Maryland PSC Likely to Open Additional Proceedings on Supplier Regulations

The Maryland PSC is likely to open additional proceedings regarding rules governing the marketing of electric and natural gas suppliers and associated consumer protections, PSC Chairman Douglas Nazarian said during yesterday's administrative meeting.

Nazarian noted that the Commission currently has one open proceeding regarding which entities require licensure (Case 9245), and said that his guess is that "there are going to be others." The Office of People's Counsel has already requested a review of consumer protection standards (9/28).

Maryland is entering the, "Wild West of deregulation and customer choice," which, "our legislature perhaps did not quite envision when it thought it was opening these markets up," Nazarian said.

"There is going to be a lot of scrutiny on this industry -- a lot from this Commission," Nazarian promised.

Nazarian's comments came as the Commission granted broker licenses to Utility Choice International, which utilizes a network marketing approach (see related story). Speaking for only himself, Nazarian expressed "serious reservations" with whether the network or direct selling business model is good for the state of Maryland, but conceded that nothing in the law prohibits the use of such a business model. Nazarian stressed that his comments were not directed at Utility Choice International specifically, but at the entire industry.

"I don't think anybody really envisioned some of these permeations that we're seeing," Nazarian added, stating he had recently been cold called by two competitors of Utility Choice International despite being on the Do Not Call registry.

Nazarian said that the Commission will exercise "vigilance and adaptation" in supplier oversight going forward as more suppliers become active given the market and regulatory changes which have made the Maryland market more attractive.