PSC Further Suspends Tariffs That Would Compel Retail Suppliers To Transfer Certain PJM Price Responsive Demand Credits To Utilities

October 30, 2019

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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Maryland PSC has further suspended tariffs filed by Baltimore Gas and Electric, Pepco, and Delmarva to establish a process by which retail electric suppliers must transfer, to the utility, credits, which the suppliers receive from the PJM Interconnection, LLC (PJM), that are associated with each utility's participation in the PJM capacity market as a price responsive demand (PRD) resource

As exclusively first reported by EnergyChoiceMatters.com, the utilities have said that the current PJM process does not contemplate distribution utilities bidding PRD on behalf of their delivery customers, including competitive supply customers for which the utility is not the LSE, which the EDCs currently do. As such, the EDCs said that, for shopping customers, PRD credits resulting from actions undertaken by customers through utility PRD programs will inappropriately be provided by PJM to the customer's retail supplier (LSE) rather than the EDC

The utilities are seeking to require retail suppliers to execute a Billing Line Item Transfer (BLIT) with PJM that would cause PJM to transfer the financial credits associated with the EDC's PRD resource from the third-party supplier’s PJM bill to the EDC's PJM bill

As previously reported by EnergyChoiceMatters.com, RESA has filed comments with the Maryland PSC raising concerns about implementation of proposed tariffs

RESA said in previously filed comments that it opposes the Billing Line Item Transfer (BLIT) mechanism proposed by the utilities (as currently structured), "because it would foreclose suppliers from offering PRD programs to their customers."

The PSC previously suspended the tariff revisions 30 days from the effective date of October 1, 2019

The PSC said that, "It is the Commission’s understanding that discussions continue among the parties to address the PRD credits and that these tariff filings are tentatively set for review on the November 6, 2019 Administrative Meeting."

"Accordingly, the Commission hereby suspends each of the above-referenced tariff revisions for an additional 30 days (60 days in total) from the effective date of October 1, 2019," the PSC said

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