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MD HB900

MD HB900
Electricity - Data Centers - Rate Schedule and Requirements


summary

Introduced
01/30/2025
In Committee
01/30/2025
Crossed Over
Passed
Dead
04/08/2025

Introduced Session

2025 Regular Session

Bill Summary

Requiring each electric company in the State to submit to the Public Service Commission for approval a specific rate schedule for certain data center customers with certain required provisions, including minimum durations, financial responsibilities, and fees.

AI Summary

This bill requires electric companies in Maryland to develop and submit a specific rate schedule for data centers and mobile data centers to the Public Service Commission (PSC) by July 1, 2026. A data center is defined as a centralized facility primarily used for electronic information services with a monthly maximum demand over 2,500 kilowatts, including cryptocurrency mining facilities. The proposed rate schedule must meet several key requirements: the load ramp period (the time to reach full service capacity) cannot exceed 4 years, contracts must be for at least 24 years, and customers must gradually increase their service usage during the ramp-up period. Customers will be financially responsible for minimum service charges even if they curtail or terminate service, and must provide a substantial guarantee or collateral (typically 50% of total minimum contract charges) when signing. To qualify, data center customers must own or have exclusive rights to the project site, submit a load study, and agree to reimburse the electric company for buildout costs if they cancel or significantly delay the project. The bill provides a potential waiver of the collateral requirement for customers with high credit ratings and substantial cash reserves. The Public Service Commission is required to adopt implementing regulations by January 1, 2026, and the bill will take effect on July 1, 2025.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

House Economic Matters Hearing (13:00:00 2/20/2025 ) (on 02/20/2025)

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