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Tag Archive: Maryland Public Service Commission

What’s the Latest on Supplier Consolidated Billing?

transmission towers for electricityWe have blogged previously about a petition filed at the Maryland Public Service Commission by five electric and natural gas retail suppliers seeking implementation of supplier consolidated billing (SCB). We did a video about it when the petition was filed, and our last blog on this topic was in February 2018, just after the legislative-style hearing concluded in Baltimore.

In the blog, you’ll see that we summarized the events at the hearing and even provided a picture of the four supplier witnesses testifying before the Commission, along with Brian Greene of our firm, so that everyone could get a feel for what it’s like to appear before the Commission (from the view of the Commissioners, no less!).

So what happened in the case since then, you ask?

In May 2018, the Commission issued this Notice of Briefing Schedule, requesting comments primarily on the legal issue of whether Maryland statutes allow a supplier utilizing SCB to initiate the disconnect process if the customer does not pay. Parties, including the petitioners, submitted comments on June 14 and June 28. We are now awaiting a Commission order or further guidance.

There’s also an SCB proceeding pending at the Pennsylvania Commission. On June 14, 2018, the Commission held a legislative-style hearing that will continue on July 12, 2018. You can get more info on the Pennsylvania proceeding here.  Delaware is also moving towards an SCB proceeding, with a recent Hearing Examiner’s report in Docket No. 15-1693 recommending approval of a Stipulated Order that calls for a new docket to be opened now to address whether SCB is permitted in and should be adopted in Delaware.

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.

Update on Supplier Consolidated Billing in Maryland

Maryland State House (side)

Maryland State House (side) (Photo credit: Wikipedia)

Last fall, Brian Greene discussed the Maryland Public Service Commission’s retail energy supplier consolidated billing proceeding. The Commission is considering supplier consolidated billing as an additional billing option for Maryland customers, alongside the existing utility consolidated billing and dual billing options. With supplier consolidated billing, customers would receive a single bill from their competitive retail supplier that includes both the electricity and natural gas supply charges (from the competitive supplier) and the utility’s transportation and distribution charges.

Under the existing billing paradigm in Maryland, the vast majority of customers receive a consolidated bill from their utility that includes both the energy supply charges and the utility’s transportation and distribution charges. Supplier consolidated billing would flip that model, enabling the competitive supplier to bill the customer, with the flexibility to expand product and service offerings. More information on the details of the proposal are available in the Petition and Reply Comments filed by the petitioning retail energy suppliers (NRG Energy, Inc., Interstate Gas Supply, Inc., Just Energy Group, Inc., Direct Energy Services, LLC, and ENGIE Resources, LLC).

In November 2017, stakeholders submitted extensive comments discussing the benefits and potential risks associated with the supplier consolidated billing proposal. Copies of the comments are publicly available in the Commission’s docket for Case No. 9461.

Following submission of the written comments, the Commission held a legislative-style hearing on February 20th and 21st. Here is a short summary of the two-day hearing:

  • The hearing began with a presentation from the Petitioners in support of supplier consolidated billing. The panel presented and answered questions from the Commissioner for about 2.5 hours.
  • Maryland’s distribution utility stakeholders followed the Petitioners, presenting their views on SCB and responding to the Petitioners’ presentation.
  • Following the utilities, a competitive retail energy supplier panel offered support for SCB, with some offering tweaks to the proposed program.
  • The next panel included public sector stakeholders from the Maryland Energy Administration and Montgomery County offering support for the proposed supplier consolidated billing program and suggestions regarding some of the program details. The Maryland Office of People’s Counsel also presented, discussing what it perceives as potential risks of the program.
  • Commission Staff rounded out the presentations, discussing the merits of the SCB proposal, offering support for the concept and at least one recommendation to alter the proposal.
  • The hearing concluded with the Petitioners offering a few final comments responding to some of the points raised by other stakeholders during the hearing.

After concluding the hearing, the next step is for the Commission to take further action on the proposal. If you are interested in the pending SCB petition in Maryland or any related competitive retail energy market issues, please contact one of GreeneHurlocker’s mid-Atlantic energy lawyers.

Appearing at the MPSC Hearing: From L to R – Brian Greene, Mike Starck (NRG Energy), Duncan Stiles (Just Energy), Tami Wilson (IGS Energy), and Alex Donaho (Direct Energy).

Moves Towards Supplier Consolidated Billing

In this Energy Update, Brian Greene explains how Maryland’s Public Service Commission is soliciting comments on the implementation of supplier consolidated billing. For more information about billing plans and regulation, contact Brian or any of our mid-Atlantic energy lawyers.

