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Maryland PSC Denies Rehearing Over Use Of BGE Name By Competitive Affiliate

February 6, 2018

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Maryland PSC denied rehearing of its prior order in which, in response to a complaint filed by the Maryland Alliance for Fair Competition (consisting of various home service/HVAC vendors), the PSC had found no fact supporting a conclusion that Baltimore Gas and Electric Company (BGE) and BGE Home, Inc. had violated Commission regulations by the exchange of unlawful subsidies, intentional exclusion of competitors from BGE’s billing system, or any other practice, and in which the PSC had declined to discuss the issue of whether to prohibit from authorizing affiliate BGE Home to use its tradename (Case No. 9235)

In a rehearing request, the Alliance alleged that there is enough evidence in the record of Case No. 9235 for the Commission to reach a decision on whether BGE violated PUA §§ 7-211(h)(5)(iii), 7-211(h)(6), and/or 7-211(i)(4) by allowing BGE Home to use its name and logo without compensation

The PSC denied rehearing. "The Commission concurs with the expert opinion of its Staff that the Alliance has not established an adequate basis for a finding that PUA § 7-211 or any other statute has been violated as a result of 'nonmonetary subsidization through use of a trade name' or logo," the PSC said

The PSC noted that, SB 955 (the legislation that created §§ 7-211(h)(5)(iii), 7-211(h)(6), and 7-211(i)(4)) contains various safeguards and prohibitions against subsidies from an electric company to an affiliate, "but makes no mention of the use of trade names or logos."

"Since SB 955 of 2009’s enactment, the Maryland General Assembly has had the opportunity to clarify that an electric company’s affiliate may not, in fact, use the electric company’s trade name or logo without compensation. In 2011, 2012 and 2016, the General Assembly considered but did not pass measures that would have required the payment of compensation for the use of certain utility company trade names, logos, and other services. Given this history, the Commission has been and remains reluctant to attach an interpretation to a statute that would result in a policy outcome that has not received the clear endorsement of the legislature," the PSC said

"The Commission has also demonstrated its willingness to object when companies it regulates propose to use names that are similar to other well-recognized companies in a misleading manner, especially when the Commission views the name as giving them a clear advantage over other companies. In a recent series of administrative rulings and cases, for example, the Commission rejected the application of a company named Baltimore Power Company to provide electricity and natural gas services to residential, commercial, and industrial customers in the BGE service territory. The Commission felt that customers could confuse Baltimore Power Company with Baltimore Gas Electric Company, but was twice told by the Circuit Court of Baltimore City that it did not have a reasonable basis for reaching that conclusion. Considering that experience, and absent further clarity from the legislature, the Commission is even more hesitant to attach the Alliance’s preferred interpretation to PUA § 7-211," the PSC said

"To be clear, this Commission has not taken a position on this issue in the legislature, and will continue to defer to the wishes of the General Assembly. Unless and until another measure is passed, however, the Commission will continue to rely on its general affiliate code of conduct regulations, and to maintain its efforts to 'promote competitive markets and ensure that an electric or gas utility does not subsidize its affiliates.' Accordingly, based on the facts before it in this case, the Commission finds that BGE did not violate the plain language of PUA §§ 7-211(h)(5)(iii), 7-211(h)(6), and/or 7- 211(i)(4) by allowing BGE Home to use its name and logo without compensation," the PSC said

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