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25% Of Residential Choice Customers Dropped To Default Service, Retail Supplier Exits Market
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Washington Gas Light in Maryland reported that, since December 2024, it received drop notifications for about 25% of its residential choice customers
Effective January 1, 2025, price caps were instituted for non-grandfathered choice contracts in Maryland (with existing variable rate contracts not eligible for grandfathering), and such non-grandfathered contracts must be billed under dual billing or supplier consolidated billing.
As more fully discussed in our prior story (details here), any variable rate contract (including a defined term variable rate contract, and a contract with no set end date) is not eligible for UCB beyond Dec. 31, 2024
Specifically, WGL reported that it has received notification of 14,636 residential choice drops since December 2024. WGL had approximately 60,000 residential shopping customers prior to such drops
WGL further reported that, "As of January 17, 2025, one supplier has notified Washington Gas that it is leaving the Maryland residential market."
The exit of such specific retail supplier led to the drop of 7 customers to default service
WGL also provided an update concerning how it is addressing enrollments given the UCB ban for new and renewed customers
WGL reported that it rejected 263 residential enrollments, which had an effective date of January 1, 2025, due to not being on dual billing or SCB. These enrollments were submitted by 15 different suppliers
For such affected customers, the customer remained on default service if the customer was not being served by another retail supplier at the time of enrollment. If the new enrollment customer was previously with a different supplier but for which a drop transaction was submitted, the customer was dropped to default service. If the new enrollment customer had previously been with a retail supplier but did not have an active drop request at the time of the new enrollment, the customer remained with the original supplier
WGL stated, "Washington Gas has asked suppliers to cancel enrollments with a February 1, 2025 effective date. If the supplier fails to do so, the Company will cancel the transaction using the same logic it used to cancel the January 2025 enrollments."
WGL said that it will manually review whether residential enrollments are permissible, due to being on dual billing or SCB, until such time as it can automate rejection of UCB residential enrollments
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January 27, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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