Retail Suppliers Petition MD Commission for Supplier Consolidated Billing

Earlier this month, five competitive retail suppliers (NRG Energy, Inc., Interstate Gas Supply, Inc., Just Energy Group, Inc., Direct Energy Services, LLC, and ENGIE Resources LLC) filed a petition electricity controlswith the Maryland Public Service Commission to implement supplier consolidated billing. If approved, the petition would allow retail suppliers to directly bill customers for both retail generation supply charges and utility distribution charges. Utility consolidated billing (where the utility bills customers for both the utility’s charges and the supplier’s charges) has been in the norm since Maryland restructured its energy market to enable retail competition.

The Maryland petition seeks to flip that model on its head. According to the petitioners, the supplier consolidated billing (“SCB”) model is a significant step in the evolution of competitive retail energy markets. In Texas, where SCB has been the standard for many years, suppliers have more flexibility to inform customers about their energy usage, develop innovative products and service structures, and adapt their customers’ bills to accommodate changes in the market. With SCB in place in Maryland, suppliers will be able to introduce new products and services that are not possible under the current utility billing model. As examples, suppliers will be able to offer flat billing options – where customers pay a set amount each month no matter how much energy they use or when they use it – and prepay service options – where customers pay in advance for their energy usage and then the energy they use counts against their account balance, with regular updates on the funds in their account and no surprise bills at the end of the month. In addition to these billing options, suppliers will be able to better inform customers about their usage and offer other energy-related products and services to Maryland customers.

Here are some quick points addressed in the SCB petition:

  • Supplier Qualifications – Suppliers must meet specific experience, operations, and financial security requirements to offer SCB services.
  • Receivables – Suppliers must purchase the full value of the utility’s receivables (for utility distribution charges) and take on responsibility for billing those amounts through to the customer.
  • Disconnect for Non-Payment – Currently, when a customer does not pay their utility bill, they will eventually have their service disconnected. With SCB, the same result would occur – with all existing customer safeguards remaining – but the supplier would initiate disconnects by notifying the utility that no payment has been received. From there, the utility would utilize existing disconnect procedures, including notifications to the customer. According to the petition, it is imperative that suppliers offering SCB services have the same tools at their disposal as to the utilities to manage their bad debt and encourage timely collections.

The Commission issued a Notice on September 15th requesting comments on the petition by November 15, 2017. If you are interested in learning more about the Maryland SCB petition or other issues affecting competitive retail energy markets in Maryland and other Mid-Atlantic jurisdictions, please contact GreeneHurlocker’s energy lawyers and regulatory attorneys.

Maryland Public Service Commission Rejects Utilities’ Proposals

Proposals Would Drive Up Costs for Competitive Retail Energy Suppliers and their Customerstransmission towers for electricity

Good news for Maryland’s competitive energy suppliers and their customers. In the past few weeks, the Maryland Public Service Commission issued two Letter Orders rejecting requests by BGEPepco, and Delmarva Power to include in the Purchase of Receivables programs costs incurred to comply with the recent RM54 proceeding. In other words, they wanted to recover those costs from competitive retail suppliers. Under the utilities’ proposals, costs to implement certain market enhancements – including 3-business-day accelerated switching – would have been recovered through the discount rate applied when the utility purchases supplier receivables.

There were slight differences to the utilities’ arguments. BGE argued that its current tariff allowed for recover through the POR rates of RM54-related costs. The Commission agreed with the Retail Energy Supply Association that BGE’s tariff does not allow BGE to recover these costs through POR discount rates. Pepco and Delmarva had sought to modify their respective tariffs to include language allowing for recovery. The Commission said no.  Also, in each case, the Commission stated that it “does not believe that it would be appropriate to force suppliers and their retail customers to bear the costs associated with the implementation of a program that benefits all ratepayers, as well as the competitive market as a whole.” Instead, the utilities can seek cost recovery through a base rate case.

RESA scored another win on a second issue in the case when the Commission rejected BGE’s proposed exclusion of revenues from late payment charges (“LPCs”) in the POR discount rate, effectively reducing the amount BGE pays suppliers for receivables purchased through the POR program. In a powerful rebuke to BGE’s proposal, the Commission explained that for “the past six years the Commission has consistently approved the inclusion of the LPCs in the discount rate calculation.  Similarly, the Commission has consistently denied any request for exclusion of these charges. The Commission reaffirms the reasons previously given for requiring the inclusion of LPCs in the calculation, declines to make the significant policy change being requested by BGE, and denies the Company’s request that LPCs be omitted from its POR discount rate.” This is a great result for RESA, the competitive retail energy supply markets in Maryland, and Maryland energy consumers.

Brian Greene, managing member of GreeneHurlocker, PLC represented RESA in this matter as referenced in the Commission’s Letter Order. The lawyers of GreeneHurlocker are pleased to be able to report this good news from Maryland and look forward to continuing to serve our clients in Maryland and the other jurisdictions where they operate. If you have questions about the details of this Commission Letter Order or any other matters involving regulated industries, please contact one of GreeneHurlocker’s regulatory attorneys.

