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Utilities Seek To Require Use Of Dual Billing By Retail Suppliers
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During a Maryland PSC conference concerning implementation of the ban on residential purchase of receivables (POR) effective January 1, 2025, a representative from Baltimore Gas & Electric said that there was "no way" for BGE, by January 1, 2025, to comply with SB1's prohibition on residential POR while still offering utility consolidated billing with a different payment mechanism required by rule
BGE said that having another system in place by January 1, 2025 that would end POR but allow UCB, in a form that would comply with current PSC rules (which require pro-ration of payments if POR is not offered) is "not possible" due to needed system changes.
BGE said that the mandatory use of dual billing by retail suppliers will need to be required for at least some period of time as utilities implement system changes to comply with SB 1 (and whether dual billing becomes the only option for suppliers is a matter to be further determined by the PSC, BGE said)
Likewise, a representative for the PHI utilities said that the only way the PHI utilities will be able to comply with SB 1's prohibition on residential POR will be through dual billing.
PSC Staff, however, said that requiring shopping customers to be served under dual billing is, "probably not the best idea". Staff is not advocating for mandating that suppliers use dual billing
Staff noted that the PSC could grant waivers of the current UCB rules that require utilities to either use POR, or to pro-rate payments between supplier and delivery charges.
Staff envisioned under the waivers that UCB would continue to be offered by the utilities, but without POR or pro-rata, until such time as the PSC adopts in a rulemaking a new policy in light of SB1. During such period, payments under UCB would likely be first applied entirely to utility charges, with only any remaining amount then paid to retail suppliers
Such waivers could allow the utilities to end POR for existing contracts without the need for a rulemaking (as has been sought by some parties as previously reported), but could also, from a rules perspective, allow utilities to continue to offer utility consolidated bills without prompting immediate system changes to offer pro-ration of payments as is required under current rule if POR is not offered (it was not clear if the utilities could by Jan. 1, 2025 put in place changes that would allow UCB to continue without POR and without pro-ration)
Further details on utility compliance plans will be filed by the utilities by August 9
The Commission did not render any decision at the conclusion of the conference, nor did Commissioners firmly commit to, or voice a strong preference for, any policy
However, Commissioner Bonnie Suchman was skeptical of arguments that SB1 specifically requires that POR shall continue for existing residential contracts
Retail suppliers have argued that language under SB 1 which states that, "a presently existing obligation or contract right may not be impaired in any way by this Act," means that POR must by law continue for existing residential customers, because to end POR would impair the billing services agreements between the utilities and suppliers
Suchman called such an interpretation, "a bridge too far", noting that the BSAs were not mentioned in SB 1
PC 65
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Utility: "No Way" To Implement, By Jan. 1, Solution To Continue Utility Consolidated Billing In Light Of Residential POR Prohibition
August 7, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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