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Maryland PSC Staff Revise Proposed Green Power Price Cap
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In a change to an earlier proposed annual update, Staff of the Maryland PSC have revised the proposed price cap for green retail electricity plans, though the proposed change is de minimis
Specifically, Staff now recommends that the Commission set a maximum green product price that includes the most recent 12-month average SOS rate of the customer’s respective utility service territory, along with the Tier 2 alternative compliance payment (ACP) of $15 per MWh.
Previously, Staff had recommended using the average Tier 2 Renewable Energy Credit (REC) price contained in the previous year’s RPS annual reports as a baseline, rather than the ACP
"However, as the difference between the two figures is under $0.003 per kWh, Staff chose the full ACP to reflect that Tier 2 REC prices may have increased throughout 2025," Staff said
As under the current cap, the green product price for the respective service territory will be calculated by taking the difference between the current year’s RPS requirements and the green power percentage that is being offered in the subject product. For example, if the green product is comprised of 51% green power, then this will be subtracted from that year’s RPS requirements. For 2026 the total RPS requirement is 40.5%. The resulting percentage would be 51% - 40.5% = 10.5%. This 10.5% will be known as the Green Power Premium Factor (GPPF).
Under the proposal, the GPPF is then multiplied by the Tier 2 ACP which produces the Green Product Premium (GPP) that the supplier will be permitted to add on to the most recent 12-month average SOS rate in the customer’s respective service territory.
Staff said, "Under this model, suppliers will be rewarded for offering a greener product by being able to achieve a higher GPPF."
Case 9757
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October 15, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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