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Brian Greene Appointed to Virginia Israel Advisory Board

Brian Greene of GreeneHurlockerBrian has been named to the Virginia Israel Advisory Board (VIAB) by the General Assembly of Virginia.

The VIAB is a Commonwealth of Virginia agency that helps Israeli companies locate and grow their U.S. operations in Virginia. The VIAB offers a variety of programs to foster international business success in Virginia. Dov Hoch is currently Executive Director of VIAB, whose board includes business executives and other professionals from across the state.

“I’m delighted to serve on the VIAB and to be able to encourage Israeli companies to invest in Virginia, and to encourage partnerships between Virginia and Israeli companies,” Brian says.

“The VIAB has a proven track record of successfully forging economic and cultural links between Virginia and Israel, and I’m honored to be a part of it,” he explains.

Brian has always been very active in the Richmond Jewish community. He currently serves on the board of the Jewish Community Federation of Richmond and the Weinstein Jewish Community Center. He served for four years as the president of Rudlin Torah Academy, Richmond’s Jewish day school. He also has served on the board of the Herb Cohen Memorial Fund — which has provided more than 400 scholarships since 2001 for kids to attend summer camps — since its inception.

Brian concentrates on energy and utility regulation and related issues in the mid-Atlantic region, and he represents a diverse clientele of electric, natural gas, and water companies..
The mission of VIAB is to assist Israeli companies to locate and grow their U.S. operations in Virginia and to partner with Virginia businesses to facilitate the acquisition and use of Israeli technology. VIAB also focuses on increasing direct foreign investment in Virginia, and on bilateral trade and lasting partnerships, especially in industries such as manufacturing, maritime, military-related and agribusiness industries.

Maryland to Implement Supplier Consolidated Billing

Finding that supplier consolidated billing (SCB) represents the next logical step for Maryland to fully implement customer choice, the Maryland Public Service Commission on May 7, 2019 issued an order authorizing SCB for retail electric and natural gas service in Maryland. In this historic order, the Commission found that SCB could support the growth of retail competition in Maryland and is consistent with the Commission’s policies to promote competition. SCB, by augmenting the existing billing arrangements, should assist suppliers in establishing brand identity and clarifying the products available to customers. At the same time, SCB should facilitate the development of new and innovative products and services and increase the number of Maryland households that shop for electricity and natural gas. Based on these and other conclusions, the Commission found that “it is now appropriate to proceed with the development of SCB.”

The case was initiated by five retail suppliers – NRG Energy, IGS Energy, Just Energy Group, Direct Energy and ENGIE Resources – and the Commission held a hearing in February 2018. We’ve blogged about this case here and here and also posted a video blog here.

In the order, the Commission established the SCB Workgroup and immediately tasked it with developing an implementation timeline within the next 60 days. The timeline, filed in early July 2019, calls for full-on SCB implementation by September 1, 2022.

To guide the SCB Workgroup, the Commission addressed numerous substantive elements of the SCB program, the highlights of which include:

Supplier Qualifications to Provide SCB:

The Commission held: “any proposed regulations should comprehensively address the capabilities necessary to ensure that these functions are performed on par with existing utility offerings. Further, the regulations should be tailored to demonstrate that a supplier can meet the rigorous demands of increased customer service and dispute resolution functions, complex billing requirements, and the quality assurance and record keeping necessary to handle utility charges that may contribute to potential utility disconnections.”

Authority of SCB Providers to Disconnect Customers for Nonpayment:

The Commission rejected the petitioners’ request to allow SCB suppliers to initiate disconnects for non-payment. This had been a central element of the petitioners’ case because it is necessary to manage bad debt, similar to the utilities. In response to those concerns, the Commission will require that utilities purchase the outstanding distribution charges of a delinquent customer account upon the customer’s return to standard offer service (SOS), as further discussed below. For other charges, the SCB provider must resort to the traditional remedies of other non-regulated businesses, including reporting to credit agencies, seeking monetary judgments in court, and pursuing collection activities.

