News Stories

From the Maryland Public Service Commission (PSC) Order:

“In this Order, the Commission implements PUA §7-510(d), which states that as of January 1, 2025 “a residential electricity supplier may not sell to an electric company, and an electric company may not purchase from the electricity supplier, accounts receivable.” Based upon the record developed over the course of this proceeding, dual billing is the only feasible interim methodology until utilities can implement a non-Purchase of Receivable (“POR”) Utility Consolidated Billing (“UCB”) mechanism. Based upon this prohibition by the General Assembly, the Commission has no alternative but to direct suppliers to enroll all new customers after January 1, 2025, under dual billing.” 

“The Commission interprets a “renewal” under the statute to include any change in term or price after January 1, 2025. The Commission also determines that all variable price or term contracts shall end no later than February 28, 2025. Fixed term and fixed price contracts will no longer be billed by way of POR UCB after December 31, 2025. The Commission developed these “dates certain” to gradually phase out existing contracts while setting deadlines that would allow many of those contracts to expire under their own terms.” [emphasis added.]

The order also details the following is applicable to residential contracts for gas and electric customers only:

• dual billing for residential contracts is the only feasible interim methodology until utilities can implement a non-Purchase of Receivable (“POR”) Utility Consolidated Billing (“UCB”) mechanism;
• Suppliers must enroll all new residential customers after 1/1/25 under dual billing;
• All existing variable price, variable term, and automatic renewal month-to-month residential customer contracts must end no later than 2/28/25, with customers returned to default service or enrolled on a new compliant contract;
• Existing residential fixed term and fixed price contracts will no longer be billed through POR UCB after 12/31/25;
• Suppliers and utilities must “negotiate in good faith as to whether the post-POR future in Maryland utility billing will be Utility Consolidated Billing, Supplier Consolidated Billing (“SCB”) or Dual Billing.”

Regarding the issue of commercial customers with a residential meter on the account, the MDPSC said, “… whether a customer should be classified as residential or non-residential is determined by each utility’s Commission-approved tariff. The way the property is used dictates whether a customer is classified as residential or non-residential, and the customer does not have the authority to dictate their classification. The Commission will not inject itself into this issue but leaves the classification of customers to the utilities to determine pursuant to their tariffs. For purposes of compliance with SB 1, a customer classified as residential by the utility is a residential customer.”

Existing residential variable rate contracts as of January 1, 2025, must end, with customers dropped to default service or enrolled at customer’s affirmative consent on to a new compliance contract, by February 28, 2025.

Existing residential fixed rate contracts as of January 1, 2025, may no longer be billed through POR UCB after December 31, 2025.  

Note that the MD PSC in Docket No. 9461 is considering the impact of this prohibition on plans for SCB, while PC65 is considering the impact of SB1’s POR prohibition on other retail choice programs.

PC65 (Opened 07/23/2024)
The MDPSC opened this public conference to take input on the impact of Senate Bill 1, specifically the prohibition against selling to a utility, and a utility purchasing from a supplier, accounts receivable.