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Energy-Efficiency Funds and Demand Response Programs, Maryland

Updated April 2007

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What public-purpose-funded energy efficiency programs are available in my state?

Maryland's electricity restructuring law, signed in 1999, mandated the creation of a Universal Service Fund that provides bill assistance and weatherization for low-income customers. Currently, no public purpose funded energy efficiency programs are available to federal customers.

What utility energy efficiency programs are available to me?

No utility energy efficiency programs are currently available to federal customers.

What load management/demand response options are available to me?

The PJM Interconnection (PJM), a regional transmission organization (RTO), offers two demand response programs that may be attractive to federal facilities:

  • The Emergency Load Response Program provides participants with a payment representing the marginal cost of power at the nearest hub on the PJM system (the locational marginal price or "LMP") or $0.50/kWh, whichever is greater, for providing load reductions when notified by PJM of a system emergency. Compliance with any load reduction request is voluntary; no penalties are assessed if a participant decides not to provide a load reduction. Retail electricity customers may participate through any PJM Member (for example, their electricity provider) or directly, by registering as a Special Member with PJM.
  • The Economic Load Response Program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. As with the PJM emergency program, participation is fully voluntary. Program participants have the choice of two options: the Day-Ahead or Real-Time Option. In the Day-Ahead Option, participants submit load reduction bids (of at least 100 kW) into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices. In the Real-Time Option, participants can decide at any time to provide load curtailments (with one hour notice to PJM), and receive payment based on the real-time electricity price. Retail electricity customers can participate in the program through any existing PJM Member, such as their utility, a third-party electricity supplier, or a speciality "curtailment service provider" (CSP. Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage.

In both the emergency and economic programs, participants can provide load reductions either through curtailing electricity use or operating on-site generation.

Allegheny Power offers the Economic Generation Buy-Back Rider (PDF 10 KB, 2 pp), which pays customers to voluntarily run onsite generation (3 MW minimum) for two or more hours during periods of high wholesale electricity prices. Payment is based on the difference between the average of the six 30-minute integrated demands preceding the curtailment period and the maximum 30-minute integrated demand during the customer's participation.

Under its Rider 24, Baltimore Gas and Electric offers two demand response options to federal customers:

  • BG&E's Economic Load Response Program is very similar to PJM's program of the same name, with real-time and day-ahead options. Customers responding to BG&E's notification, either on a real-time (day-of) or day-ahead basis, receive 80% of the price that BG&E pays to PJM for their load reduction.
  • The Firm Capacity Incentive is a mandatory curtailment program that remunerates customers based on the prevailing market price for the pre-arranged amount of capacity they curtail.

BG&E's Hourly-Priced Service rate is a real-time pricing program whereby customers pay the company PJM's locational marginal price plus fixed adders for distribution, administration, etc. This rate is mandatory for customers over 600 kW who do not contract with a competitive electricity supplier.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs that offer incentives for renewable distributed generation. The following program may be of interest to federal customers:

The Maryland Solar Energy Grant Program offers the lesser of $5,000 or 20% of equipment cost for commercial solar PV installations, and the lesser of $2,000 or 20% of equipment cost for solar water heating projects. Systems must have a capacity of 2 kW or above.

Are there energy efficiency programs sponsored by state government?

No state government energy efficiency programs are currently available to federal customers. For information on potential future opportunities, contact the Maryland Energy Administration.

What additional opportunities are available to me?

Federal customers also have energy efficiency opportunities available with utilities that have area-wide contracts with GSA (e.g., AGL Resources, BG&E, Delmarva Power & Light, PEPCO, Southern Maryland Electric Cooperative, Trigen Baltimore Energy, and Washington Gas Light) and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of participation by their local utility.