Maryland Commission Approves 380 MW of Offshore Wind

offshore wind projectOn May 11th, the Maryland Public Service Commission approved two offshore wind projects, totaling 380 megawatts of wind capacity. Development of these offshore wind facilities is expected to create almost 9,700 new jobs. In the introduction to the order approving the projects, the Commission explains the significant environmental and economic benefits of offshore wind, positioning Maryland “to become a national leader in the burgeoning offshore wind industry.” The Commission’s order even quotes Governor Larry Hogan’s proclamation from his 2017 State of the Union Address: “Maryland is truly Open for Business.” The two developers approved to move forward with offshore wind development are U.S. Wind, Inc., and Skipjack Offshore Energy, LLC.

The Commission’s order establishes the Offshore Wind Renewable Energy Credit (OREC) price – a levelized price of $131.93 (in 2012 dollars), subject to a 1.0% price escalator. Starting in 2021, Maryland will include ORECs in its Renewable Portfolio Standard (RPS). This means that a portion of every unit of electricity purchased in Maryland will be backed by offshore wind. The Commission’s order (at Table 2) specifies that the offshore wind component of the Maryland RPS will begin at 1.37% in 2021, decreasing to 0.60% in 2042.

This is an exciting development for the renewable energy industry in our region and we look forward to continued and expanding opportunities for companies competing in the energy industry and the customers they serve.

If you would like more information about offshore wind in Maryland or other related opportunities, please contact one of GreeneHurlocker’s energy and regulated industries lawyers.

Community Solar Growing in Mid-Atlantic

Eric Wallace explains what’s driving the increase in interest and use for community solar energy generating facilities in mid-Atlantic jurisdictions such as Maryland and the District of Columbia. For more information about community solar projects and regulation, contact Eric or any of our mid-Atlantic energy lawyers.

Future of Maryland’s Energy and Distribution System

transmission towers for electricityThe Maryland Public Service Commission’s Public Conference 44 proceeding is now well underway. The purpose of this proceeding is for the Commission to seek input on the best ways to transform Maryland’s electric distribution system, advancing customer-centered, affordable, reliable, and environmentally-sustainable electric service. Stakeholder workgroups are meeting to develop proposals for the Commissions six different topic areas:

  1. Rate Design;
  2. Electric Vehicles;
  3. Competitive Markets and Customer Choice;
  4. Interconnection Process;
  5. Energy Storage; and
  6. Distribution System Planning.

We are working with retail energy clients and industry stakeholders to help develop time-of-use pilot programs, competitive retail energy options for electric vehicle owners, and utilize the more sophisticated meter data available through recently deployed smart meters. In the next few months, stakeholders will also begin meeting to develop proposals for enhancements to Maryland’s competitive retail energy markets.

We are excited to see where this proceeding will go and what new opportunities for Maryland businesses and energy consumers will result. If you are interested in learning more about Maryland’s PC44 proceeding or other developments in Maryland’s energy industry, please contact one of GreeneHurlocker’s energy and regulatory attorneys for more information.

Delaware Adopts New Consumer Protection Rules for Electricity Sales

The Delaware Public Service Commission has approved new Electric Supplier Rules for final publication in the April 1, 2017 edition of the Delaware Register. The rules will become canstockphoto17677884effective April 11, 2017.

The new rules replace Delaware’s existing Electric Supplier Rules and introduce numerous provisions that affect virtually everything that retail suppliers do – including not only obtaining a license but also marketing electricity and enrolling new customers.  In fashioning the new rules, the stakeholders looked primarily to Maryland’s and Pennsylvania’s recently-revised rules, and then tailored them to Delaware.  Retail suppliers will be required to make additional upfront disclosures in marketing and contract documents, and provide specific training for their agents. The rules directly address telemarketing and door-to-door sales and add requirements that do not exist today. As an example, for door-to-door sales, a supplier will be required to obtain a wet or electronic signature and also to perform a third-party verification. The rules also have a new definition and requirements for third-party verifications.

Our firm was very involved in negotiating the new rules and arguing non-consensus items before the Commission. If you’re a retail supplier eyeing Delaware as a new service territory, or if you’re already serving in Delaware, please feel free to call our energy lawyers with any questions.

 

CLIENT ALERT: Maryland Legislature overrides Governor’s RPS Veto

Breaking news February 2, 2017! The Maryland Senate, minutes ago, voted to override the Governor’s veto of SB 921 and HB 1106, the Clean Energy Jobs Act. The bill page has likely not been updated yet, but you can see the vote count here (32-13). The Clean Energy Jobs Act becomes effective 30 days after the override.