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Maryland Takes Question Of Allowing Supplier To Use Name "Baltimore Power Company" Under Advisement (Commissioner Asks Why Names BGE Home, WGL Energy Are OK)

December 3, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Maryland PSC considered at its meeting yesterday the retail supplier license applications of Baltimore Power Company LLC, but took the matter under advisement and did not issue an immediate decision.

As previously reported, Baltimore Power Company is an affiliate of Massie Power LLC, which is licensed as an electric supplier and aggregator in Virginia (click here for more background)

PSC Staff and the People's Counsel have raised concerns that the name Baltimore Power Company, "could be potentially misleading," due to potential confusion with Baltimore Gas & Electric

PSC Staff noted several instances where companies have been asked to change their trade names as a condition of licensure, citing brokers PJM Wholesale Brokers, LLC (concern was use of PJM name when not affiliated with PJM, company agreed to market as US Grid Energy) and Maryland Energy Advisors (concern was that acronym MEA similar to Maryland Energy Administration, company adopted trade name PointClickSwitch)

Additionally, though not cited at the administrative meeting, EnergyChoiceMatters.com noted earlier this week several additional similar cases. The PSC raised similar concerns with the originally named Public Power & Utility when it applied for a license under its original ownership, as the company eventually adopted the name Public Power for use in Maryland as a condition of licensure (dropped the term "utility"). Additionally, the PSC granted Maryland Gas & Electric (MDG&E) licenses despite concerns over the name having the potential to be confused with BG&E, requiring MDG&E to list its legal names on all contracts as a condition of licensure, not just its trade name

However, Commissioner Anne Hoskins pushed back against Staff's cited precedent, noting that non-utility suppliers BGE Home and WGL Energy are permitted to use names that are potentially even more confusing given that, while affiliates of the utilities, they are separate from the utilities and the utility brands that customers know, and their rates, unlike the local utility, are not regulated.

"That to me would raise all sorts of competitiveness concerns," that affiliates are not held to the same standard as non-affiliates regarding the potential for confusion, Hoskins said

"Why would that [being an affiliate] make a difference if our concern is we want to make sure that customers know that this is not the utility," Hoskins said

Karl Malloy, Managing Director for Baltimore Power Company, said that he has not encountered confusion in discussing the company with Baltimore constituents

Malloy made an analogy to the Baltimore Orioles and Baltimore Ravens. Both are local sports franchises whose name includes the term "Baltimore" and a type of bird -- but there is no confusion among the two. The name Baltimore Power Company is significantly different from BGE in the same way that it would not cause confusion, Malloy said

However, Commissioner Lawrence Brenner said that a better analogy would be the situation which formerly existed in New York, where there were two teams, one baseball, one football, called the New York Giants. Due to confusion, Brenner noted that in discussing each, reporters and eventually the public did distinguish the teams by adjusting how the football teams was cited -- in calling the NFL team the New York Football Giants.

Due to the resources expended in developing the name and associated marketing materials, Baltimore Power Company is not inclined to adopt an alternate trade name, though in response to concerns from Staff, it provided revised marketing materials in which sales reps are to be instructed to ensure that the customer understands that the company is not the utility

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