Residential Retail Customer and Retail Electricity Suppliers - Definition and Alterations

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0749*

SENATE BILL 749
C5 6lr1875

By: Senators Gile, Beidle, Hettleman, and Watson
Introduced and read first time: February 6, 2026
Assigned to: Education, Energy, and the Environment

A BILL ENTITLED

AN ACT concerning 1

Residential Retail Customer and Retail Electricity Suppliers – Definition and 2
Alterations 3

FOR the purpose of defining the term “residential retail customer” for the purchase of gas 4
or electricity; altering the requirements for residential electricity suppliers to use a 5
certain calculation of an electric company’s standard offer service rate in setting the 6
price for electricity under certain circumstances ; authorizing residential electricity 7
suppliers to use consolidated billing; altering the requirements of the Public Service 8
Commission in approving the price of electricity marketed as green power ; and 9
generally relating to electricity and gas. 10

BY repealing and reenacting, without amendments, 11
Article – Public Utilities 12
Section 1–101(a) and 7–707(a) through (c) 13
Annotated Code of Maryland 14
(2025 Replacement Volume and 2025 Supplement) 15

BY adding to 16
Article – Public Utilities 17
Section 1–101(dd–1) 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 7–510(d) and 7–707(d) 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 SENATE BILL 749

Article – Public Utilities 1

1–101. 2

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

(DD–1) (1) “RESIDENTIAL RETAIL CUSTOMER” MEANS A RETAIL 4
ELECTRIC OR RETAIL GAS CUSTOMER THAT PURCHASES ELECTRICITY OR GAS FOR 5
USE AT A DOMICILE , INCLUDING ANY INDIVI DUAL THAT ENTERS INT O A DIRECT 6
CONTRACT WITH AN ELECTRICITY SUPPLIER OR GAS SUPPLIER FOR THE PROVISION 7
OF ELECTRICITY OR GAS FOR USE AT A DOMICILE. 8

(2) “RESIDENTIAL RETAIL CUSTOMER” DOES NOT INCLUDE A RETAIL 9
CUSTOMER WHOSE ACCOU NT SERVES THE PRIMAR Y BUSINESS OPERATION S, 10
ANCILLARY BUSINESS F UNCTIONS, OR COMMERCIAL ACTIVI TIES OF A BUSINESS 11
ENTITY OR OTHER NONR ESIDENTIAL ORGANIZAT ION BUT IS CLASSIFIED , 12
DESIGNATED, OR OTHERWISE CODED A S RESIDENTIAL BY THE ELECTRIC OR GAS 13
COMPANY. 14

7–510. 15

(d) (1) This subsection applies to residential electricity supply other than 16
supply offered through: 17

(i) standard offer service; 18

(ii) the Dep artment of General Services’ sale of energy under § 19
7–704.4 of this title; or 20

(iii) a community choice aggregator under § 7–510.3 of this subtitle. 21

(2) A residential electricity supplier: 22

(i) may offer electricity, other than green power, only at a price that 23
does not exceed the [trailing 12–month average of the ] electric company’s standard offer 24
service rate in the electric company’s service territory as of the date of agreement with the 25
customer; 26

(ii) may offer residential electricity supply only for a term not to 27
exceed 12 months at a time; 28

(iii) may, for electricity supply other than green power, automatically 29
renew the term only if the electricity supplier provides notice to the customer 90 days before 30
and 30 days before renewal; 31

SENATE BILL 749 3

(iv) may offer green power that meets the requirements of § 7–707 of 1
this title, but may not automatically renew the term with the customer; 2

(v) subject to paragraph (3) of this subsection, may not offer a 3
variable rate other than a rate that adjusts for seasonal variation not more than twice in a 4
single year; [and] 5

(vi) may not pay a commission or other incentive –based 6
compensation to an energy salesperson for enrolling customers; AND 7

(VII) MAY USE CONSOLIDATED BILLING. 8

(3) Paragraph (2)(v) of this subsection does not prohibit the offer and use 9
of time–of–use rates that establish different rates for periods within a single day. 10

(4) A residential electricity supplier may not sell to an electric company, 11
and an electric company may no t purchase from the electricity supplier, accounts 12
receivable. 13

7–707. 14

(a) In this section, “green power” means energy sources or renewable energy 15
credits that are marketed as clean, green, eco –friendly, environmentally friendly or 16
responsible, carbon–free, renewable, 100% renewable, 100% wind, 100% hydro, 100% solar, 17
100% emission–free, or similar claims. 18

(b) This section does not apply to: 19

(1) the Department of General Services when the Department of General 20
Services sells energy under § 7–704.4 of this subtitle; 21

(2) a community choice aggregator under § 7–510.3 of this title; or 22

(3) an electricity supplier when supplying electricity to commercial retail 23
electric customers. 24

(c) An electricity supplier that supplies electricity to residential retail electric 25
customers may not market electricity as green power unless: 26

(1) the percentage of the electricity being offered, or the equivalent number 27
of renewable energy credits associated with the electricity being marketed as green power, 28
that is eligible for inclusion in meeting the renewable energy portfolio standard equals or 29
exceeds the greater of: 30