Purchase of Receivables (POR) and Supplier Bad Debt:

The Commission held that SCB suppliers must provide POR to the utili8ty on substantially the same terms as provide in utility consolidated billing (UCB). The Commission directed the workgroups, including the SCB Workgroup, to identify and propose an equitable payment posting priority system and other protections that may be necessary to ensure that any charges contributing to a disconnection are properly handled. Additionally, the Commission agreed with the petitioners that suppliers need some ability to protect themselves from the risk of non-payment. The Commission held that, after reasonable efforts to collect, the supplier should not be required to hold any debt attributable to the customer’s distribution charges paid under POR. Where a supplier can demonstrate the amount of unpaid distribution charges, the utility should repurchase those charges at a zero discount rate unless the SCB Workgroup can provide alternative calculations which are supported by a compelling analysis.

Customer Protection and Customer Education:

The Commission held that a supplier that offers SCB is required to provide all the same consumer protections, disclosures (including the utility’s price to compare), notices,
and billing information required of a regulated utility. This includes providing all surcharge line items and compliance with all current COMARs related to consumer protections. The Commission directed the SCB Workgroup to identify and justify any deviations from or additions to existing consumer protection standards. The SCB Workgroup should consider new disclosure and notice requirements for how utilities and SCB suppliers communicate the varying relationships to the customer, the content of past due notices by SCB suppliers, and the utility notices for customers selecting SCB.

Cost Recovery:

The Commission made no findings regarding cost recovery. The Commission directed the SCB Workgroup to identify and estimate, with as much detail as possible, these and any other costs and benefits related to SCB. The Commission directed the SCB Workgroup to consider varying cost recovery mechanisms and present either a consensus approach or options for Commission consideration. The Commission recognized that the SCB Workgroup might not reach a consensus on cost recovery but said, “this should not delay progress towards proposing regulations in other areas.”

If you have questions about SCB or electric or natural gas retail service in general, please contact one of GreeneHurlocker’s energy and regulatory lawyers.

GreeneHurlocker Welcomes Business and Employment Attorney Laura Kight Musick

Laura Kight Musick, a business and labor and employment attorney, has joined the business, corporate, and regulatory law practice as Counsel at our firm, Eric Hurlocker announced today.

“Laura brings a well-developed set of skills in commercial and employment law which our clients increasingly need as their businesses grow and become more complex,” Hurlocker said. “Additionally, her significant litigation experience dovetails nicely with our firm’s growing regional regulatory practice,” he explained.

Laura practiced in Illinois and Virginia in her prior firms, and has counseled clients in employment matters, including hiring, severance and transition agreements, employment policies, and risk management and avoidance. In addition, she advised her business clients regularly about contracts, financing agreements, and corporate formation and governance.

“I’m delighted to be joining GreeneHurlocker and offering our clients the benefit of my employment law background while advising them as they grow and expand their businesses,” she says.

Laura graduated summa cum laude from the Honors Program at Murray State University in Kentucky, receiving a dual degree in English Literature and Philosophy. She earned her J.D. at the Robert H. McKinney School of Law, Indiana University, and was the inaugural recipient of the Baker and Daniels Public Interest Law Fellowship in 2008.

Delaware Implementing Purchase of Receivables Program for Electricity Suppliers

At long last, the Delaware Public Service Commission entered an order adopting Delmarva Power’s proposed purchase of receivables (“POR”) program effective July 1, 2019. We previously blogged on this issue when Delmarva initially filed its proposal. The effective date was delayed by one month, but Delmarva will purchase suppliers’ receivables effective the end of May so that suppliers are not harmed by the delay.

The going-in rates for the first year of the program are in the table below. These are important because they represent the “haircut” that suppliers must accept when Delmarva purchases their receivables.

Residential Small commercial Large commercial Hourly Priced (LGS, GSP, GST)
Payment factor 99.3833% 99.6591% 99.8818% 100.00%
Discount factor 0.6167% 0.3409% 0.1182% 0.0000%

For more information, please contact one of our energy lawyers.

