Southern Maryland Electric Cooperative
| Company type | Nonprofit cooperative |
|---|---|
| Industry | Electric utility |
| Founded | 1937 |
| Headquarters | Hughesville , United States |
Area served | Calvert, Charles, Prince George's, and St. Mary's counties, Maryland |
| Products | Electric distribution |
The Southern Maryland Electric Cooperative (SMECO) is a nonprofit electric distribution cooperative headquartered in Hughesville, Maryland. It serves approximately 161,000 members throughout Calvert, Charles, Prince George's, and St. Mary's counties. Operating as a cooperative, SMECO transfers expenses directly to its member-customers without generating profit.
History
SMECO was initially established in 1937 by citizen groups from three counties who sought assistance from the Rural Electrification Administration. The cooperative adopted its current name in 1942 following reorganization. After Maryland enacted deregulation laws in 1999, customers were given the option to select their electricity providers starting in 2001. Between 2007 and 2011, SMECO received the J.D. Power award recognizing superior customer service among mid-sized utilities.
From 1990 until its sale to NRG Energy in 2015, SMECO operated a 77 MW gas turbine located at the Chalk Point Generating Station.
FERC solar complaint
SMECO submitted a complaint to the Federal Energy Regulatory Commission (FERC), contending that the Maryland Public Service Commission compelled utilities to purchase surplus solar energy from community solar initiatives at retail prices above the utilities’ avoided costs. This practice was argued to contravene the federal Public Utility Regulatory Policies Act (PURPA), which mandates payments to qualifying facilities based on avoided cost and caps facility size at 80 MW.
The expansion of community solar and net metering programs has led to debates over cost redistribution that may result in higher rates for customers without solar installations. In response, FERC has increased its examination of PURPA's application amid falling power costs and disparities between avoided costs and wholesale market prices, seeking to maintain equitable market conditions.