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Maryland (US-MD)

Market Type: Deregulated (Retail Choice)
SSS Relevance: ⭐⭐⭐ High
Grid Carbon Intensity: ~328 gCO₂/kWh

SSS Factors: significant nuclear capacity, hydroelectric resources

1. Overview​

Maryland operates a fully deregulated electricity market where consumers can choose their electricity supplier, though local utilities maintain the delivery infrastructure 1. The state is a significant net importer, generating only about 60% of the electricity it consumes and relying on imports from the PJM Interconnection regional grid for the remainder 2.

In 2023, renewable energy sources accounted for 13% of Maryland's total in-state electricity generation. Solar is the state's largest renewable source, contributing nearly half (approx. 6% of total generation), followed by hydroelectric power (approx. 5%) and a combination of wind and biomass (2%) 3. Additionally, the Calvert Cliffs Nuclear Power Plant provides approximately 35% of the state's total net generation, serving as a major carbon-free source 2.

The state has established aggressive clean energy goals, including a statutory target for 50% of electricity retail sales to come from renewable sources by 2030 and a goal for 100% clean energy by 2035. Maryland aims to achieve net-zero greenhouse gas emissions by 2045 4. To support these targets, the state is mandated to procure at least 1,200 megawatts of offshore wind capacity by 2030 2.

Despite progress in emissions reductions—a 36% decrease between 2005 and 2022—the market faces challenges heading into 2025 and 2026. These include rising consumer bills driven by distribution investments and fuel costs, an 800% increase in PJM capacity auction prices, and the scheduled retirement of major coal-fired power plants 2. The grid carbon intensity for the 2024/2025 period is approximately 328 gCO2eq/kWh 5.

2. Market Structure​

Wholesale Market and Grid Operations Maryland's wholesale electricity market is operated by the PJM Interconnection (PJM), which functions as both an Independent System Operator (ISO) and a Regional Transmission Organization (RTO) 6. PJM coordinates the movement of wholesale electricity across 13 states and the District of Columbia, ensuring grid reliability and operating bid-based wholesale markets to determine economic dispatch 7. While PJM manages the transmission grid, the Maryland Public Service Commission (PSC) retains regulatory authority over public utilities and retail transactions within the state 6.

Utility Landscape The state's electric utility landscape consists primarily of investor-owned utilities (IOUs), electric cooperatives, and municipal utilities 8.

  • Investor-Owned Utilities (IOUs): Regulated by the PSC, IOUs serve the majority of the state's population. Major providers include:
    • Baltimore Gas and Electric (BGE): Serving Baltimore City and central counties 8.
    • Potomac Electric Power Company (Pepco): Serving Montgomery and Prince George's Counties 8.
    • Delmarva Power: Serving the Eastern Shore 8.
    • Potomac Edison (FirstEnergy): Serving western and northern parts of the state, including Frederick and Washington Counties 8.
  • Electric Cooperatives: Non-profit organizations serving rural areas, such as Southern Maryland Electric Cooperative (SMECO) and Choptank Electric Cooperative 8.
  • Municipal Utilities: Publicly owned utilities serving specific cities, including Easton Utilities, Hagerstown Municipal Electric Light Plant, and departments in Berlin, Thurmont, and Williamsport 8.

Retail Market and Deregulation Status Maryland transitioned to a deregulated electricity market in 1999 6. However, the retail market underwent significant changes following the passage of Senate Bill 1, which implemented strict price caps and licensing requirements effective January 1, 2025 and July 1, 2025, respectively 9. As of early 2026, the market is described as having "frozen retail choice," with nearly all third-party residential suppliers (including major companies like Constellation, NRG, and Vistra) having withdrawn from the state 9.

Current Regulatory Environment Key provisions of Senate Bill 1 and related PSC orders include:

  • Price Caps: Suppliers cannot charge more than the trailing 12-month average of the utility's Standard Offer Service (SOS) price, though "green" products meeting specific regional standards are exempt 10.
  • Licensing: Energy salespeople must be licensed by the PSC starting July 1, 2025 10.
  • Dual Billing: Per PSC Order No. 91463, utilities no longer buy supplier receivables, resulting in customers receiving two separate bills if they remain with a third-party supplier 10.

