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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0834*
SENATE BILL 834
M5, C5 6lr3294
By: Senators Hershey and Ready
Introduced and read first time: February 6, 2026
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Energy Efficiency and Conservation Programs, Services, and Plans – 2
Moratorium 3
FOR the purpose of prohibiting a unit of State government from implementing or enforcing, 4
after a certain date, certain provisions of law relating to energy efficiency and 5
conservation programs, services, and plans that support certain greenhouse gas 6
emissions reduction goals and targets ; requiring the Public Service Commission to 7
continue certain rate –making policies until certain electric companies and gas 8
companies have recovered certain costs; requiring the Commission to report to the 9
General Assembly once a certain event has occurred and include in the report a 10
certain recommendation ; and generally relating to energy ef ficiency and 11
conservation programs, services, and plans. 12
BY repealing and reenacting, with amendments, 13
Article – Public Utilities 14
Section 7–222(d) 15
Annotated Code of Maryland 16
(2025 Replacement Volume and 2025 Supplement) 17
BY adding to 18
Article – Public Utilities 19
Section 7–226.1 20
Annotated Code of Maryland 21
(2025 Replacement Volume and 2025 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Public Utilities 25
7–222. 26
2 SENATE BILL 834
(d) The Commission shall encourage and promote the efficient use and 1
conservation of energy in support of the greenhouse gas emissions reduction goals and 2
targets required under Title 2, Subtitle 12 of the Environment Article, established by the 3
Commission under § 7–223(b) of this subtitle, and specified in § 7–224(a)(2) of this subtitle 4
by: 5
(1) requiring each electric company and gas company to establish any 6
program or service that the Commission determines to be appropriate and cost–effective; 7
(2) adopting rate–making policies that provide, through a surcharge line 8
item on customer bills: 9
(i) full cost recovery of reasonably incurred costs for programs and 10
services established under item (1) of this subsection, including full recovery on a current 11
basis on or before January 1, 2028; 12
(ii) on or before December 31, 2032, the elimination of any unpaid 13
costs and unamortized costs that: 14
1. A. existed on December 31, 2024; or 15
B. were incurred before [January 1, 2028 ] JULY 1, 2026; 16
and 17
2. were accrued for the purpose of achieving statutory 18
targets for annual incremental gross energy savings; 19
(iii) compensation for any unpaid costs and unamortized costs under 20
item (ii) of this item at not more than each electric company’s and each gas c ompany’s 21
average cost of outstanding debt; and 22
(iv) reasonable financial performance incentives and penalties for 23
investor–owned electric companies and gas companies, as appropriate; and 24
(3) ensuring that adoption of electric customer choice under S ubtitle 5 of 25
this title and gas customer choice under Subtitle 6 of this title does not adversely impact 26
these goals and targets. 27
7–226.1. 28
(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, BEGINNING 29
ON JULY 1, 2026, A UNIT OF STATE GOVERNMENT MAY NOT IMPLEMENT OR 30
ENFORCE THE PROVISIONS OF §§ 7–222 THROUGH 7–226 OF THIS SUBTITLE. 31
SENATE BILL 834 3
(B) THE COMMISSION SHALL CONT INUE RATE –MAKING POLICIES IN 1
ACCORDANCE WITH § 7–222(D)(2)(II) OF THIS SUBTITLE UNTIL EACH ELECTRIC 2
COMPANY AND GAS COMP ANY HAS RECOVERED ALL UNPAID COSTS AND 3
UNAMORTIZED COSTS THAT THE ELECTRIC COMPANY OR GAS COMPANY INCURRED 4
ON OR BEFORE JULY 1, 2026, FOR THE DEVELOPMENT AND IMPLEMENTATION OF 5
PROGRAMS REQUIRED UNDER § 7–222(D)(2)(I) OF THIS SUBTITLE THAT EXISTED ON 6
OR BEFORE JULY 1, 2026. 7
SECTION 2. AND BE IT FURTHER ENACTED, That: 8
(a) The Public Service Commission shall report to the General Assembly, in 9
accordance with § 2–1257 of the State Government Article, within 3 months after all electric 10
companies and gas companies subject to the provisions of Title 7, Subtitle 2, Part II of the 11
Public Utilities Article have recovered all unpaid costs and unamortized costs in accordance 12
§ 7–226.1(b) of the Public Utilities Article, as enacted by Section 1 of this Act. 13
(b) The rep ort submitted under subsection (a) of this section shall include a 14
recommendation on whether the moratorium established in § 7 –226.1(a) of the Public 15
Utilities Article, as enacted by Section 1 of this Act, should be rescinded. 16
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 17
1, 2026. 18