|
|
|
|
|
PSC Staff Initiate Annual Proceeding For Cap On Retail Supplier Green Product Rates, Propose Level For Cap
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
Maryland PSC Staff have requested that the PSC initiate the annual proceeding to determine the price at which retail electric suppliers may offer green power to residential customers
As previously reported, SB 1 of 2024 only allows retail suppliers to sell "green power" to residential customers at either: 1) a price set by the PSC generically, or 2) a price established through a company-specific petition from a retail supplier
Under SB1, "green power" is defined as, "energy sources or renewable energy credits that are marketed as clean, green, eco–friendly, environmentally friendly or responsible, carbon–free, renewable, 100% renewable, 100% wind, 100% hydro, 100% solar, 100% emission–free, or similar claims." [Public Utilities Article § 7-707(a)]
More details can be found in our prior story here
Staff generally proposes to use the same price cap mechanism previously established by the PSC
Specifically, Staff recommends that the Commission, in the new proceeding, set a maximum green power price for each choice service territory that includes the most recent 12-month average SOS rate, along with the average Tier 2 REC price in the previous year’s RPS report.
"Choosing the Tier 2 REC price will limit a supplier’s ability to make an unfair profit by purchasing the least expensive RECs available," Staff said
Staff did not more specifically propose the new green price cap mechanism, though Staff also did not propose any changes to the current mechanism. To implement Staff's general recommendation that the green price cap should reflect the recent 12-month average SOS rate, along with the average Tier 2 REC price, Staff had last year developed specific green power premium factors and green product premiums, as discussed in our prior story. Staff's petition to open the new annual proceeding does not discuss any new green power premium factors or green product premiums
Staff said that, for a supplier that does plan on using the more expensive Tier 1 RECs, or has other cost drivers that cause its prices to be higher, PUA § 7-707(d)(3) allows that supplier to request a Commission proceeding to set the price of a green product specifically for that supplier.
"Nevertheless, Staff suggests that the generic green product proceeding should use the Tier 2 REC price as a reasonable benchmark," Staff said
Case 9757
Copyright 2025 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
September 4, 2025
Email This Story
Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
|
|
|
|
|