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PSC Commissioner Lauds Utility's Portfolio Approach To Default Service Given New Reality Of PJM Capacity Market

June 18, 2025

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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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During today's Maryland PSC administrative meeting, as the PSC addressed a Southern Maryland Electric Cooperative tariff filing related to SOS, Commissioner Michael Richard praised SMECO's portfolio approach to SOS given the current PJM capacity market

Richard highlighted some of the "innovative features" of SMECO's SOS procurement, that Richard said benefits SMECO's members (customers)

"We kind of learned recently at the FERC resource adequacy proceeding that PJM now thinks that states should look more to their own, I guess, look to secure more of their capacity, and rely less on the [PJM capacity] auctions, and so I think some of the features that SMECO employs are kind of leading edge on that, as far as offering hedges and bilateral agreements to secure directly capacity, and also through your [SMECO's] power purchases offsetting capacity needs," Richard said

Richard encouraged the Maryland SOS Procurement Improvement Process (PIP), which reviews the SOS procurement process annually, to review such aspects of SMECO's SOS approach for use at other utilities, and to advance Maryland in this area of being less reliant on the PJM capacity market

Today was said to be Commissioner Richard's final PSC administrative meeting

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