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Staff of the Maryland PSC filed updates to its earlier-proposed green power regulations stemming from SB1. 

Under Staff’s revised proposed rules: (1) beginning January 1, 2025, an electricity supplier serving residential customers may not market electricity as green power unless the electricity supplier obtains approval from the MDPSC; (2) beginning January 1, 2025, a residential supplier may not market electricity as green power unless the MDPSC approves the price of the electricity being marketed as green power at an annual proceeding or a specific proceeding requested by the supplier; and (3) a renewable energy credit used to comply with these regulations must comply with COMAR 20.61.03.01(A), meaning the REC is recorded in PJM-GATS. A rulemaking session is scheduled for November 8.

Under Maryland PSC Staff updated draft from to implement new green power marketing rules established by SB1, retail electric generation suppliers (EGS’)  in Maryland would be prohibited from offering “green power” (as defined by statute) to residential customers unless a supplier receives specific PSC authorization to offer green power to residential customers — even if the supplier relies on the annual green power rate set by the PSC.

As background, SB 1 only allows retail suppliers to sell “green power” to residential customers at either: 1) a price set by the PSC generically, or 2) a price established through a company-specific petition from a retail supplier.

Under SB1, “green power” is defined as, “energy sources or renewable energy credits that are marketed as clean, green, eco–friendly, environmentally friendly or responsible, carbon–free, renewable, 100% renewable, 100% wind, 100% hydro, 100% solar, 100% emission–free, or similar claims.” [Public Utilities Article § 7-707(a)].

In Staff’s updated draft requires, starting January 1, 2025, that any retail supplier seeking to offer green power to residential customers would need to receive specific PSC approval for any residential green power offer (essentially, retail suppliers must receive general authority from the PSC to offer any residential green power, regardless of price).

In contrast, under Staff’s original filed draft rules, if a retail supplier marketed green power at the PSC-set price, no PSC approval of the supplier’s green power offering was needed, and no green power application from the supplier was required.

Staff’s latest draft lays out a list of information retail suppliers would be required to provide in applying at the PSC to offer any residential green power.

Under Staff’s most recent draft rules, retail electric suppliers would need to include in their application:

• A description of the price the customer will pay for the green power;
• Details on the RECs used for the green power offering, including fuel source and year created;
• Details on the “green power source” and percentage of the plan that is marketed as green power;
• A description of how the green power offer complies with state law and regulations;
• A list of the marketing channels that the supplier intends to use, such as mail, web/online, television, radio, magazine, newspaper, etc.
• Examples of the marketing materials to be used by the supplier, for each marketing channel that will be used;

As reported previously, Staff’s prior draft rule, a retail electric supplier’s price for a green power offer was to be limited to either the price annually set by the PSC, or a price set through a supplier-specific application at the PSC.

Staff’s proposed application requirements:

It is unclear whether a retail supplier seeking authorization for a supplier-specific price would be required to file a separate application with the PSC. The ambiguity arises because the price application file includes supplier information that is duplicative of the information required under the general application for authority to offer residential green power, as well as additional information.  

The green power price application would require retail suppliers to submit evidence of the market price for RECs that are like the RECs sought to be used by the supplier in the supplier’s product.

Note that Staff’s most recent filed draft adds two new requirements for supplier-specific green power price applications that were not in the prior draft.

Suppliers would be required to provide an “independent third- party audit” of the supplier’s costs, including the cost of the electricity supply, “as well as the applicant’s other costs”.

Suppliers would be required to show that the supplier, “has a significant long-term investment in renewable energy that meets the renewable energy portfolio standard under PUA §7-703.”

Staff’s latest draft also mandates that retail suppliers shall respond to data requests from the PSC’s Staff and the Office of People’s Counsel, as well as “other parties” to which the Commission has granted discovery rights.

Staff’s draft narrows the stated exception to the residential green power rules and reporting requirements.

In the updated draft, the exception from the residential green power rules and reporting requirements would only apply to an approved PSC green power offer from an “electric cooperative”.

In contrast, the original draft, the rules and reporting requirements would not have applied to those green power offers from electric companies offering SOS which have received PSC approval.

Note that the draft rules also exclude SMECO’s green power SOS option. Pepco and Delmarva, however, offer green power residential customers served under rate plug-in vehicle R-PIV rider.  These green power offerings from the utilities would no longer explicitly be exempted from the PSC’s rule because under statute, the term “electricity supplier” includes within its definition an SOS provider.

PSC Staff’s latest draft also still includes broad language that suggests that all green power plans  must have their RECs retired in GATS, which would limit the geographic areas from which non-residential green power plans could source RECs.  

See Docket link for all comments filed.
Staff Revised Green Product Offerings  
Rulemaking RM 84
RM84