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RESA Seeks Shorter Period for Collection of Prior Mitigation of BGE SOS
September 22, 2011
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The Retail Energy Supply Association has requested that the Maryland PSC collect previously mitigated SOS costs from Type II G and GS customers at Baltimore Gas & Electric over a period of three months, rather than the 12-month period contained in a BGE tariff filing.
As only reported by Matters (9/2), Baltimore Gas & Electric filed a tariff rider (Rider 29) to recover from Schedule G and GS Type II customers the Standard Offer Service costs which should have been collected in 2008, but which were mitigated by the Maryland PSC in an action later determined to be unlawful by the courts.
As filed, Rider 29 would collect (and credit back) the formerly mitigated charges over a 12-month period, subject to a final true-up. It appeared that the filing resulted from a PSC bench order, and that the time period over which the prior mitigation would be collected had already been established.
Noting that the original mitigation was in effect for three months, RESA said that "[a] one-year effective period [for recovery of mitigation] does not mirror the amount of time that the mitigation effort was in effect and is not needed given the state of competition in today's Type II market."
Noting the robust retail market, multiple suppliers, and numerous competitive offers available for Type II customers, RESA said that, "the Schedule G and GS customers do not need the 12-month duration because they have multiple retail suppliers ready to serve them, and there is no need to increase the Type II supply price artificially for one year as opposed to three months."
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