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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1494*
HOUSE BILL 1494
C5 6lr2410
By: Delegate J. Long
Introduced and read first time: February 13, 2026
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Electricity and Retail Gas Supply – Customer Choice, Consumer Protection, and 2
Green Power 3
(Retail Energy Modernization and Consumer Choice Act) 4
FOR the purpose of authorizing the offer and use of certain time–of–use rates and products 5
relating to residential electricity supply and residential retail gas supply , including 6
offering the rates for a term greater than a certain number of months ; authorizing 7
the sale and purchase of accounts receivable for certain products; authorizing certain 8
energy resource aggregators to act without the direction of an electric company ; 9
requiring the Public Service Commission to adopt certain regulations regarding 10
consolidated billing, protocols for purchasing certain accounts receivable, 11
cybersecurity standards and information exchange protocols, and nondiscriminatory 12
and expedited interconnection procedures; exempting certain green power products 13
from certain provisions regarding the marketing, price, and offering of green power; 14
and generally relating to residential electricity supply, retail gas supply, and green 15
power. 16
BY repealing and reenacting, without amendments, 17
Article – Public Utilities 18
Section 7–220(a) and (e), 7–501(a), and 7–1001(a), (d), and (e) 19
Annotated Code of Maryland 20
(2025 Replacement Volume and 2025 Supplement) 21
BY adding to 22
Article – Public Utilities 23
Section 7–501(f–1), (f–2), (g–1), and (g–2) and 7–510(j) and (k) 24
Annotated Code of Maryland 25
(2025 Replacement Volume and 2025 Supplement) 26
BY repealing and reenacting, with amendments, 27
Article – Public Utilities 28
2 HOUSE BILL 1494
Section 7–510(d), 7–604.2(a) and (b), and 7–707(a) and (b) 1
Annotated Code of Maryland 2
(2025 Replacement Volume and 2025 Supplement) 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
That the Laws of Maryland read as follows: 5
Article – Public Utilities 6
7–220. 7
(a) In this part the following words have the meanings indicated. 8
(e) “Demand response program” means a program established by an electric 9
company, an electricity supplier, or a third party that promotes changes in electric usage 10
by customers from their normal consumption patterns in response to: 11
(1) changes in the price of electricity over time; or 12
(2) incentives designed to: 13
(i) induce lower electricity use at times of high wholesale market 14
prices; or 15
(ii) ensure system reliability. 16
7–501. 17
(a) In this subtitle the following words have the meanings indicated. 18
(F–1) “DEMAND RESPONSE PROGRAM” HAS THE MEANING STATED IN § 7–220 19
OF THIS TITLE. 20
(F–2) “DISTRIBUTED ENERGY R ESOURCE” HAS THE MEANING STAT ED IN § 21
7–1001 OF THIS TITLE. 22
(G–1) “ELECTRIC DISTRIBUTION SUPPORT SERVICES ” HAS THE MEANING 23
STATED IN § 7–1001 OF THIS TITLE. 24
(G–2) “EMISSIONS–FREE ENERGY CERTIFIC ATE” HAS THE MEANING STAT ED 25
IN § 7–707 OF THIS TITLE. 26
7–510. 27
(d) (1) This subsection applies to residential electricity supply other than 28
supply offered through: 29
HOUSE BILL 1494 3
(i) standard offer service; 1
(ii) the Department of General Services’ sale of energy under § 2
7–704.4 of this title; [or] 3
(iii) a community choice aggregator under § 7 –510.3 of this subtitle; 4
OR 5
(IV) A RESIDENTIAL ELECTR ICITY SUPPLIER’S SALE OF GREEN 6
POWER UNDER § 7–707 OF THIS TITLE. 7
(2) [A] SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , A 8
