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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0966*
SENATE BILL 966
C5, M5 EMERGENCY BILL 6lr3673
CF HB 1476
By: Senator Feldman
Introduced and read first time: February 13, 2026
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
Public Service Commission – Net Energy Metering – Successor Program 2
FOR the purpose of altering the conditions under which a certain standard contract or tariff 3
for net energy metering will no longer be available; requi ring the Public Service 4
Commission to develop and implement a successor program to the existing net 5
energy metering program; establishing the conditions under which the successor 6
program will no longer be available; requiring the Commission to conduct a ce rtain 7
proceeding on the development and implementation of a certain successor program; 8
making certain sections of this Act contingent on the net energy metered capacity 9
exceeding a certain amount or on the Commission submitting a certain report on the 10
successor program; and generally relating to net energy metering. 11
BY repealing and reenacting, without amendments, 12
Article – Public Utilities 13
Section 7–306(a)(1), (4), and (7) 14
Annotated Code of Maryland 15
(2025 Replacement Volume and 2025 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Public Utilities 18
Section 7–306(d) 19
Annotated Code of Maryland 20
(2025 Replacement Volume and 2025 Supplement) 21
BY adding to 22
Article – Public Utilities 23
Section 7–306.4 24
Annotated Code of Maryland 25
(2025 Replacement Volume and 2025 Supplement) 26
2 SENATE BILL 966
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Public Utilities 3
7–306. 4
(a) (1) In this section the following words have the meanings indicated. 5
(4) “Eligible customer –generator” means a customer that owns and 6
operates, leases and operates, or contracts with a third party that owns and operates a 7
biomass, micro combined heat and power, solar, fuel cell, wind, or closed conduit hydro 8
electric generating facility that: 9
(i) is located on the customer’s premises or contiguous property; 10
(ii) is interconnected and operated in parallel with an electric 11
company’s transmission and distribution facilities; and 12
(iii) is intended primarily to offset all or part of the customer’s own 13
electricity requirements. 14
(7) “Net energy metering” means measurement of the difference between 15
the electricity that is supplied by an electric company and the electricity that is generated 16
by an eligible custome r–generator and fed back to the electric grid over the eligible 17
customer–generator’s billing period. 18
(d) The Commission shall require electric utilities to develop a standard contract 19
or tariff for net energy metering and make it available to eligible customer–generators on 20
a first–come, first–served basis until: 21
(1) the rated generating capacity owned and operated by eligible 22
customer–generators in the State reaches 3,000 megawatts; OR 23
(2) THE COMMISSION IMPLEMENTS A SUCCESSOR PROGRAM UNDER § 24
7–306.4 OF THIS SUBTITLE. 25
7–306.4. 26
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 27
INDICATED. 28
(2) “ELIGIBLE CUSTOMER–GENERATOR” HAS THE MEANING STAT ED 29
IN § 7–306 OF THIS SUBTITLE. 30
SENATE BILL 966 3
(3) “NET ENERGY METERING” HAS THE MEANING STATED IN § 7–306 1
OF THIS SUBTITLE. 2
(B) THE COMMISSION SHALL DEVELOP AND IMPLEMENT, AS A SUCCESSOR 3
PROGRAM TO THE NET E NERGY METERING PROGR AM UNDER § 7–306 OF THIS 4
SUBTITLE, A NET ENERGY METERING PROGRAM THAT: 5
(1) INCENTIVIZES THE DEV ELOPMENT OF DISTRIBU TED 6
GENERATION; 7
(2) MINIMIZES RATEPAYER COSTS IN THE SHORT T ERM AND IN THE 8
LONG TERM; AND 9
(3) BALANCES, ON A STATEWIDE BASIS AND ACROSS TECHNOLOGIES 10
AND INDUSTRY SECTORS PARTICIPATING IN NET ENERGY METERING: 11
(I) FAIR COMPENSATION FOR ENERGY EXPORTS; AND 12
(II) THE BENEFITS OF AN E LIGIBLE CUSTOMER GEN ERATOR’S 13
OR FACILITY’S REDUCED LOAD ON THE ELECTRIC GRID AGAINST: 14
1. THE NEEDS OF THE GRID; 15
2. RATEPAYER COSTS AND BENEFITS; AND 16
3. IMPLICATIONS OF THE REDUCED LOAD ON ENER GY 17
EQUITY, INCLUDING ANY DISPARITIES IN THE AMOUNT PAID F OR GRID 18
MAINTENANCE BY ELIGI BLE CUSTOMER –GENERATORS AND DISTR IBUTED 19
GENERATION OWNERS IN COMPARISON TO OTHER RETAIL CUSTOMERS. 20
(C) THE PROGRAM IMPLEMENT ED BY THE COMMISSION UNDER 21
SUBSECTION (B) OF THIS SECTION SHA LL BE AVAILABLE UNTI L THE COMBINED 22
