Baltimore-based energy company Constellation received approval Tuesday from state regulators to begin a process to build or expand natural gas and hydrogen power plants in Maryland.
Constellation proposed its plans to the Maryland Public Service Commission in response to a state initiative to find power generation developers under a new law fast-tracking such projects,
State officials hope the law will help Maryland produce more of its own energy and rein in utility bills for ratepayers. The legislation was part of a broader package designed to reduce the state’s reliance on energy imported from other states, limit the need for new transmission lines and allow Maryland to determine its energy mix, including natural gas, nuclear and solar generation.
The Public Service Commission, which regulates Maryland’s public utilities and energy development, selected projects to move quickly through an expedited “certificate of public convenience and necessity” process required to build energy stations.
A coalition of environmental groups led by 350 MoCo submitted comments urging the commission to prioritize renewable energy paired with storage as the fastest and least expensive solutions. The groups opposed expanding natural gas generation, saying it would impede the state’s climate goals. State law calls for cutting greenhouse gas emissions by 2031 and reaching carbon-free levels by 2045.
Constellation’s proposed natural gas plants, which could be converted to hydrogen power in the future, would boost gas generation capacity in Maryland by nearly 14%, according to a commission order filed late Tuesday.
The company, the nation’s largest operator of nuclear power plants and soon to be the world’s largest publicly traded power producer, said last month it is laying the groundwork for what could be billions of dollars in new generation and energy storage projects capable of powering several million homes. Constellation outlined options that could include expanded natural gas, nuclear and battery storage facilities.
The commission’s decision allows Constellation to move forward with two natural gas proposals at the company’s Perryman Generating Station in Aberdeen. The projects would generate a combined 714 megawatts of power using existing Constellation-owned gas combustion turbines. The generators could later be converted to operate on carbon-free hydrogen fuel.
Joseph Dominguez, Constellation’s president and CEO, has said the company’s plans will depend on energy policy set by the state. It is expected to take up to five years to develop any new gas-powered generation in the state.
“Constellation hopes to be a thought partner as Governor Moore and other policy makers consider the state’s many choices,” Dominguez said in a statement last month when Constellation announced its proposals. “While there is a good deal of consensus on the need for battery storage, the future of natural gas in our state is less clear.”
Dominguez noted that some Maryland residents support the pipeline work required for the projects, while others strongly oppose new infrastructure construction.
In comments filed with the commission, the Mid-Atlantic Justice Coalition objected to the Perryman proposals, saying the surrounding community is already overburdened and underserved.
“Multiple environmental organizations … have cautioned against the construction of new fossil fuel generation, which could delay achievement of the state’s environmental and climate goals,” the PSC said in its order. “The Commission is cognizant of and shares these concerns. However, the General Assembly has made a policy decision to expedite new generation construction, including natural gas-fired power plants under this process.”
The commission declined Constellation’s proposal for a state-of-the-art battery storage project in Aberdeen because it did not meet the requirements set by law. Battery storage allows electricity to be released to the gird quickly during times of peak demand, but the commission said Constellation may resubmit a revised proposal.
Constellation was one of only three developers that submitted proposals. Brandywine-based Alpha Generation proposed expanding capacity at its Keys Energy Center, a natural gas-fired facility. Total Civil Construction & Engineering submitted a proposal labeled confidential.
Both developers later withdrew their projects from the fast-track process.
Have a news tip? Contact Lorraine Mirabella at lmirabella@baltsun.com and (410) 332-6672.