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Maryland OPC Asks PSC To Require Utilities To Report on Retail Supplier Pricing For Low-Income Customers; Cites NY Moratorium, Wants Consideration of "Similar Reforms" For Md.

August 10, 2016

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Reporting by Paul Ring • ring@energychoicematters.com

Maryland Office of People's Counsel has asked the Maryland PSC to require the utilities to file information regarding retail supplier pricing applicable to customers participating in the Electric Universal Service Program (EUSP), citing New York's recent moratorium on low-income assistance program customer shopping, as OPC stated that the data would aid consideration of whether, "similar reforms," are needed in Maryland

Maryland's Office of Home Energy Programs (OHEP) currently allows customers that purchase electricity from a retail supplier to participate in the EUSP.

"While OPC does not object to OHEP continuing to do so at this time, it would be helpful to gauge whether EUSP participants purchasing electricity from retail suppliers are consuming BPA [bill payment assistance] benefits at a faster rate than if those customers had been receiving Standard Offer Service from their local utilities," OPC said

"OPC recommends that the Commission consider gathering the data needed to consider similar reforms here in Maryland. In order to accomplish this, OPC therefore recommends that the Commission direct Baltimore Gas & Electric, Pepco, Delmarva Power, SMECO, and Potomac Edison to report how many of their EUSP customers receive electric supply from a retail supplier, and how much those customers are paying for that electricity each month," OPC said

OPC cited New York's moratorium on low income customer shopping, as well as measures under consideration in Pennsylvania related to CAP customer shopping (prohibition on termination fees, potentially rate caps via Standard Offer program).

The Retail Energy Supply Association objected to OPC's request, stating RESA is, "concerned that OPC's representations in the OPC Comments with regard to low income programs and actions by other Commissions may not sufficiently describe what is happening in those jurisdictions."

Additionally, RESA noted that the Maryland PSC is already pursuing a study of competitive retail energy supply contracts and prices for low-income customers, having issued a Request for Proposals on June 15, 2016.

RESA is referencing a PSC RFP for a consultant to conduct a study to assist the Commission in making recommendations about the advisability of establishing an opt-in electric affordability program among retail electric companies for residential and small business customers and the manner in which the potential program should be conducted. As previously reported, legislation proposing the study of such a state-administered opt-in program affinity program had been proposed (winning approval by the House and key Senate committee but not receiving a vote in the Senate), but the PSC indicated it would still study the issue. Although the legislation was not specific as to the universe of customers, the PSC said in questions regarding its RFP that the program study should include low-income customers desiring an alternative to SOS

"RESA believes that it would be inappropriate to duplicate that effort and the associated costs on Maryland utilities and ratepayers in this proceeding. RESA is also concerned about the manner in which competitively sensitive pricing information may be collected and disseminated as a part of OPC's proposed pricing study. Rather than adopt OPC's recommendation, RESA recommends that the Commission move forward with the study pursuant to its RFP," RESA said

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