NEM Supports Rehearing Request Regarding Termination of Columbia Choice Program

The National Energy Marketers Association filed comments in support of a rehearing request regarding the Maryland PSC's decision to end the choice program at Columbia Gas (see 1/9).

The City of Hagerstown, Wastewater Division has requested rehearing of the decision, arguing that it had no notice that the choice program would end, and that the PSC's decision will force it to forego negotiated savings with a retail supplier.

The PSC ended the choice program through a ruling on a Columbia compliance filing, which NEM said was an inappropriate mechanism for such a decision.

"A utility compliance filing should not affect a sea change in Commission policy. Stakeholders, including customers such as Hagerstown, would not have reasonably contemplated such a result," NEM said.

"In fact, the significant substantive issue of the potential elimination of Columbia's overall choice program constitutes a new rule. As such, it should properly have been subject to the requirements of the State Administrative Procedures Act that requires that potentially affected parties be provided with notice that the Commission was contemplating such a decision and to afford such parties with the opportunity to be heard. It was not reasonable for customers such as Hagerstown, or other entities, to contemplate or take notice that the outcome of ending the choice program would be made in the context of reviewing Columbia's compliance plan to implement regulations that were intended to enhance the availability of choice," NEM said.

While the PSC reached its decision by finding that the choice program will not be economically cost-effective given low participation and required compliance costs, NEM said that, "[t]his rationale for ending choice in Columbia's service territory is deficient inasmuch as the program with a POR enhancement was never put in operation and given an opportunity to work."

While transportation service will continue, and Columbia will offer current small commercial choice customers an opportunity to take transportation service, "[e]nergy choice options should not be reserved for only the very largest commercial customers in Columbia's service territory," NEM said.

"The individuals that by day work in the large commercial businesses that are allowed to shop for energy should be able to go home and have that same choice," NEM added.