(i) 51%; or 31

4 SENATE BILL 749

(ii) 1% higher than the renewable energy portfolio standard for the 1
year the electricity is provided to the customer; 2

(2) the Commission approves the price of the electricity being marketed as 3
green power in accordance with subsection (d) of this section; and 4

(3) the electricity supplier submits an application to the Commission that: 5

(i) describes the electricity being marketed as green power, 6
including the green power source and percentage of the electricity that is green power; 7

(ii) describes how the green power complies with State law and 8
regulations; and 9

(iii) includes any other information the Commission con siders 10
necessary. 11

(d) (1) The price approved by the Commission under subsection (c)(2) of this 12
section shall be determined through: 13

(i) a proceeding held in accordance with paragraph (2) of this 14
subsection; or 15

(ii) a proceeding held in accordance with paragraph (3) of this 16
subsection. 17

(2) (i) Each year the Commission shall hold a proceeding to set a price 18
per megawatt–hour for electricity marketed as green power under this section that may 19
not be exceeded by an electricity supplier except as pr ovided in paragraph (3) of this 20
subsection. 21

(ii) Subject to paragraph (4) of this subsection, the price set by the 22
Commission under subparagraph (i) of this paragraph may: 23

1. exceed the maximum price per megawatt –hour that is 24
authorized under § 7–510(d)(2)(i) of this title; and 25

2. differ based on the amount and source of the electricity 26
generation. 27

(iii) During a proceeding held under subparagraph (i) of this 28
paragraph, the Commission: 29

1. shall consider: 30

A. the price of the energy purchased, including the total cost 31
of the renewable energy credits; 32
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B. the amount of electricity that is eligible for inclusion in 1
meeting the renewable energy portfolio standard; AND 2

C. [the state in which the electricity was generated; and 3

D.] applicable market data; and 4

2. may consider whether the purchase of renewable energy 5
credits was bundled with a power purchase agreement from the energy sources associated 6
with the credit. 7

(3) (i) On request by an electricity supplier, the Commission shall hold 8
a proceeding to set a price per megawatt –hour for electricity marketed as green power for 9
that electricity supplier. 10

(ii) Subject to paragraph (4) of this subsection, at a proceeding held 11
under this paragraph the Commission may se t a price per megawatt –hour that is higher 12
than the price determined in the proceeding held under paragraph (2) of this subsection for 13
an electricity supplier if: 14

1. the electricity supplier demonstrates to the Commission’s 15
satisfaction, based on an i ndependent third –party audit, that the actual cost to the 16
electricity supplier for the generation or supply of electricity exceeds that of the price 17
determined through the proceeding held in accordance with paragraph (2) of this 18
subsection; 19

2. the increased price reflects only the cost of the electricity 20
marketed as green power and is not associated with any of the electricity supplier’s other 21
costs; and 22

3. the electricity supplier demonstrates to the Commission’s 23
satisfaction that the electricity supplier has a significant long –term investment in 24
renewable energy that meets the renewable energy portfolio standard under § 7–703 of this 25
subtitle. 26

(iii) During a proceeding held under this paragraph, the Commission 27
shall consider: 28

1. whether the purchase of renewable energy credits was 29
bundled with a power purchase agreement from the energy sources associated with the 30
credit; 31

2. the price of the energy purchased, including the total cost 32
of the renewable energy credits or power purchase agreements; 33

6 SENATE BILL 749

3. the amount of electricity that is eligible for inclusion in 1
meeting the renewable energy portfolio standard; AND 2

4. [the state in which the electricity was generated; and 3

5.] applicable market data. 4

(4) (i) A price approved by the Commission under this subsection may 5
not exceed 150% of the maximum price per megawatt –hour that is authorized under § 6
7–510(d)(2)(i) of this title unless the Commission determines that the actual cost of the 7
green power exceeds that amount. 8

(ii) Within 120 days after approving a price for green power that 9
exceeds 150% of the maximum price per megawatt –hour that is authorized under § 10
7–510(d)(2)(i) of this title, and annually for as long as the price exceeds that amount, the 11
Commission shall submit a report to the General Assembly, in accordance with § 2–1257 of 12
the State Government Article, that: 13

1. demonstrates that the approved price represents only the 14
actual price of the green power; and 15

2. includes the Commission ’s order authorizing the price of 16
the green power. 17

(iii) If the Commission has approved for 3 consecutive years a price 18
for green power that exceeds 150% of the maximum price per megawatt –hour that is 19
authorized under § 7–510(d)(2)(i) of this title, the Commission shall include in the annual 20
report required under subparagraph (ii) of this paragraph: 21

1. information on market conditions that necessitate the 22
approved price of the green power that exceeds 150% of the maximum price per 23
megawatt–hour that is authorized under § 7–510(d)(2)(i) of this title; and 24

2. a recommendation of whether to increase the limitation on 25
the maximum price of green power above which the Commission is required to make a 26
determination under this paragraph. 27

(5) The Commission: 28

(i) shall annually review a price approved under paragraph (3) of 29
this subsection; and 30

(ii) may, on its own initiative, or on petition by the Office of People’s 31
Counsel, require an electricity supplier offering green power under a price established 32
under paragraph (3) of this subsection to demonstrate that the price continues to meet the 33
requirements of paragraph (3) of this subsection. 34

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