PSC Clarifies Part of Order Fining Retail Supplier $350,000

The Maryland PSC has granted limited clarification of certain provisions of its order fining Starion Energy $350,000, as such provisions relate to commercial customers at Pepco.

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Originally, the PSC ruled that Starion had served customers at the Southern Maryland Electric Cooperative, and commercial customers at Pepco, without the requisite license, because those service areas and classes were not identified on its initial or any amended license application.

In addition to the fine, the PSC had originally ordered Starion to notify in writing all of its SMECO customers and Pepco commercial customers, "informing them that Starion was not licensed to provide electricity service to them and that they may switch service back to their utility by notifying Starion in writing within thirty (30) days. This notice shall inform the customers that they will incur no termination fee or other charge for choosing to return to their electric distribution utility for energy service."

While Starion conceded that its original application did not identify the Pepco commercial class as a class for which authority was sought, a Staff recommendation for approval of the license had included Pepco commercial customers in the recommendation for the granting of a license. Starion said that to the extent the adoption of such Staff recommendation did not actually grant it authority to serve Pepco commercial customers, it acted reasonably in believing it was entitled to sell electricity to Pepco's commercial customers.

In response to a Starion motion for clarification of this issue, the PSC emphasized that its letter order granted Starion a license, "in accordance with its Application."

However, the PSC acknowledged that the Staff recommendation did check the box for "PEPCO – Commercial."

"Therefore, the Commission finds that in the absence of a corrected record, Starion reasonably relied upon the information contained in the Staff Recommendation in regard to its operations in the Pepco service territory," the PSC ruled

Accordingly, the PSC revised its order to remove Pepco commercial customers as a class which Starion must inform that Starion served such customers without a license, and also removed Pepco commercial customers as a class for which Starion is prohibited from enrolling new customers.

The PSC affirmed that all other penalties enumerated in its original order remain in effect.