residential electricity supplier: 9
(i) may offer electricity [, other than green power, ] only at a price 10
that does not exceed the trailing 12–month average of the electric company’s standard offer 11
service rate in the electric company’s service territory as of the date of agreement with the 12
customer; 13
(ii) [may offer residential electricity supply only for a term not to 14
exceed 12 months at a time; 15
(iii)] may[, for electricity supply other than green power, ] 16
automatically renew the term only if the electricity supplier provides notice to the customer 17
90 days before and 30 days before renewal; 18
[(iv) may offer green power that meets the requirements of § 7–707 of 19
this title, but may not automatically renew the term with the customer; 20
(v)] (III) subject to paragraph (3) of this subsection, may not offer a 21
variable rate other than a rate that adjusts for seasonal variation not more than twice in a 22
single year; and 23
[(vi)] (IV) may not pay a commission o r other incentive –based 24
compensation to an energy salesperson for enrolling customers. 25
(3) [Paragraph (2)(v) of ] NOTHING IN this subsection [does not] SHALL 26
prohibit the offer and use of: 27
(I) time–of–use rates: 28
1. FOR A TERM GREATER THAN 12 MONTHS AT A TIME; 29
2. that establish different rates for periods within a single 30
4 HOUSE BILL 1494
day; OR 1
3. THAT INCLUDE AN ON–PEAK RATE THAT EXCEEDS THE 2
TRAILING 12–MONTH AVERAGE OF THE ELECTRIC COMPANY ’S STANDARD OFFER 3
SERVICE RATE AS OF THE DATE OF AGREEMENT WITH THE CUSTOMER; 4
(II) PRODUCTS THAT COMBINE ELECTRICITY SUPPLY WITH 5
EMISSIONS–FREE ENERGY CERTIFICATES, INCLUDING THOSE: 6
1. THAT ARE PART OF A CONTRACT FOR A TERM 7
GREATER THAN 12 MONTHS AT A TIME; 8
2. OFFERED AT A PRICE PER KILOWATT–HOUR FOR THE 9
ELECTRICITY SUPPLY AND CERTIFICATES THAT, WHEN COMBINED, EXCEEDS THE 10
TRAILING 12–MONTH AVERAGE OF THE ELECTRIC COMPANY ’S STANDARD OFFER 11
SERVICE RATE AS OF THE DATE OF AGREEMENT WITH THE CUSTOMER; OR 12
3. OFFERED AT A VARIABLE RATE THAT MAY ADJUST 13
MONTHLY; OR 14
(III) PRODUCTS THAT COMBINE ELECTRICITY SUPPLY WITH ONE 15
OR MORE DISTRIBUTED ENERGY RESOURCES THAT PROVIDE ELECTRI C 16
DISTRIBUTION SUPPORT SERVICES, INCLUDING THOSE: 17
1. THAT ARE PART OF A C ONTRACT FOR A TERM 18
GREATER THAN 12 MONTHS AT A TIME; 19
2. OFFERED AT A PRICE PER KILOWATT–HOUR, FOR THE 20
PRODUCT ONLY , THAT EXCEEDS THE TRA ILING 12–MONTH AVERAGE OF THE 21
ELECTRIC COMPANY ’S STANDARD OFFER SER VICE RATE AS OF THE DATE OF 22
AGREEMENT WITH THE CUSTOMER; OR 23
3. OFFERED AT A VARIABLE RATE THAT M AY ADJUST 24
MONTHLY. 25
(4) (I) [A] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 26
PARAGRAPH, A residential electricity supplier may not sell to an electric company, and an 27
electric company may not purchase from the electricity supplier, accounts receivable. 28
(II) A RESIDENTIAL ELECTRICITY SUPPLIER MAY SEL L TO AN 29
ELECTRIC COMPANY , AND AN ELECTRIC COMP ANY MAY PURCHASE FRO M THE 30
ELECTRICITY SUPPLIER, ACCOUNTS RECEIVABLE FOR THE PRODUCTS SPECIFIED IN 31
PARAGRAPH (3) OF THIS SUBSECTION. 32
HOUSE BILL 1494 5
(J) NOTWITHSTANDING THE DEFINITION OF “ELECTRIC DISTRIBUTIO N 1
SYSTEM SUPPORT SERVICES” IN § 7–1001 OF THIS TITLE , A DISTRIBUTED ENERGY 2
RESOURCE AGGREGATOR THAT IS PROVIDING ELECTRIC D ISTRIBUTION SYSTEM 3
SUPPORT SERVICES AND IS PARTICIPATING IN A DEMAND RESPONSE PROGRAM MAY 4
NOT BE LIMITED TO ACTING AT THE DIRECTION OF AN ELECTRIC COMPANY. 5
(K) ON OR BEFORE JANUARY 1, 2027, THE COMMISSION SHALL ADOP T 6
REGULATIONS THAT: 7
(1) REQUIRE ELECTRIC COMPANIES T O IMPLEMENT AND USE 8
CONSOLIDATED BILLING: 9
(I) ON OR BEFORE JULY 1, 2027; AND 10
