Shock: Group Calls for End of Utility Consolidated Billing for Non-Commodity Services

A trade association has asked the Maryland PSC to terminate the ability of retail energy suppliers to use utility consolidated billing for non-commodity services.

Specifically, the Maryland Alliance for Fair Competition (Alliance), a coalition of energy service contract providers (HVAC, etc.), recently advocated during oral arguments that no third party, including BGE Home or any other retail energy supplier, should be allowed to utilize Baltimore Gas & Electric's consolidated billing option for non-commodity services, according to a filing by the Maryland Energy Marketers Coalition in opposition to the Alliance's request.

The oral arguments concerned an ongoing case at the PSC (see prior story) concerning the Alliance's petition for an investigation into the practices and interaction of BGE and affiliate BGE Home Products & Services, Inc. Among other relief, the Alliance had initially sought to, "prohibit the utility from authorizing its affiliate to use the customer accounting, billing, and collection services of the utility," but at no point prior to oral arguments did the Alliance seek to extend this prohibition to non-affiliate retail energy suppliers, the Maryland Energy Marketers Coalition said.

"With no prior warning, the Alliance argued on June 3, 2013, for the first time, that no one should be allowed the consolidated billing option, including BGE Home and any other retail supplier. That would include The Manchester Group LLC which, as MEMC describes in its testimony, is an affiliate of Interstate Gas Supply, Inc., d/b/a IGS Energy, an MEMC member. The Manchester Group has executed a Billing Services Agreement with BGE and has invested resources and allocated monies in reliance on that Agreement. The Alliance's reversal of its previous position, if successful, would thwart Manchester from having its Agreement remain in effect. It would also prohibit other retail suppliers from utilizing BGE's consolidated bill for non-commodity products and services. The prohibition would harm retail suppliers, including Manchester, but would also harm BGE's customers and retail competition in general, because customers would have fewer products and services from which to choose," the Maryland Energy Marketers Coalition said.

BGE recently developed the ability to allow non-commodity charges to be billed on the utility consolidated bill. These non-commodity charges are not included in POR, and previously the utility excluded non-commodity charges from the utility consolidated bill because it could not distinguish POR from non-POR charges.

Third parties utilizing BGE's consolidated bill for non-commodity products and services would be required to pay BGE a rate of $0.23 per bill.

The Manchester Group, LLC, an IGS Energy affiliate, markets a line of warranty products and is about to embark on a marketing campaign to Maryland consumers on the various warranty products and services it offers.