Most residential customers previously using third-party suppliers have been transitioned back to their utility's Standard Offer Service (SOS) 10. Proponents of the legislation cite savings of over $220 million for Marylanders, while critics note the loss of options for long-term fixed rates and renewable energy support via the retail market 10.

3. Clean Energy Policy​

Maryland's clean energy policy is defined by the Climate Solutions Now Act of 2022, which mandates statewide net-zero greenhouse gas emissions by 2045, with an interim reduction target of 60% below 2006 levels by 2031 [1]. Complementing this, an executive order issued in 2024 established a goal of 100% clean electricity by 2035 [2].

Renewable Portfolio Standard (RPS) The state's RPS requires electricity suppliers to source 50% of retail sales from renewable energy by 2030, managed by the Maryland Public Service Commission (PSC) [3]. The standard includes specific technology carve-outs within Tier 1 resources:

  • Solar: 14.5% by 2030 [3].
  • Offshore Wind: 1,200 MW by 2030 (with annual obligations set by the PSC) [3].
  • Geothermal: 1.0% by 2028 [3].
  • Large Hydro: Classified as a Tier 2 resource [3].

Suppliers who fail to meet these targets must pay Alternative Compliance Payments (ACPs) into the Strategic Energy Investment Fund (SEIF). For 2026, the ACP rates are set at 4.5 ¢/kWh for solar, 2.475 ¢/kWh for non-solar Tier 1, and 9 ¢/kWh for geothermal [3].

Recent Legislative Updates (2025–2026) Governor Wes Moore signed several acts in 2025 and 2026 to accelerate energy transition and address costs:

  • Next Generation Energy Act (2025): Removes waste-to-energy from Tier 1 eligibility starting Jan 1, 2025, and mandates a 4-to-1 ratio of zero-emissions projects to fossil fuel projects on "fast track" permits. It also targets the installation of 1.75 gigawatts of battery storage [1][3].
  • Renewable Energy Certainty Act (2025): Streamlines permitting for solar and storage while preempting local zoning laws, though it safeguards 95% of "Priority Preservation Areas" (farmland/open space) [1].
  • Lower Bills and Local Power Act (Proposed/2026): ⚠️ Currently under debate, this act seeks to mobilize $200 million for utility rebates and mandates the prioritization of advanced grid technologies to increase capacity without expensive new infrastructure [1].

Infrastructure & Building Standards The state targets 8,500 megawatts of offshore wind by 2031 and 3,000 megawatts of storage by 2033–2034 [2]. Additionally, owners of commercial and multifamily buildings over 35,000 square feet must report direct emissions starting in 2025, with large buildings required to reach net-zero direct emissions by 2040 [1][2].

Progress & Challenges Current reports indicate Maryland is not on track to meet its 2030 renewable or 2031 emissions targets. While nuclear provides ~40% of the state's electricity, renewables account for under 10% of generation. The state also faces challenges regarding federal policy shifts affecting offshore wind and land constraints, as nearly 40% of its energy is imported [2].

4. Utility Landscape​

Maryland's electricity market is structured as a deregulated system where delivery infrastructure and power generation are separated. The delivery service is dominated by four major investor-owned utilities (IOUs), while customers may purchase energy generation from third-party suppliers or default to Standard Offer Service (SOS) providers.

Major Investor-Owned Utilities (IOUs)​

Regulated by the Maryland Public Service Commission (PSC), the following four IOUs serve the vast majority of the state's residents 11:

  • Baltimore Gas and Electric (BGE): A subsidiary of Exelon Corporation and the state's largest utility, serving approximately 1.3 million electric customers in Central Maryland, including Baltimore City and surrounding counties 12.
  • Potomac Electric Power Company (Pepco): An Exelon subsidiary serving roughly 590,000 customers in Montgomery and Prince George's Counties 12.
  • Delmarva Power: Also an Exelon subsidiary, providing service to approximately 210,000 customers on the Eastern Shore 12.
  • Potomac Edison: A subsidiary of FirstEnergy Corp, serving about 270,000 customers in Western Maryland, including Frederick, Washington, Allegany, and Garrett Counties 12.

Cooperatives and Municipal Utilities​

Non-IOU providers serve specific regional pockets, often focusing on local communities.