(II) THAT INCLUDE S PROTOCOLS FOR THE PU RCHASE OF 11
ACCOUNTS RECEIVABLE FOR PRODUCTS THAT COMBIN E ELECTRICITY WITH 12
DISTRIBUTED ENERGY R ESOURCES THAT PROVID E ELECTRIC DISTRIBUT ION 13
SUPPORT SERVICES IN ACCORDAN CE WITH SUBSECTION (D)(3)(III) OF THIS 14
SECTION; 15
(2) ESTABLISH CYBERSECUR ITY STANDARDS AND IN FORMATION 16
EXCHANGE PROTOCOLS N ECESSARY TO ENABLE E LECTRICITY SUPPLIERS AND 17
DISTRIBUTED ENERGY R ESOURCE AGGREGATORS TO PROVIDE PRODUCTS THAT 18
COMBINE ELECTRICITY W ITH ONE OR MORE DISTRIBUTED ENERGY R ESOURCES 19
THAT PROVIDE ELECTRIC DISTRIBUTION SUPPORT SERVICES IN ACCORDANCE WITH 20
SUBSECTION (D)(3)(III) OF THIS SECTION; 21
(3) REQUIRE ELECTRIC COMPANIES TO IMPLEMENT AND MAINTA IN 22
NONDISCRIMINATORY AND EXPEDITED PROCEDURES FOR THE I NTERCONNECTION 23
OF DISTRIBUTED ENERG Y RESOURCES TO FACIL ITATE PRODUCTS THAT COMBINE 24
ELECTRICITY WITH ONE OR MORE DISTRIBUTED ENERGY RESOURCES THA T 25
PROVIDE ELECTRIC DIS TRIBUTION SUPPORT SE RVICES WITHOUT GIVING ANY 26
PREFERENCE TO DISTRIBUTED ENERGY RESOURCES PARTICIPATING IN ANY PILOT 27
PROGRAM OR TARIFF UN DER SUBTITLE 10 OF THIS TITLE OR ANY OTHER 28
SUCCESSOR PROGRAMS OR TARIFFS; AND 29
(4) IMPLEMENT ANY OTHER CHANGES THAT THE COMMISSION 30
DETERMINES NE CESSARY TO ENABLE A COMPETITIVE MARKET F OR PRODUCTS 31
THAT COMBINE ELECTRI CITY WITH ONE OR MORE DISTRIBUTED ENERGY 32
RESOURCES THAT PROVIDE ELECTRIC DISTRIBUTION SUPPORT SERVICES. 33
7–604.2. 34
(a) (1) In this section [, “default ] THE FOLLOWING WORDS HAVE THE 35
6 HOUSE BILL 1494
MEANINGS INDICATED. 1
(2) “DEFAULT gas commodity service” means the supply of retail gas 2
commodity service by a customer’s gas company. 3
(3) “EMISSIONS–REDUCING PRODUCT OR SERVICE” INCLUDES 4
PRODUCTS AND SERVICES SUPPORTING: 5
(I) ENERGY EFFICIENCY , INCLUDING MAINTENANC E AND 6
REPAIR; 7
(II) ANALYTICS–BASED EFFICIENCY MONITORING; AND 8
(III) OTHER ENERGY CONSUMPTION REDUCTION PRODUCTS. 9
(b) (1) This subsection applies to residential gas supply other than default gas 10
commodity service provided by a gas company. 11
(2) [A] SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , A gas 12
supplier that supplies gas to residential retail gas customers: 13
(i) may offer gas service only at a price that does not exceed the 14
trailing 12–month average of the gas company’s default gas commodity service in the gas 15
company’s service territory as of the date of the agreement with the customer; 16
(ii) [may offer residential gas supply only for a term not to exceed 12 17
months at a time and ] may automatically renew [the] A term only if the gas supplier 18
provides notice to the customer 90 days before and 30 days before renewal; 19
(iii) [subject to paragraph (3) of this subsection, ] may not offer a 20
variable rate other than a rate that adjusts for seasonal variation not more than twice in a 21
single year; and 22
(iv) may not pay a commission or other incentive –based 23
compensation to an energy salesperson for enrolling customers. 24
(3) [Paragraph (2)(iii) of] NOTHING IN this subsection [does not] SHALL 25
prohibit the offer and use of: 26
(I) rates that differ based on the total number of therms used by a 27
customer in any billing period, INCLUDING THOSE: 28
1. THAT ARE PART OF A C ONTRACT FOR A TERM 29
GREATER THAN 12 MONTHS AT A TIME; OR 30
HOUSE BILL 1494 7
2. THAT INCLUDE A THRES HOLD NUMBER OF THERM S 1
USED BY THE CUSTOMER , BEYOND WHICH THE PRICE MAY EXCEED THE TRAILING 2
12–MONTH AVERAGE OF THE GAS COMPANY’S DEFAULT GAS COMMOD ITY SERVICE 3
IN THE GAS COMPANY’S SERVICE TERRITORY AS OF THE DATE OF TH E AGREEMENT 4
WITH THE CUSTOMER; OR 5
