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PSC Issues Final Order On Proposed Green Offering Regulations
As previously reported the Maryland Public Service Commission (PSC) opened rulemaking 84 (RM84) as part of its implementation of the retail market-wrecking SB1. Note also that docket 9757 focus is on revising regulations governing green product offerings found in COMAR 20.53 and 20.61.04.01.
Among other things, the MD PSC ‘green offer’ order requires:
- The maximum green power product pricing for each utility territory is to be based on the trailing 12-month average SOS rate, along with the 2023 Tier 2 REC price;
- Suppliers that wish to use the more expensive Tier 1 RECs as part of a green power offer may petition the MDPSC for authority to charge a price higher than the established baseline as delineated in SB1;
Also note that the MD PSC interprets SB 1 to encourage procurement of verifiable RECs within PJM markets, and therefore directs retail electric suppliers to retire all RECs composing an approved green product, 51% and above, into a PJM tracking system accessible by the MDPSC (i.e., PJM-GATS);
The MD PSC also directs suppliers offering green power products are required to include specific language in their marketing materials:
“The electricity delivered to your home is generated from a variety of sources, both renewable and nonrenewable. Energy from renewable resources, such as wind and solar, cannot be tracked directly into your home. Instead, the energy your home uses will support renewable energy sources through the purchase of renewable energy credits (“RECs”). A REC represents the environmental and social good associated with 1 megawatt hour of renewable electricity generation. RECs may be sold separately from the electricity itself, so the buyer of a REC may be different than the buyer of the electricity. In your contract, being marketed].
By purchasing RECs that qualify for Maryland’s renewable portfolio standard, you are supporting renewable energy development in the region. Increased demand for, and generation of, renewable electricity can help reduce conventional electricity generation from fossil fuels in the region where the renewable electricity generator is located. It may also have other environmental benefits such as reducing regional air pollution.”
Order (12/30/2024)
RM84 (07/11/2024)
9757 (10/09/2024)
(Petition of Commission Technical Staff for Green Product Pricing)
