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Staff Initiates Proceeding Regarding Green Energy Product Pricing
Staff is requesting the Commission to hold the second annual proceeding to establish a price cap for green energy products.
From Petition:
[ *** ] 2024’s SB 1 has a number of provisions limiting the price that an electricity supplier can charge a residential customer for green power. Specifically, PUA § 7-707(d)(2) requires that, on an annual basis, the Commission hold a proceeding to set a price per megawatt–hour for electricity marketed as green power that may not be exceeded by an electricity supplier.
To implement this requirement, Staff recommends that the Commission set a maximum price for each choice service territory that includes the most recent 12-month average SOS rate, along with the average Tier 2 REC price in the previous year’s RPS report. Choosing the Tier 2 REC price will limit a supplier’s ability to make an unfair profit by purchasing the least expensive RECs available. However, for a supplier that does plan on using the more expensive Tier 1 RECs, or has other cost drivers that cause its prices to be higher, PUA § 7-707(d)(3) allows that supplier to request a Commission proceeding to set the price of a green product specifically for that supplier. Nevertheless, Staff suggests that the generic green product proceeding should use the Tier 2 REC price as a reasonable benchmark.
Staff respectfully requests that the Commission hold the second annual proceeding to establish a price cap for green energy products as described above.
Petition (ML# 322078)
Elect757 (10/09/2024)
(Petition Of Commission Technical Staff For Green Product Pricing)