(II) PRODUCTS THAT COMBIN E NATURAL GAS WITH AN 6
EMISSIONS–REDUCING PRODUCT OR SERVICE, INCLUDING THOSE: 7
1. THAT ARE PART OF A C ONTRACT FOR A TERM 8
GREATER THAN 12 MONTHS AT A TIME; OR 9
2. OFFERED AT A PRICE PER THERM THAT EXCEEDS THE 10
TRAILING 12–MONTH AVERAGE OF THE GAS COMPANY’S DEFAULT GAS COMMODITY 11
SERVICE IN THE GAS C OMPANY’S SERVICE TERRITORY AS OF THE DATE OF TH E 12
AGREEMENT WITH THE CUSTOMER. 13
(4) (I) [A] EXCEPT AS PROVIDED UN DER SUBPARAGRAPH (II) OF 14
THIS PARAGRAPH, A gas supplier that supplies gas to residential retail gas customers may 15
not sell to a gas company, and a gas company may not purchase from the gas supplier, 16
accounts receivable. 17
(II) A GAS SUPPLIER MAY SELL TO A GAS COMPANY, AND A GAS 18
COMPANY MAY PURCHASE FROM THE GAS SUPPLIE R, ACCOUNTS RECEIVABLE FOR 19
PRODUCTS UNDER PARAGRAPH (3) OF THIS SUBSECTION. 20
7–707. 21
(a) (1) In this section[, “green power”] THE FOLLOWING WORDS HAVE THE 22
MEANINGS INDICATED. 23
(2) “EMISSIONS–FREE ENERGY ” MEANS ELECTRIC POWER OUTPUT 24
FROM A GENERATING FA CILITY THAT DOES NOT DIRECTLY PRODUCE ANY 25
GREENHOUSE GAS EMISSIONS. 26
(3) “EMISSIONS–FREE ENERGY CERTIFICATE” MEANS A CERTIFICATE 27
OBTAINED THROUGH THE PJM ENVIRONMENTAL INFORMATION SERVICES, INC., 28
GENERATION ATTRIBUTE TRACKING SYSTEM FROM A GENERATING FACILITY THAT 29
PRODUCES EMISSIONS–FREE ENERGY. 30
(4) “EMISSIONS–REDUCING PRODUCT OR SERVICE” INCLUDES 31
PRODUCTS AND SERVICES SUPPORTING: 32
(I) HOME ELECTRIFICATION; 33
8 HOUSE BILL 1494
(II) ENERGY EF FICIENCY, INCLUDING MAINTENANC E AND 1
REPAIR; 2
(III) ANALYTICS–BASED EFFICIENCY MONITORING; AND 3
(IV) OTHER ENERGY CONSUMPTION REDUCTION PRODUCTS. 4
(5) “GREEN POWER” means energy sources or renewable energy credits 5
that are marketed as clean, green, eco–friendly, environmentally friendly or responsible, 6
carbon–free, renewable, 100% renewable, 100% wind, 100% hydro, 100% solar, 100% 7
emission–free, or similar claims. 8
(b) This section does not apply to: 9
(1) the Department of General Services when th e Department of General 10
Services sells energy under § 7–704.4 of this subtitle; 11
(2) a community choice aggregator under § 7–510.3 of this title; [or] 12
(3) an electricity supplier when supplying electricity to commercial retail 13
electric customers; OR 14
(4) GREEN POWER PRODUCTS: 15
(I) WITH TIME –OF–USE RATES THAT ESTAB LISH DIFFERENT 16
RATES FOR PERIODS WITHIN A SINGLE DAY; 17
(II) COMBINED WITH EMISSIONS–FREE ENERGY CERTIFICATES; 18
OR 19
(III) THAT COMBINE ELECTRI CITY WITH AN 20
EMISSIONS–REDUCING PRODUCT OR SERVICE. 21
7–1001. 22
(a) In this subtitle the following words have the meanings indicated. 23
(d) “Distributed energy resource” means an energy resource located on a 24
customer’s premises that: 25
(1) produces or stores electricity; or 26
(2) modifies the t iming or amount of the customer’s electricity 27
consumption. 28
HOUSE BILL 1494 9
(e) (1) “Electric distribution system support services” means the dispatch and 1
control of a distributed energy resource to provide services that contribute to the efficient 2
and reliable operation of the electric distribution system by: 3
(i) an electric company; or 4
(ii) an aggregator acting at the direction of an electric company. 5
(2) “Electric distribution system support services” includes: 6
(i) local or system peak demand reduction; 7
(ii) demand response; 8
(iii) the avoidance or deferral of a transmission or distribution 9
upgrade or capacity expansion; and 10
(iv) facilitating hosting capacity to accommodate additional 11
distributed energy resources. 12
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 13
October 1, 2026. 14