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Tag Archive: retail electricity supplier

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.

Simple Guide to Electric Regulation Now New and Improved

If you have been wondering about the effect of Virginia’s 2018 General Assembly session on electric regulation in Virginia, Will Reisinger has good news for you. The GreeneHurlocker Principles of Electric Utility Regulation in Virginia, the firm’s complete guide to the state’s electric regulation laws, has been revised to incorporate legislation enacted by the 2018 General Assembly and signed by Governor Northam.
“The statutes governing Virginia’s electric utilities, found in Title 56 of the Code of Virginia, are extremely complex, but we’ve done our best to explain these laws in plain English,” Will, one of the firms energy lawyers, explains. The guidebook and its glossary of key terms is intended to be a reference tool for those who want to gain a better understanding of utility regulation and energy policy in Virginia. In 2018, the General Assembly made substantial changes to the rate setting portions of the law and added new incentives for utilities to invest in clean energy and grid transformation projects. The updated guidebook summarizes the major amendments made by the legislature earlier this year.
If you would like a copy of the guidebook, contact Will Reisinger or any of our energy lawyers, or download the complete document here.

SCC Decision Expands Access to Competitive Electric Supply

transmission towers for electricityWhile many political observers were focused on Senate Bill 966, the omnibus utility legislation that was just passed by the General Assembly, the Virginia State Corporation Commission (“Commission” or “SCC”) recently issued an important decision affecting customers’ rights to purchase energy from competitive suppliers.

On February 21, 2018, in Case No. PUR-2017-00109, the Commission approved the first ever “customer aggregation” petition under § 56-577 A 4 of the Code of Virginia. As explained in detail below, this section of the Code allows customers to aggregate their demand for the purposes of satisfying the 5 MW demand threshold required to purchase generation from non-utility companies.

In most circumstances, Virginia’s incumbent electric utilities, including Dominion Energy Virginia (“Dominion”), have a monopoly on the sale of electricity in their service territories. Customers must purchase energy from their utility. Virginia law, however, provides two exceptions to the utilities’ monopoly rights. (Under these two exceptions, customers may purchase generation from non-utility suppliers. But shopping customers must still pay for the utility’s distribution services.)

First, under Va. Code § 56-577 A 5, customers may purchase “100 percent renewable energy” from competitive suppliers if  the customer’s monopoly electric utility does not offer an SCC-approved 100% renewable energy tariff. No utility currently offers an SCC-approved 100% renewable tariff.

Second, Va. Code § 56-577 A 3 law allows large customers with annual demands over 5 MW to purchase generation from competitive suppliers. Importantly, the law also allows a group of customers to “aggregate” their demands in order to reach the 5 MW threshold. The statute treats large customers with multiple meter locations as different customers but allows them to aggregate to meet the 5 MW threshold. Once aggregated, the group will be treated as a “single, individual customer” under the law. Before allowing an aggregation, however, the Commission must find that the requested aggregation would be “consistent with the public interest.”

SCC Case No. PUR-2017-00109 was the first test of this statutory provision – that is, the first time a group of customers sought to combine their demands in order to reach the 5 MW threshold. In this case, Reynolds Group Holdings, Inc. (“Reynolds”), a metals and packaging manufacturer, petitioned the SCC for approval to aggregate six of its retail accounts in Dominion’s service territory.

Dominion and Appalachian Power Company (“APCo”) intervened in the case and opposed the petition. Dominion argued that allowing customers to aggregate their demand “would unreasonably expand the scope of retail access [and would] have the potential effect of eroding a significant portion of the utility’s jurisdictional customer base.” Dominion also suggested that the General Assembly – despite authorizing customer shopping and aggregation – intended to allow retail choice “only in limited circumstances.”

But the SCC, relying on the plain language of Va. Code § 56-577 A 4, rejected Dominion’s and APCo’s arguments and approved the petition. Dominion and APCo have until March 23, 2018, to appeal the decision to the Virginia Supreme Court.