  • Electric Cooperatives: The primary cooperative is the Southern Maryland Electric Cooperative (SMECO), which serves over 170,000 members in Calvert, Charles, St. Mary's, and part of Prince George's counties 12. Choptank Electric Cooperative also serves approximately 56,000 members on the Eastern Shore 12.
  • Municipal Utilities: Several towns operate their own electric departments, including Hagerstown Light Department, Easton Utilities Commission, and the utilities serving the towns of Berlin, Thurmont, and Williamsport 13.

Market Structure and Key Players​

  • Infrastructure Ownership: Exelon Corporation is the dominant force in energy delivery, owning BGE, Pepco, and Delmarva Power 12.
  • Generation: Constellation Energy, headquartered in Baltimore, is identified as the nation's largest producer of carbon-free energy and acts as a major competitive supplier 12.
  • Default Rates: Customers who do not select a third-party supplier are charged the "Price to Compare" (PTC) or Standard Offer Service (SOS) rate. ⚠️ Residential rates noted in search results were current as of March 2026; verify if this date is a projection or a typo for current data. 14

5. SSS-Eligible Resources​

No specific SSS-eligible resources identified. See section notes.

⚠️ Note: While legislative support exists, recent efforts to reclassify nuclear's role in the state's clean energy portfolio have faced challenges.

6. EAC/REC Registry Infrastructure​

Maryland does not maintain a standalone state registry for tracking Energy Attribute Certificates (EACs), commonly referred to as Renewable Energy Certificates (RECs) or Solar RECs (SRECs). Instead, the state relies on the regional PJM-EIS Generation Attribute Tracking System (GATS) as the official electronic registry to track, issue, trade, and retire credits for compliance with the Renewable Portfolio Standard (RPS) [1][3].

Registration and Eligibility​

To participate in the market, renewable energy systems must complete a two-step registration process:

  1. State Certification: Systems must first apply for and receive certification from the Maryland Public Service Commission (PSC) [2].
  2. Registry Enrollment: Within 30 days of receiving PSC certification, owners must register the system in PJM-GATS [3].

Once registered, the system generates one REC for every 1,000 kilowatt-hours (1 MWh) of electricity produced. PJM-GATS verifies this generation data and assigns a unique serial number to each certificate to prevent double-counting [2].

Certificate Lifespan and Retirement​

In Maryland, RECs have a lifespan of three years and must be sold or retired within that window to retain financial value [2]. When a utility or corporation purchases a credit to meet a compliance requirement or sustainability goal, the certificate is "retired" in the tracking system, meaning it cannot be sold again [2].

Legislation and Multipliers​

Recent legislative changes impact tracking and valuation:

  • Brighter Tomorrow Act (SB 783): Effective July 1, 2024, this act provides a 1.5x multiplier for SRECs generated by solar systems 5 MW or less that meet specific criteria, such as being located on rooftops or parking canopies [3].

Market Management​

While PJM-GATS serves as the infrastructure for tracking, the Maryland PSC maintains a "bulletin board" where owners can post RECs for sale. However, many owners utilize third-party aggregators or brokers (e.g., SRECTrade, Sol Systems) to automate the registration and sale process [3].

7. Grid Emissions​

Generation Mix​

Scope 2 Reporting​

  • SB 253 requires Scope 2 reporting for companies >$1B revenue

Source: EPA eGRID, EIA, state regulatory filings

References​

Sources & Last Updated​

Research Date: 2026-03-10
Data Sources: EIA, EPA eGRID, state regulatory filings, SerpAPI research aggregation

This page was generated using automated research and may contain inaccuracies. Verify critical data with primary sources.

Footnotes​

  1. Inertia Resources ↩

  2. U.S. Energy Information Administration (EIA) ↩ ↩2 ↩3 ↩4

  3. Maryland State Archives ↩

  4. U.S. Energy Information Administration (EIA); Maryland Department of the Environment ↩

  5. Low-Carbon Power ↩

  6. MD ISO RTO ↩ ↩2 ↩3

  7. MD ISO RTO +1, MD ISO RTO ↩

  8. MD utilities ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7

  9. MD deregulation +1, MD deregulation ↩ ↩2

  10. MD deregulation ↩ ↩2 ↩3 ↩4 ↩5

  11. Maryland Public Service Commission ↩

  12. Maryland Office of People's Counsel (.gov) ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8

  13. Wikipedia ↩

  14. Choose Energy ↩