Settlement Would Set "Interim" Amount For Bypassable SOS Administrative Adjustment at BGE, Defer Further Adjudication To Phase II Of Proceeding
October 28, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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A settlement among several parties in Baltimore Gas & Electric's rate case, which does not include retail suppliers as signatories, would establish an "interim" level for the bypassable electricity SOS Administrative Adjustment, while deferring further consideration of the issue to a second phase of the proceeding
The settlement would establish interim non-precedential
SOS Administrative Adjustment rates at the levels shown below, pending possible further adjustment as a result of the Phase II proceeding
Settlement Interim SOS Administrative
Adjustment Rates By SOS Class
mills per kWh
Type I 0.56
Type II 0.14
Any amounts collected through the interim SOS Administrative Adjustment rates will be returned to
electric distribution customers through Rider 10 of BGE's Retail Electric Service Tariff.
Currently, the SOS Administrative Adjustment component is 0¢/kWh, as set in a prior Commission order
As exclusively first reported by EnergyChoiceMatters.com, BGE has proposed to set the bypassable SOS Administrative Adjustment at 1.00 mill per kWh, for all of BGE’s SOS customer classes
PSC Staff has proposed setting the SOS Administrative Adjustment at 1.46 mills per kWh for residential customers and 1.25 mills per kWh for Type I customers, with the amount less than 0.5 mills per kWh for other SOS classes (see story here)
A coalition of retail suppliers has recommended setting the SOS Administrative Adjustment at 11.82 mills per kWh for residential customers and 21.06 mills per kWh for all non-residential customers
The settlement provides that an appropriate
SOS Administrative Adjustment will be addressed in the Phase II proceeding.
Under the settlement, any party
desiring to participate in Phase II may raise any issues they believe appropriate in the Phase II
proceeding relating to the allocation of costs for commodity service support to the appropriate
All testimony on the SOS Administrative Adjustment that has already been
filed in this proceeding will be considered as having been filed in Phase II of this proceeding. Discovery undertaken in Phase I can be used in Phase II.
Under the settlement, additional discovery related to issues
to be addressed in the Phase II proceeding will begin on February 15, 2020. PSC Staff, in
consultation with the Settling Parties and the Energy Supplier Coalition (ESC), will schedule meetings scheduled in February
and March 2020 to discuss the issues in Phase II, as well as the schedule and process for the
Phase II proceeding including any revised direct, rebuttal or surrebuttal testimony the parties
wish to submit.
The Phase II proceeding shall also include the opportunity to file additional
testimony, the ability to conduct further discovery, and an evidentiary hearing followed by post-hearing
The settling parties will propose to the Commission a procedural schedule to
be established for the Phase II proceeding to begin on April 1, 2020, and conclude by December
Settling parties include Baltimore Gas and Electric, the Staff of the Public Service Commission of Maryland, and the Office of People’s Counsel
The Energy Supplier Coalition does not support the settlement's provision regarding the SOS Administrative Adjustment. The ESC consists of NRG Energy, Inc., Direct
Energy Services, LLC, Vistra Energy Corp., and Interstate Gas Supply, Inc. d/b/a IGS Energy
The supplier coalition favors adjudicating the SOS Administrative Adjustment now, as part of consideration of the rest of the rate case and settlement.