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PSC Authorizes Retail Supplier To Use Supplier Consolidated Billing (First Authorization In State)

March 23, 2018

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

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The Maryland PSC granted Deca Energy Inc.'s petition to utilize supplier consolidated billing at Washington Gas Light

Deca Energy is the first supplier to receive authorization from the PSC to utilize supplier consolidated billing, which the PSC is currently reviewing in a generic case. WGL Energy does have authority to offer "blanket billing", which it has said is a form of "agency billing" distinct from SCB and which predates the PSC's original order which addressed SCB at the opening of the retail market in Case No. 8846.

The PSC's grant of such authorization was premised on the following conditions which Deca Energy has proposed to abide by:

1) A commitment to abide by the minimum billing requirements contained in Case No. 8846, 92 Md PSC 430, 434-437 (2001).

2) A commitment not to terminate a customer’s gas service for failure to pay any charges billed by Deca, including any receivables Deca has purchased from Washington Gas. Additionally, should a customer fail to pay its bill, Deca will return that customer to Washington Gas without any arrearages.

3) Deca will not impose any pre-paid security deposits on customers.

4) Deca will provide the Commission, Staff and OPC with a sample of its residential customer bill for review.

5) Deca will facilitate the process by which Deca learns of and provides credits to those customers who have received funds from the Maryland Energy Assistance Program ('MEAP').

6) Deca will provide Staff and OPC with a copy of its Maryland marketing materials at least 45 days prior to offering them to customers.

7) Deca will not charge a termination fee.

8) Deca will lower its prices for customers who reduce energy usage through the EmPower Maryland program.

9) Subject to specific exceptions, Deca will not terminate a customer’s contract should the customer’s gas usage vary from what Deca expected.

Additionally, Deca committed that, "if the Commission approves this request and grants Deca Energy the ability to proceed with supplier-consolidated billing, and the Commission, through Case 9461 or otherwise, establishes updated rules and/or regulations for supplier-consolidated billing, Deca Energy will most certainly comply with them where applicable."

In granting Deca authority to use SCB, the PSC said that it, "agrees with MEA [Maryland Energy Administration] that granting Deca’s request will strengthen the competitive market of gas suppliers in the WGL territory. WGES is already offering an alternative to WGL’s utility-consolidated billing, and Deca’s consolidated billing will offer gas customers even more choices. Subject to Deca’s compliance with the commitments set forth [above] in its Request for Rehearing and Reconsideration, and with the express understanding that this approval is subject to any changes to rules regarding supplier-consolidated billing the Commission may create in Case No. 9461 or otherwise, the Commission grants Deca’s request to offer competitive billing services in the WGL service territory, contingent on the agreement of WGL."

"Although the Commission understands the arguments raised by OPC, the Commission is confident that it can address any applications filed by third-party suppliers in the future on a case-by-case basis, based upon the public interest. Deca’s nine additional commitments substantially meet OPC’s concerns raised in its August 7, 2017 letter. Based upon the record and existing billing protocols of Case No. 8846, Deca’s request for authorization to offer supplier-consolidated billing is compliant and granted," the PSC said

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