff for the Workgroup. 2
(5) Nothing in this subsection may be construed to limit the authority of 3
the Commission to take any a ction, including the adoption of regulations, without a 4
recommendation from the Workgroup. 5
(6) (i) During any year that a community choice aggregator operates in 6
the State, the Workgroup shall submit an annual report on the status of the community 7
choice aggregator to the Commission. 8
(ii) The Workgroup shall include in the annual report information 9
regarding: 10
1. rates, charges, and fees for service under each community 11
choice aggregator; 12
2. renewable energy; 13
3. customer satisfaction; 14
4. enrollment; and 15
5. any other information or metric determined by the 16
Workgroup or requested by the Commission. 17
[(s)] (R) (1) The Commission shall by regulation establish standards and 18
procedures to protect the consumer rights of residential customers within the territory of a 19
community choice aggregator that receive electricity supply through the community choice 20
aggregator. 21
(2) The regulations shall prohibit discrimination against a customer on the 22
basis of the location of the customer. 23
(3) The Commission shall seek the advice and recommendation of the 24
Community Choice Energy Workgroup established under subsection [(r)] (Q) of this section 25
when carrying out the provisions of this section and adopting regulations. 26
[(t)] (S) (1) The pilot program shall: 27
(i) begin on the earlier of: 28
1. the date that a county gives notice to the Commission of 29
its intention to initiate a process to form a community choice aggregator, in accordance with 30
subsection [(d)(1)(v)] (C)(1)(V) of this section; or 31
12 HOUSE BILL 1442
2. April 1, 2024; and 1
(ii) end 7 years after the beginning date, but not sooner than April 2
1, 2031. 3
(2) On or before April 1 of the sixth year after the beginning of the pilot 4
program, the Commission shall, in accordance with § 2–1257 of the State Government 5
Article, report to the General Assembly on the status and effectiveness of the pilot program. 6
[(u)] (T) (1) At the conclusion of the pilot program described in this section, 7
the Commission shall study: 8
(i) the overall costs and benefits of the pilot program; 9
(ii) whether there were any incremental costs borne by standard 10
offer service customers resulting from the migration of customers between the community 11
choice aggregator and standard offer service; and 12
(iii) what mechanisms could be implemented to hold standard offer 13
service customers harmless from any incremental costs borne by standard offer service 14
customers identified under item (ii) of this paragraph. 15
(2) The Commission shall seek the advice and recomm endation of the 16
Community Choice Energy Workgroup in the study required under this subsection. 17
(3) On or before December 31, 2031, the Commission shall report the 18
findings of the study to the Governor and the General Assembly, in accordance with § 19
2–1257 of the State Government Article. 20
[(v)] (U) On or before December 31, 2023, the Commission shall adopt 21
regulations to implement this section, including regulations for: 22
(1) consumer protection; 23
(2) procedures to consider and review the analysis o f historical and 24
forecasted trends in electricity prices and a purchasing plan designed to save ratepayers 25
money, submitted by county; 26
(3) a tariff structure for community choice aggregation noncommodity fees 27
and charges; 28
(4) a protocol for data exch ange between community choice aggregators, 29
retail suppliers, and electric companies, including prohibitions on the community choice 30
aggregator from sharing, disclosing, or otherwise making accessible to a third party a 31
customer’s personal information; 32
HOUSE BILL 1442 13
(5) procedures by which a community choice aggregator may transfer load 1
from standard offer service to retail or wholesale contracts under an aggregation plan; 2
(6) the method by which the cost of delinquent accounts of a community 3
choice aggregator may be recovered from customers; 4
(7) procedures for enrolling a customer for service with a community choice 5
aggregator on expiration of the customer’s retail supply contract; 6
(8) procedures to protect a customer’s privacy and confidential data 7
collected or held by a community choice aggregator; 8
(9) procedures to mitigate any risk to standard offer service customers 9
caused by the potential for customers to migrate from a community choice aggregator to 10
standard offer service; 11
(10) procedures by which a community choice aggregator may be dissolved, 12
including procedures for the transfer of customers to standard offer service and the resale 13
of contracted electricity supply; 14
(11) the approval of a tariff structure for community choice [aggregrator] 15
AGGREGATOR interactions with electric companies, including: 16
(i) billing and payment collection; 17
(ii) dispute resolution; 18
(iii) financial settlement; 19
(iv) losses; 20
(v) metering services; 21
(vi) PJM Interconnection requirements; 22
(vii) scheduling; and 23
(viii) utility charges; and 24
(12) procedures to require that: 25
(i) a community choice aggregator that transfers all customers back 26
to standard offer service is considered to be dissolved; and 27
(ii) if a community choice aggregator is considered to be dissolved, it 28
may not be reformed except through the process of forming a new community choice 29
aggregator in accordance with this section. 30
14 HOUSE BILL 1442
[(w)] (V) [The Montgomery County government ] A COUNTY THAT FORMS A 1
COMMUNITY CHOICE AGGREGATOR UNDER THIS SECTION shall: 2
(1) be solely responsible for the costs associated with any stranded costs 3
for: 4
(i) contracts entered into by the community choice aggregator for 5
electric supply; or 6
(ii) generation owned by a community choice aggregator; and 7
(2) pay for any costs the [Montgomery County ] COUNTY government is 8
responsible for under item (1) of this subsection. 9
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 10
October 1, 2026. 11