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Update: Consumer Advocates Propose Rule Language For Ending Purchase of Receivables For Retail Suppliers

June 9, 2023

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Maryland Energy Advocates Coalition (Advocates) has now filed specific rule language as part of its petition at the Maryland PSC requesting that the PSC initiate a rulemaking to eliminate the purchase of receivables program at the electric and gas utilities in the state

See our prior story for background on the petition

As previously reported, the Advocates' initial filing referenced an attachment that was to include specific rule language, but the filing did not initially include such attachment

The Advocates' proposed rule language has now been filed.

The Advocates' proposed rule changes would strike in their entirety the current POR rules, in the respective electric and gas sections of COMAR, which provide that utilities have the option of implementing POR, or using a pro-ration mechanism for partial payments

The Advocates' proposed rule changes would strike all language authorizing POR in its entirety, with no modifications or carve-outs (e.g. no carve-out for the supplier of a municipal aggregations)

The proposed rule changes would read, "A utility providing utility consolidated billing shall prorate customer payments between the utility and a supplier."

The proposed rule changes would not modify the existing pro-ration rules, other than making them mandatory for utilities

The rules provide that, in any pro-ration, a payment shall be allocated between the utility, supplier, and any other party in proportion to the percentage of the combined charges on the customer's total bill under terms and conditions approved by the Commission.

In their earlier petition, the Advocates explained that their proposed changes would, among other things, mean the following: "If a customer does not pay the entire bill, the utility would have the right to terminate utility service for non-payment of the utility charges.in [sic] accordance with Commission regulation."

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