CUMBERLAND – February 24, 2026

Senator Mike McKay’s legislation to create a new energy framework for Maryland received a hearing before the Senate Education, Energy, and the Environment Committee last week.

SB 26 would establish “Consumer Regulated Electricity” (CRE), allowing independent, off-grid power providers to serve new commercial and industrial customers—without raising costs for existing ratepayers or straining the current power grid.

“Electricity bills are already too high, and the grid is already under pressure,” McKay testified. “We can’t keep doing things the old way and expect different results. SB 26 is a smarter path forward—one that brings jobs and investment without sticking families with the bill.”

Under the proposal, CRE utilities would operate independently from the existing grid and traditional utility regulation, allowing for faster development and more innovation. Because these systems serve only new commercial and industrial customers, existing residential ratepayers face no additional costs or risks.

McKay emphasized that the bill protects current customers while positioning Maryland—and Western Maryland in particular—for economic growth.

“This isn’t about changing anything for families who are already struggling with their electric bills,” McKay said. “It’s about making sure Maryland can compete for the jobs and industries of the future.”

The bill would also reduce pressure on utilities, the Public Service Commission, and regional grid operators, allowing them to focus on affordability and reliability for current customers.

A companion bill, HB 1190, has been introduced in the House of Delegates. A complementary federal bill has also been introduced to exempt CRE utilities from certain federal regulations, signaling national interest in the model.

“Federal officials have said the current system can’t keep up with demand,” McKay said. “SB 26 is a bold solution that protects ratepayers while enabling responsible growth. That’s the kind of innovation Maryland needs.”

If passed, the bill would take effect October 1, 2026.

Stay up to date on Senator McKay’s fight for Western Maryland—sign up for his District Newsletter at MikeMcKayMD.com/#newsletter.