The SCC is also currently considering additional aggregation requests filed by over 160 Walmart customer accounts in Case Nos. PUR-2017-00173 and PUR-2017-00174. (In both of these cases, GreeneHurlocker is representing competitive suppliers who are supporting approval of Walmart’s aggregation requests.)

Should you have any questions about customer aggregation or competitive supply options in Virginia, please contact one our regulatory attorneys.

Additionally, GreeneHurlocker recently published Principles of Electric Utility Regulation in Virginia, which provides a plain-English explanation of Virginia’s electric utility laws, including the statutes affecting retail choice.

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).

Delaware Sets Hearing for Retail Market Enhancements

The Delaware Public Service Commission has established a March 8, 2018 hearing date to consider retail choice enhancements.

The Delaware General Assembly meets in the Leg...

The Delaware General Assembly meets in the Legislative Hall in Dover. (Photo credit: Wikipedia)

The enhancements include a purchase of receivables program; “seamless moves” where customers may move within the utility service territory and maintain their supplier; “ instant connects” where customers may sign up with a supplier on their first day of service; an “enroll with your wallet” program where customers may enroll with a supplier without the use of their utility account number or other utility-assigned identifier; improvements to the Commission’s shopping website; and utility bill inserts to promote choice.

The proceeding has been pending since the end of 2015 when the Electricity Affordability Committee created by the Delaware General Assembly filed a petition with the Commission. Since that time, the parties have filed written comments and participated in working group meetings. Also, the case was stayed for a period of time while the parties and the Commission finalized amendments to the Delaware Electric Supplier Rules.

The case will be heard before a hearing examiner. The primary participants in the case are the Staff of the Commission, Delmarva Power, the Delaware Public Advocate, and the Retail Energy Supply Association (RESA). GreeneHurlocker is representing RESA in the proceeding.

For more information, please contact one of our regulatory attorneys.

Electric Utility Regulation Plain and Simple

As the 2018 General Assembly heats up, we expect energy issues to be front and center once again. That’s one of the reasons we just published Principles of Electric Utility Regulation in Virginia, a guidebook designed to provide a plain-English explanation of some of the state laws regulating Virginia’s two largest monopoly electric utilities.

Do you have questions about the role of the State Corporation Commission in setting rates? Wonder why you’re not getting a refund from your electric utility this year? Curious about whether energy companies are incentivized to invest in clean energy? This booklet answers these questions and provides a starting place for exploring Virginia’s complex regulatory system.

We hope this document will be a useful tool for legislators and their staff, the media, and all citizens who want to gain a better understanding of energy policy in Virginia. The link at the top will get you the electronic version immediately. If you would prefer your copy be a printed one, just contact Will Reisinger or any of our Virginia energy lawyers.

Virginia Energy Laws and Regulations Demystified

The GreeneHurlocker law firm has just published Principles of Electric Utility Regulation in Virginia, a guidebook designed to provide a plain-English explanation of some of the state laws regulating Virginia’s two largest monopoly electric utilities, explained co-managing member Eric Hurlocker, one of the firm’s energy law attorneys.

“The statutes governing Virginia’s electric utilities, found in Title 56 of the Code of Virginia, are extremely complex, but we’ve made our best effort at helping citizens who must do business with and purchase energy from Dominion Energy Virginia and Appalachian Power Company understand the rules in plain English,” said Hurlocker.

Co-Authored by regulatory lawyer Will Reisinger at the firm, the guidebook and its glossary of key terms is intended to be a reference tool for those who want to gain a better understanding of utility regulation and energy policy in Virginia.

“We hope this document will be useful for legislators and their staff, lobbyists, the media, as well as all citizens,” stated Reisinger.

Hurlocker has focused for more than two decades on advising clients in the areas of energy law as well as commercial transactions and general corporate work for energy and technology companies, manufacturers and services providers. After working in large law firms and for utility firms, Hurlocker joined with Brian Greene five years ago to form the GreeneHurlocker firm, which concentrates on work in energy law and for businesses in the energy space.

