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PSC Adopts Changes To Retail Supplier Licensing Rules

June 14, 2024

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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The District of Columbia PSC has adopted final changes to both its electricity and natural gas retail supplier licensing rules

A PSC order issued on June 13, in the version posted online, did not contain a copy of the final rule language. However, from the description of the adopted changes, there does not appear to be any changes from the language from a proposed rule noticed in April 2024. No parties commented on the proposed rule

The new rules will be published in the DC Register

The adopted changes are similar under both sets of rules. Unless specifically noted, all rules and changes discussed below apply both to electric and gas.

The PSC has repealed the mandatory supplier education workshop for both electricity and gas supplier licenses

Completion of the workshop was previously required for new suppliers, and every three years for existing suppliers

"[A]pplicants for supplier licenses are required to have the knowledge and understanding of the Commission’s rules per the supplier application process and are imputed to maintain that knowledge as they conduct business and provide services in the District. It is our view, therefore, that the workshop obligation is a redundant and unnecessary requirement at this juncture. Accordingly, Section 4603, Electricity Supplier Education Workshop and Section 4703, Supplier Education Workshop have been repealed in their entirety," the PSC said

Under the adopted changes, suppliers will be allowed to provide a copy of any bond currently required under the licensing rules, rather than the original, with all of the same legal consequence and effect as the original. While final rule language is not available, it is expected that, based on the proposed rule, the copy of the bond shall include a notarized verification page from the issuer

The adopted rules provide that all electronic filings of bonds and similar instruments shall be accepted in such form, and possess the same standing of physical versions

The adopted changes exempt broker and aggregator applicants from the requirement to file sample supply contracts with the PSC (which retail suppliers must still do). This current requirement for brokers and aggregators has led to numerous data requests for insufficient applications by brokers, as brokers typically do not use their own supply contracts, and eventually just submit a sample from one of their retail suppliers

The PSC's written order only specifically notes that brokers and aggregators are no longer required to submit sample copies of customer contracts. As previously reported, the proposed rule also exempted brokers and aggregators from having to file sample bills. Without final rule language available, it's unclear if this provision exempting brokers/aggregators from filing sample bills is included in the final rule

The final rule provides for license revocation for inactive suppliers and other licensees (brokers, etc)

As described in the PSC's order, these rule changes permit the Commission to suspend following notice, and revoke, the licenses of suppliers who have not provided energy services within a two-year period, have not reported jurisdictional revenue within any consecutive two-year period, or are no longer providing energy services but have not submitted a license surrender application.

RM46-2024-01-E, RM47-2024-01-G

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