TOTAL RATED GENERATI NG CAPACITY OWNED AN D OPERATED UNDER THE NET 23
ENERGY METERING PROG RAM UNDER § 7–306 OF THIS SUBTITLE AND THE NET 24
ENERGY METERING PROGRAM IMPLEMENTED UNDER THIS SECTION REACHES 6,000 25
MEGAWATTS. 26
SECTION 2. AND BE IT FURTHER ENACTED, That: 27
(a) (1) In this section the following words have the meanings indicated. 28
(2) “Eligible customer–generator” has the meaning stated in § 7–306 of the 29
Public Utilities Article. 30
4 SENATE BILL 966
(3) “Net energy metering” has the meaning stated in § 7–306 of the Public 1
Utilities Article. 2
(b) (1) The Public Service Commission shall conduct a proceeding exploring 3
the development and implementation of a successor program to the net energy metering 4
program under § 7–306 of the Public Utilities Article. 5
(2) In conducting the proceeding, the Public Service Commission shall 6
accept input from utility companies, renewable energy industry experts, consumer 7
advocates, and other stakeholders. 8
(c) On or before December 15, 2026, the Public Service Commission shall submit 9
a report on the proceeding held under subsection (b) of this section to the Governor and, in 10
accordance with § 2–1257 of the State Government Article, the General Assembly. 11
(d) The report shall include: 12
(1) recommendations for a successor program to the net energy metering 13
program under § 7–306 of the Public Utilities Article that: 14
(i) incentivizes the development of distributed generation; 15
(ii) minimizes ratepayer costs in the short term and in the long term; 16
and 17
(iii) balances, on a statewide basis and across technologies and 18
industry sectors participating in net energy metering: 19
1. fair compensation for energy exports; and 20
2. the benefits of an eligible customer –generator’s or 21
facility’s reduced load on the electric grid against: 22
A. the needs of the grid; 23
B. ratepayer costs and benefits; and 24
C. implications of the reduced load on energy equity, 25
including any disparities in the amount paid for grid maintenance by eligible 26
customer–generator and distributed generation owners in comparison to other retail 27
customers; 28
(2) recommendations for any legislative changes necessary to implement 29
the successor program; and 30
(3) descriptions of how existing eligible customer –generators would be 31
treated under the successor program, including: 32
SENATE BILL 966 5
(i) community solar projects and subscribers under § 7–306.2 of the 1
Public Utilities Article; and 2
(ii) aggregated net energy metering projects and customers under § 3
7–306.3 of the Public Utilities Article. 4
SECTION 3. AND BE IT FURTHER ENACTED, That: 5
(a) Section 1 of this Act shall take effect contingent on the earlier of the date that: 6
(1) the Public Service Commission submits to the Governor and the 7
General Assembly the report required und er Section 2 of this Act that includes 8
recommendations for the implementation of a successor program to the net energy metering 9
program under § 7–306 of the Public Utilities Article; or 10
(2) total rated generating capacity owned and operated in the State under 11
the existing net energy metering program under § 7 –306 of the Public Utilities Article 12
reaches 3,000 megawatts. 13
(b) Within 5 days after the contingency in subsection (a) of this section is met, the 14
Public Service Commission shall submit written notice to the Department of Legislative 15
Services. 16
(c) If written notice that the contingency has been met is received by the 17
Department of Legislative Services on or before October 1, 2031, Section 1 of this Act shall 18
take effect on the date the written notice is received by the Department of Legislative 19
Services. 20
(d) If written notice that the contingency has been met is not received by the 21
Department of Legislative Services on or before October 1, 2031, Section 1 of this Act, with 22
no further action required by the General Assembly, shall be null and void. 23
SECTION 4. AND BE IT FURTHER ENACTED, That, except as provided by Section 24
3 of this Act, this Act is an emergency measure, is necessary for the immediate preservation 25
of the public health or safety, has been passed by a yea and nay vote supported by 26
three–fifths of all the members elected to each of the two Houses of the General Assembly, 27
and shall take effect from the date it is enacted. 28