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Office Of Staff Counsel Files Comments Regarding Language For Residential Retailer’s Notices and Disclosures
Staff Counsel provided comments on website posting and the environmental disclosure.
From Comments:
[ *** ] Terms and Conditions
PUA § 7-315(c)(1) requires a residential energy retailer to post the terms and conditions of the residential services and products sold by the retailer on its website. This is similar to the existing requirement in PUA § 7-507(j), which requires that an electricity supplier (a definition which includes brokers and CSPs) post on the internet information that is readily understandable about its services and rates for small commercial and residential electric customers. While PUA § 7-507(j) only references electricity suppliers, when read in conjunction with PUA § 7-604(b)(2), it may be applicable to natural gas suppliers as well. Additionally, COMAR 20.53.07.07.C requires that an electricity supplier post on the internet readily understandable information about its services, prices, and emissions, and COMAR 20.59.07.07.C imposes all but the emissions requirements for natural gas suppliers.
To ensure compliance, the Commission could allow residential energy retailers to post the “Contract Summary” as required by COMAR 20.53.07.08.B and 20.59.07.08.B for each currently available offer.
Environmental Disclosure
PUA § 7-315(c)(2) requires a residential energy retailer to post an environmental disclosure on its website for the residential services and products sold by the retailer. This is similar to the existing requirement in PUA § 7-505(b)(4), which requires each electric company and electricity supplier (collectively “Retail Suppliers”) to provide information to customers regarding the fuel mix of the electricity purchased by customers. However, PUA § 7-315(c)(2) appears to apply to both electricity and natural gas providers, whereas PUA § 7-505(b)(4) only applies to electricity providers. Again, the language in PUA § 7-604(b)(2) may make this requirement applicable to natural gas suppliers as well.
Under PUA § 7-505(b)(4), Retail Suppliers must inform the customer of the emissions of certain pollutants on a pound per MWh basis. The Retail Suppliers’ disclosure may consist of a regional fuel mix average and regional emissions information. Fuel mix categories include: coal, natural gas, nuclear, oil, hydroelectric, solar, biomass, wind, and other resources. This information is to be provided to the customer every six months, and suppliers must post environmental information on the company’s website in locations that can be readily accessed by the public. Continuing this practice should meet the requirements of PUA § 7-315(c)(2) with regards to electricity suppliers.
On October 9, 1996, the Commission instituted Case No. 8738.2 Consistent with Case No. 8738, Commission Order Nos. 76241, 77412, and 77666 were issued on June 15, 2000, December 11, 2001, and March 29, 2002, respectively; the Commission has accepted either the fuel mix label generated by PJM for the PJM Region, or an individualized label prepared by the Retail Suppliers.
PJM Environmental Information Services, Inc. (“PJM-EIS”) owns and administers the Generation Attribute Tracking System (“GATS”). The GATS database tracks information regarding attributes associated with electricity. Data in the GATS include MWhs produced, fuel sources, and emissions data. PJM GATS posts data for two public reports, or labels, related to fuel mix: the PJM System Mix and the PJM Residual Mix.
The PJM System Mix lists the average attributes of all PJM generation in the PJM wholesale market. The PJM Residual Mix report lists the average attributes of all MWhs of energy, both PJM generation and imports, that were not reserved, retired or banked by a GATS account holder. The PJM Residual and System Mix reports are simple to understand and easy for the Retail Suppliers to obtain from PJM. The PJM reports are accurate for emissions and fuel mix disclosure because most electricity suppliers provide energy for their customers in Maryland from generic wholesale market pool resources with no resource-specific contracts. Further, the regional average is acceptable because the Commission, by Letter Order, dated June 18, 2004, in Case No. 8973, stated that “…load serving entities may utilize regional average data…to meet their emissions and fuel mix disclosure requirements in Maryland.”
While the continued use of the PJM Mix would satisfy the requirements of PUA § 7- 315(c)(2) for electric suppliers, it is of no use to natural gas suppliers. However, as most natural gas suppliers have virtually identical emissions, the Commission could issue a generic environmental disclosure for each natural gas supplier to use.3 While the actual emissions would be affected by the manner in which the customer uses natural gas, the supplier would generally have no knowledge of how the customer uses natural gas.
Conclusion
To meet the requirements of PUA § 7-315(c)(1), the Commission could allow retail suppliers with residential customers to post on their website the “Contract Summary” as required by COMAR 20.53.07.08.B and 20.59.07.08.B for each currently available offer.
Regarding the environmental disclosure required by § 7-315(c)(2), Staff advises that the existing requirement established by PUA § 7-505(b)(4) already satisfies the environmental disclosure for suppliers serving residential customers with electrical supply. To satisfy PUA § 7- 315(c)(2)’s requirement for suppliers serving residential customers with gas supply, Staff recommends that the Commission use the EPA approved form in Exhibit A. While the actual emissions would be affected by the manner in which the customer uses natural gas, the supplier would generally have no knowledge of how the customer uses natural gas.
Staff Comments (04/14/2025)
PC68 (02/03/2025)
(Language for Residential Retailer’s Notices and Disclosures)
