December 22, 2024
FERC Nixes SMECO Request to Pre-empt Md. Solar Rules
FERC denied a request by SMECO to rehear a petition asking it to rule that Maryland PSC's community solar program runs afoul of PURPA.

FERC last week denied a request by Southern Maryland Electric Cooperative (SMECO) to rehear a petition asking it to rule that Maryland Public Service Commission regulations on acquiring power from community solar facilities run afoul of the federal Public Utility Regulatory Policies Act (EL16-107).

FERC SMECO solar maryland
Centreville, Maryland Solar Array | Paradise Energy Solutions

SMECO and Choptank Electric Cooperative had asked FERC in 2016 to issue a declaratory order that the PSC’s rules covering from which facilities and at what price state utilities must buy solar is pre-empted by PURPA. FERC declined at the time, arguing that the action was premature because the program was voluntary and neither cooperative had indicated it planned to enter into the program.

The cooperatives in December 2016 then asked the commission to grant a rehearing of the request or otherwise clarify that the ruling was without prejudice so that they could bring their complaint again if the PSC failed to address their concerns. They also requested that the filing fee be waived the second time around. Last October, SMECO filed a motion to supplement the record to include a proposed solar tariff it had filed with the PSC, along with the PSC’s recommendations in response and subsequent letter denying the proposal.

FERC SMECO solar maryland
Hebron, Maryland Solar Array | Paradise Energy Solutions

SMECO argued this showed its intent to enter into the program and that it had exhausted all of its state law remedies, but FERC was not persuaded.

“SMECO’s motion does not allege any change to the facts relied upon by the commission in dismissing the petition, particularly, that the community solar systems program remains voluntary and that SMECO is not subject to the program’s regulations,” the commission wrote in denying the rehearing.

The order did clarify that the denial was without prejudice but did not waive the filing fee. Commissioner Robert Powelson didn’t participate in the order.

— Rory D. Sweeney

Community solarGenerationMarylandPJMSolar PowerState and Local Policy

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