Reisinger, before joining GreeneHurlocker in 2016, served in the Office of the Attorney General of Virginia representing ratepayers in energy and utility matters before the Virginia State Corporation Commission, Federal Energy Regulatory Commission, and the Supreme Court of Virginia. Earlier, he was a staff attorney for a non-profit environmental organization, where he worked to enforce state and federal environmental standards.

Persons interested in a copy of the guidebook can contact Hurlocker, Reisinger or download the complete guidebook here.

Virginia Moves Forward with Carbon Cap and Trade Plan

But some uncertainties remain.

coal-fired plant in VirginiaOn Thursday, November 16, the Virginia State Air Pollution Control Board unanimously approved a draft rule designed to reduce carbon emissions from fossil generating facilities operating in the Commonwealth. The highly complex regulation, if implemented, would require Virginia generating facilities to participate in the Regional Greenhouse Gas Initiative (“RGGI”) trading system. The regulation will be administered by the Air Board and the Virginia Department of Environmental Quality (“DEQ”).

Following the publication of the rule, which is expected to occur in December or early January, 2018, there is a 60-day period in which the public and interested parties may provide comment on the rule. Following this public comment period, the Air Board would vote on the final rule in 2018.

The proposed rule would establish an initial statewide carbon cap of either 33 or 34 million tons, which represents the amount of carbon dioxide forecasted to be emitted in the Commonwealth in 2020. The carbon rule does not require generators to purchase emissions allowances from the Commonwealth in an auction, thus avoiding a state requirement that all revenue-raising measures must be approved by the General Assembly. Instead, generators will be freely allocated allowances, which they will thereafter consign to the RGGI auction.

Allowances purchased at the RGGI auction would no longer be conditional – meaning that generators will surrender these RGGI allowances to DEQ in order to cover their emissions. For each conditional allowance consigned to the auction, the generator will receive the clearing price of the auction. This allows generators to consign all of their conditional allowances but only purchase what they need.

Under the rule, therefore, utilities and other power plant operators would have an incentive to reduce emissions to avoid having to purchase additional allowances. Any unneeded emissions allowances must be sold in the RGGI trading system, with the proceeds credited to Virginia utility customers. However, the rule does not specify precisely how such proceeds would flow back to consumers.

The regulation would only apply to generation facilities that are 25 MW or larger in capacity. There are approximately 32 such facilities in Virginia that will be subject to the rule.

Between 2020 and 2030, the statewide carbon cap would be reduced by 3 percent each year, meaning that generating facilities would either need to reduce emissions or purchase additional emissions allowances.

The draft regulation represents the first time Virginia has attempted to regulate the amount of carbon that may be emitted by existing power plants. DEQ has regulated carbon emissions from new power plants since 2011.

Attorney General Mark Herring, in an official opinion issued in May, 2017, found that a carbon cap and trade program would be lawful. The Attorney General found that the Virginia State Air Pollution Control Board, under existing law, is “authorized to regulate ‘air pollution’” and to promulgate regulations “abating, controlling and prohibition air pollution.” Under Virginia law, “air pollution includes “substances which are or may be harmful or injurious to human health, welfare or safety, or to property.” The Attorney General also stated that “it is well settled that [greenhouse gases] fall within this definition.”

Virginia’s regulation will take the place of the federal Clean Power Plan, which is in the process of being repealed by the Environmental Protection Agency. Please contact one of our regulatory attorneys should you have questions about this draft rule.

SE Renewable Energy Conference 

Great two days in Atlanta with solar and wind developers, financiers, regulators and utilities discussing state of the market in the Southeast.  New tax reform and panel tariff cases at the forefront of discussions.  If you would like an update on the conference or have other renewable energy development questions, don’t hesitate to contact one of our energy lawyers.

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.