Comments filed on Draft Maryland Retail Supplier Load Shaping RFP

In late March, we posted about the Maryland Public Service Commission’s request for comments on a draft “Retail Supplier Load Shaping RFP” in the Public Conference 44 proceeding. In early April, comments were filed by the Maryland Energy Administration, the Retail Energy Supply Association, Direct Energy Services, Inc., Staff of the Maryland Public Service Commission, Baltimore Gas and Electric Company/Potomac Electric Power Company/Delmarva Power & Light Company, the Maryland Office of People’s Counsel, and CleanChoice Energy, Inc.

Parties encouraged the Commission to adopt an RFP process to maximize supplier participation, protect trade secrets, provide suppliers flexibility in their load shaping pilot proposals, and allow expanded billing options to enable suppliers to bring innovative proposals to the table. Some parties specifically pointed to supplier consolidated billing and on-bill financing as important tools to pair with supplier time-of-use electricity supply offerings within the pilot. Commenting suppliers noted some key improvements to the RFP structure as compared to a prior retail supplier time-of-use pilot design. However, suppliers also recommended that the Commission add options for marketing support for the retail supplier load shaping pilot offering to help get the word out about the program and encourage customer participation.

Additional recommendations addressed promoting use of renewable energy, access to historical usage data, expanded opportunities for net metering customers, and modifications to other program criteria. Suppliers also raised concerns about certain requirements that may discourage some suppliers from submitting bids to participate in the pilot program. The Office of People’s Counsel commented on the importance of minimizing the costs to both participating and non-participating consumers, ensuring adequate consumer protections, incentives structures, billing, and other issues. All of the comments were filed on April 9, 2019, and as of this post, we are waiting for further action from the Commission in response to the comments.

If you have questions or would like more information about Maryland Retail Supplier Load Shaping RFP or other regulatory issues, please contact Eric Wallace or any of our mid-Atlantic energy lawyers.

Delmarva Power Files Proposed DE Purchase of Receivables

transmission towers for electricityAfter years of proceedings at the Delaware Public Service Commission, the end – or the beginning – is in sight. In late March, Delmarva Power filed its proposed Purchase of Receivables (POR) program, including the going-in discount rates, with the Delaware Commission. With a POR program, the utility purchases the receivables of the retail electric supplier operating on the system, which helps to level the playing field between suppliers and the utility which has the right to disconnect service for non-payment.

Delmarva recommends that the program take effect for service rendered on June 1, 2019, as the Commission has previously directed. The discount rates are important because those are the “discounts” that retail suppliers must accept in allowing the utility to purchase the receivable. Delmarva proposes the following discount rates for the first year of the program:

Class Discount Rate
Residential 0.6167%
Small C&I 0.3409%
Large C&I 0.1182%
Hourly Priced Service 0.0%

 

It is expected that the Commission will consider the POR proposal at one of its May administrative meetings, in time for the program to being June 1, 2019. For more information, please contact one of our energy lawyers.

Good for the Earth

Back in 1970, few who celebrated the first Earth Day could have imagined the many ways that our world would have changed in the nearly five decades since. One good change is the increasing use of renewable energy, something we have a firm interest in since many of our clients are developing, financing and servicing the industry. And the fact that it has become an industry and grows stronger every year is definitely good for the earth. So, Happy Earth Day!

If you have a question about renewable energy in Virginia or the mid-Atlantic, simply contact any of our energy lawyers.

We’re Back at TomTom to Support Renewable Energy

On Wednesday, April 10, the TomTom Festival and Summit will hold its Renewable Energy Day in Charlottesville, Virginia, during the six day-long series of panels, speakers, podcasts, performances, parties and other notable goings about art, community, food, music, creative and entrepreneurial ecosystems, and innovation. We’re proud to be a sponsor again, and we are focused on the 9 AM panel “The Economic Development Opportunity of Renewable Energy.”

