Proposed Legislation Would Require Maryland To Study Opt-In Retail Supply Affordability Program (Aggregation)

Two identical proposed bills in Maryland (SB 1075 and HB 927) would require the Maryland PSC to study the advisability of creating an opt-in electricity affordability (aggregation) program.

Speaking with ECM, Ron Cerniglia, Director of Government & Regulatory Affairs for the Mid-Atlantic Region at Direct Energy, which is advocating for the bills, noted that HB 927 is sponsored by Delegate Dereck Davis, Chair of Economic Matters Committee, and SB 1075 is sponsored by Senator Katherine Klausmeier, Deputy Majority Leader, and Senator Brian Feldman

HB 927 would provide that the Public Service Commission shall study and make recommendations about:

(i) the advisability of:

1. establishing an opt–in electric affordability program among retail electric companies for residential and small business customers in the service territories of the Potomac Electric Power Company (Pepco), Allegheny Power, Baltimore Gas and Electric Company (BGE), or Delmarva Power and Light Company that would be based on:

A. the offer of multiple–year contracts for electricity at a fixed price per kilowatt–hour;

B. value–added products and services to help customers manage overall energy costs; and

C. other potential customer benefits; and

2. allowing electric cooperatives to participate in the program under item (i)1 of this paragraph; and

(ii) the manner in which the program under item (i) of this paragraph, if advisable, should be conducted, including:

1. provisions relating to low–income customers to be assisted by the program;

2. the duration of customer contracts under the program;

3. procedures governing wholesale electricity procurement for the program;

4. the minimum qualifications of licensed electricity suppliers and associated providers of value–added products and services that would be eligible to participate in the program; and

5. procedures and principles of cost recovery for the implementation of the program.

In making the recommendations, the Commission shall consider the best interests of electric customers relating to the cost and reliability of electric service, the bill would provide

On or before December 31, 2016, the Commission shall report its recommendations under subsection (a) of this section to the Senate Finance Committee and the House Economic Matters Committee, in accordance with § 2–1246 of the State Government Article, the bill would provide