PSC Rules That Opt-Out Aggregation Supply Rates & Contracts Do Not Need PSC Approval -- EnergyChoiceMatters.com

PSC Rules That Opt-Out Aggregation Supply Rates & Contracts Do Not Need PSC Approval

March 15, 2023

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Reporting by Paul Ring • ring@energychoicematters.com

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In addressing several non-consensus issues related to rules to implement opt-out municipal aggregation on a pilot basis, the Maryland PSC ruled that, "the Commission finds that the intent of § 7-510.3 is that the Pilot should proceed without requiring Commission approval of supply rates or procurement contracts."

Addressing non-consensus opt-out matters, the PSC said, "the Commission finds that § 7-510.3 does not provide for a permanent opt-out process, nor does it exempt any class of customers from the statutorily required notices. "

The PSC further said, "In forthcoming proposed regulations from the Workgroup, the Commission expects draft language that (1) tasks the CCA and the Utilities with developing processes for preventing and handling enrollment errors and (2) permits the Commission’s Consumer Affairs Division ('CAD') to direct the CCA to re-rate customers erroneously enrolled."

Concerning advertising rules for opt-out aggregations, the PSC said, "The Commission is concerned that the CCA would effectively permit a retail energy supplier, through the CCA, to market in a manner ordinarily prohibited. In forthcoming proposed regulations from the Workgroup, the Commission expects draft language that works toward a middle ground ... that ensures the necessary regulatory clarity. The proposed regulations should permit educational and informational communications with ratepayers but not permit unrestricted commercial or promotional advertising."

The PSC also addressed what information the governmental aggregation must file with the PSC

The PSC said, "In forthcoming proposed regulations from the Workgroup, the Commission expects draft language that establishes requirements: (1) that the County must describe with sufficient detail the manner in which it intends to set rates and assign costs to customers; (2) that the County must describe its purchasing plans and contracting methods with sufficient detail to ensure that such plans are feasible and will result in the County establishing a competitive process to procure the necessary energy contracts at just and reasonable rates; (3) for a mitigation plan that will minimize the impact on Standard Offer Service; and (4) any other filing requirements Staff judges to be necessary to fairly evaluate the County’s application in the light of the directives of the Commission in this proceeding and the standards of § 7-510.3."

"Such regulations should be detailed and specific, in the manner of Staff’s proposed regulations. They should, however, allow the County to exercise reasonable discretion and flexibility in scheduling procurements and rate setting without the necessity for Commission approval, so long as such actions are consistent with an approved aggregation plan," the PSC said

The PSC directed the municipal aggregation working group to develop consensus rules in light of these directives

Additionally, as part of such direction, the PSC said, "although the Commission declined to adopt Staff’s proposed regulations that would establish Commission rate-regulation over the CCA, the Commission finds that the protection of Montgomery County customers and utility SOS customers necessitates regular reporting on numerous areas including, but not limited to, enrollments, rates, procurements, and customer transition. In forthcoming proposed regulations from the Workgroup, the Commission expects draft language establishing such a reporting regime that will provide the necessary information for Staff, Utilities, and other stakeholders to monitor the progress of the Pilot, prevent injury to ratepayers or utility SOS programs, and enable the Commission to make its statutorily required reports to the legislature, while minimizing unnecessary burden on the County or Utilities. Staff’s proposed mitigation regulations, including 20.XX.19 in RM80, should serve as a starting point."

The Workgroup is directed to file a single set of proposed regulations for Commission consideration, to be filed no later than April 25, 2023

PC54

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