Maryland PSC To Hold Further Hearing On Retail Market Changes Due To SB1

The Maryland PSC will hold a further hearing on changes to the retail energy market and related rules and processes in light of SB1

The latest hearing in PC 65 will be held on Wednesday, December 11, 2024

The PSC announced the hearing in welcoming stakeholder comments on a petition from retail suppliers for clarification from the PSC on several SB1-related issues; namely, the treatment of variable rate contracts which do not include a contract expiration date and thus are not "renewed", and the treatment of incidental residential accounts with respect to new residential rules, rate caps, and related prohibitions

Generally, SB1 (which includes rate caps among other new mandates) applies to new and "renewed" contracts; hence, retail suppliers are seeking confirmation that variable rate contracts without an end date are not "renewed" but rather continue as provided in the contracts, and that SB 1's provision that the new law shall not impair an "existing obligation or contract" applies to variable rate contracts without an end date

See a full discussion of the issues raised by retail suppliers, including issues regarding variable rate contracts which do not have an expiration date, here

While the PSC set the hearing in welcoming comments on the retail suppliers' latest request for clarification, the hearing was broadly noticed in the PC65 SB1 implementation proceeding, and the PSC did not specifically indicate that the hearing would be limited to the two new issues (variable rate contracts without an end date and IRAs) newly raised by retail suppliers

The retail suppliers' latest petition itself noted that suppliers still do not know how they will be able to bill residential customers starting January 1, 2025, as this "threshold" question remains outstanding (the issue largely being: how a continuation of POR would be implemented for grandfathered POR customers while implementing SB1's ban on POR for new & renewed residential customers; and would any mandatory dual billing be required as a result)

It is unclear if the PSC's December 11, 2024 hearing will more broadly address outstanding SB1 billing and POR questions

As previously reported by ECM, PSC Staff has proposed to implement SB1 by allowing residential utility consolidated billing with POR to continue through an intended end date of June 1, 2026 for existing customers (contracts existing or renewed prior to January 1, 2025).

Staff proposes to mandate the use of dual billing for residential contracts entered into or renewed on or after January 1, 2025, with this requirement intended to last until June 1, 2026. SB 1 prohibits POR for new and renewed residential customers

See full background and details here

PC 65, PC65