Many of our lawyers will be attending, and our partners Eric Hurlocker, Brian Greene and Jared Burden will be in Charlottesville to welcome you personally and to talk to you about the work we’re doing in renewable energy development and regulation. In addition, we would be glad to have the opportunity to introduce you to our OPENgc services for companies that currently operate without inside general counsel. If you don’t see us at the panel or breaks, come on to the exhibit area where we will try to answer your questions and send you home with a few small gifts.

If you are interested in knowing more about our TomTom sponsorship, the renewable energy industry or have a legal issue that you need to discuss, please feel free to contact Eric Hurlocker, Brian Greene, Jared Burden or any of our Virginia energy lawyers and business lawyers.

Maryland PSC Requests Comments on New RFP for Retail Suppliers

The Maryland Public Service Commission issued a Notice of Opportunity to Comment seeking comments on a new “Retail Supplier Load Shaping RFP.” The Commission want to consider “programs designed to demonstrate the ability to shape residential load profiles using innovative business models.” Comments on the RFP, a copy of which is attached to the Notice, are due April 9, 2019.

The RFP states that:

“The primary goal of this RFP is to identify pilots that demonstrate an ability to shape customer load profiles through load shifting, peak shaving, and energy efficiency. Applicants can propose any mechanism for load shaping such as sending appropriate price signals (real time rates), using technology to control usage (controllable thermostats), payment of rebates or behavioral modification treatments. A secondary goal is to test whether load shaping can lower customer bills or reduce the customers’ overall effective rate for electricity by avoiding energy usage during high cost periods. Customer satisfaction will be surveyed at the pilot’s conclusion.”

There’s some background here. In early 2017, the Commission established Public Conference 44 with various working groups. Three working groups involved areas where the retail supply market could be improved or could expand to provide additional services to Maryland customers. One of those working groups involved rate design issues and sought to develop TOU pilot programs. The Commission approved TOU programs for the utilities, which are now being marketed to customers. The Commission also approved an RFP to establish retail supplier programs. However, and the Commission in November 2018 issued a letter order holding that the bids received were not compliant and directed the utilities to reject them.

The Commission has now proposed changes to the prior RFP and has issued the current Notice to elicit more involvement from retail suppliers in a rate design program. The Commission seems determined to engage the retail supplier community in this effort, stating that, “[a]s Maryland moves forward with grid modernization, the retail supply community can play an important role in supporting policy goals, including more active efforts to shape load profiles.”

If you have questions or would like more information about community solar projects or other regulatory issues, contact Brian Greene or any of our mid-Atlantic energy lawyers.

Maryland Solar Groups Seek Community Solar Utility Consolidated Billing

On March 20th, the Climate Access Fund and Solar United Neighbors of Maryland filed a petition asking the Maryland Public Service Commission to require Maryland utilities to provide consolidated billing for subscriber organizations participating in Maryland’s Community Solar Pilot Program. The petitioners want utilities to include community solar subscription charges on customer bills. Today, subscriber organizations have to separately bill community solar subscribers. The stated objective of the petition is to make consolidated billing available for low and moderate income customers, helping to improve the economics of participating in the program. Two alternatives are proposed in the petition: (1) consolidated billing for all subscriber organizations or (2) consolidated billing for low and moderate income-focused community solar projects only.

We will be on the lookout for a response from the Commission and opportunities to comment on the community solar consolidated billing proposal. If you would like to review the filing, a copy of the petition is available on the Maryland Public Service Commission’s website: Mail Log # 224384.

For more information about Maryland’s Community Solar Pilot Program, check out our previous blog posts:

Maryland Proposes Community Solar Pilot Program Regulations
Community Solar Growing in Mid-Atlantic
Continued Progress for Community Solar in Maryland

If you have questions or would like more information about community solar projects or other regulatory issues, contact Eric Wallace or any of our mid-Atlantic energy lawyers.