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Maryland PSC Staff Propose Prohibiting Retail Suppliers From Offering Any Residential Green Power Plan Unless PSC Approves Supplier's Offering (Approval Needed Even If Suppliers Use PSC-Set Generic Rate)
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Under an updated draft from Maryland PSC Staff to implement new green power marketing rules established by SB1, retail electric suppliers in Maryland would be prohibited from offering "green power" (as defined by statute) to residential customers unless a supplier receives specific PSC authorization to offer green power to residential customers -- even if the supplier relies on the annual green power rate set by the PSC
As previously reported, SB 1 only allows retail suppliers to sell "green power" to residential customers at either: 1) a price set by the PSC generically, or 2) a price established through a company-specific petition from a retail supplier
Under SB1, "green power" is defined as, "energy sources or renewable energy credits that are marketed as clean, green, eco–friendly, environmentally friendly or responsible, carbon–free, renewable, 100% renewable, 100% wind, 100% hydro, 100% solar, 100% emission–free, or similar claims." [Public Utilities Article § 7-707(a)]
See our prior story here for details on an earlier initial draft from Staff to implement SB1's green power marketing provisions
In an updated draft filed on Nov. 6, Staff's latest proposed rules would require, starting January 1, 2025, that any retail supplier seeking to offer green power to residential customers would need to receive specific PSC approval for any residential green power offer (essentially, retail suppliers must receive general authority from the PSC to offer any residential green power, regardless of price)
In contrast, under the original draft rules, if a retail supplier marketed green power at the PSC-set price, no PSC approval of the supplier's green power offering was needed, and no green power application from the supplier was required
Staff's latest draft sets forth a list of information retail suppliers would be required to provide in applying at the PSC to offer any residential green power product (and not only an offer that includes a price different from the PSC-set green power price)
Among other things, retail electric suppliers would need to include in their application:
• A description of the price the customer will pay for the green power
• Details on the RECs used for the green power offering, including fuel source and year created
• Details on the "green power source" and percentage of the plan that is marketed as green power
• A description of how the green power offer complies with state law and regulations
• A list of the marketing channels that the supplier intends to use, such as mail, web/online, television, radio, magazine, newspaper, etc.
• Examples of the marketing materials to be used by the supplier, for each marketing channel that will be used
As under Staff's prior draft, a supplier's price for a green power offer would be limited to either the price annually set by the PSC, or a price set through a supplier-specific application at the PSC
A retail supplier seeking authorization for a supplier-specific price would need to submit an application to the PSC. Such price application would require from the supplier information which is duplicative of the info required under the above-described general application for authority to offer residential green power, as well as additional information (it is unclear if the PSC would require completely separate applications, or would allow suppliers seeking a specific green power price to submit one application covering both their general offering of green power, and their price request)
Among other things, the green power price application would require retail suppliers to submit evidence of the market price for RECs that are similar to the RECs sought to be used by the supplier in the supplier's product
Most notably, Staff's latest draft adds two new requirements for supplier-specific green power price applications that were not in the prior draft.
First, suppliers would be required to provide an "independent third- party [sic] audit" of the supplier's costs, including the cost of the electricity supply, "as well as the applicant’s other costs".
Suppliers would also be required to show that the supplier, "has a significant long-term investment in renewable energy that meets the renewable energy portfolio standard under PUA §7-703."
As part of application process for supplier-specific pricing, Staff's latest draft would mandate that retail suppliers shall respond to data requests from the PSC's Staff and the Office of People's Counsel, as well as "other parties" to which the Commission has granted discovery rights
Staff's draft narrows the stated exception to the residential green power rules and reporting requirements.
In the original draft, the rules and reporting requirements would not have applied to those green power offers from electric companies offering SOS which have received PSC approval
In the updated draft, the exception from the residential green power rules and reporting requirements would only apply to an approved PSC green power offer from an "electric cooperative".
As such, the draft would still exclude from the rules SMECO's green power SOS option. However, as exclusively noted by EnergyChoiceMatters.com, Pepco and Delmarva offer a residential green power add-on (green rider) for customers served under rate R-PIV (plug-in vehicle). These green power offerings from the investor-owned utilities would no longer explicitly be exempted from the PSC's rule. Generally, under statute, the term "electricity supplier" (to which the new green power rules would apply) includes within its definition an SOS provider
PSC Staff's latest draft still includes broad language that suggests, under a certain reading, that all green power plans (not only residential plans) must have their RECs retired in GATS, which would limit the geographic areas from which non-residential green power plans could source RECs. See a full discussion of the issue in our prior story here
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Staff Propose Audit Of Supplier Costs, Show Of Long-Term Investment In Green Power, If Suppliers Seek Green Power Rate Other Than PSC-Set Rate
November 6, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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