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Overview of key effective dates of new retail energy law:

1. This Act shall take effect July 1, 2024.
2. On or before December 31, 2024, among other things, the Public Service Commission shall: 

• develop salesperson/vendor application requirements;
• develop a training and education program for any entity or individual that is licensed by the Commission as an electricity supplier, a gas supplier, an energy salesperson, or an energy vendor; and
• report to the General Assembly on the status of the development of the training and education.

1. Beginning July 1, 2025, a person may not engage in the business of an energy salesperson/vendor in the state unless the person holds a license issued by the commission. A licensed energy salesperson may offer or sell electricity supply agreements or gas supply agreements to customers in the state only if the energy salesperson is associated with a licensed electricity supplier or licensed gas supplier, respectively. These licenses must be renewed every three (3) years.
2. Electric/Gas Residential Contracts §§ 7–510(d) 30 and 7–604.2(c) of the Public Utilities Article, as enacted by Section 1 of this Act related to residential energy supply contracts, shall be construed to apply only to electricity supply agreements and gas supply agreements entered or renewed on or after January 1, 2025.  Note that his Act shall be construed to apply only prospectively and may not be applied or interpreted to have any effect on or application to any electricity supply agreements or gas supply agreements that is in effect on or before December 31, 2024.
3. As previously reported, the provisions of this new law generally apply to residential service offerings only. And, unless noted otherwise noted in the law, none of the provisions discussed below apply to municipal aggregations or the supplier of a municipal aggregation.

Recap of highlights of this new law include the following:

Residential Contract Restrictions Include:  

• The bill provides that a residential electricity supplier may only offer electricity, other than green power as defined below, “at a price that does not exceed the trailing 12–month average of the electric company’s standard offer service rate in the electric company’s service territory as of the date of agreement with the customer[.]”
• Similarly, a retail supplier may only offer gas service only at a price that does not exceed the trailing 12–month average of the gas company’s default gas commodity service in the gas company’s service territory as of the date of the agreement with the customer.
• Also, residential plans may not exceed 12 months in length.
• Non-green plans may be auto renewed, but renewals are subject to the pricing limits detailed above.
• Variable rates are banned, with the ban excluding rates with seasonal variation or which vary based on therms consumed in a billing period.
• A residential retail electric supplier would be permitted to market a green product, defined below, without being subject to the SOS-based price cap, but the supplier’s price under the green plan would need to be pre-approved by the Maryland Public Service Commission.
• Among other things, a residential green power plan 
• may not be automatically renewed;
• must be, based on supply or RECs, either 51% green; or 1% higher than the renewable energy portfolio standard for the year the electricity is provided to the customer; and
• must source RECs from the PJM region on a staggered schedule, from a 0% requirement for the 12-month period starting July 1, 2025, increasing to at least 10% for the 12-month period starting July 1, 2027, and further increasing each year until the bill requires that, beginning July 1, 2035, at least 50% of the RECs shall be generated in the PJM region.

Sales Contractors/Salesperson & Vendor Licensing Requirements:

• The new law requires that beginning July 1, 2025, a person may not engage in the business of an “energy salesperson” in the state unless the person holds a license issued by the PSC.  The bill would also require entities which serve as sales contractors or subcontractors of retail suppliers to be licensed, by requiring an “energy vendor” to be licensed by the PSC.
• “Energy salesperson” means an individual who is licensed by the commission to sell: (i) electricity or electricity supply services to residential retail electric customers on behalf of an electricity supplier as an employee or agent of the electricity supplier; or (ii) gas or gas supply services to residential retail gas customers on behalf of a gas supplier as an employee or agent of the gas supplier.
• “Energy vendor” means a person that has a contract or subcontract to provide energy sales services to an electricity supplier or a gas supplier that provides electricity supply services or gas supply services, respectively, to a residential customer.
• A licensed energy salesperson may offer or sell electricity supply agreements or gas supply agreements to customers only if the energy salesperson is associated with a licensed electricity supplier or licensed gas supplier.
• The MD PSC is authorized to require that an energy salesperson must post a bond or other similar instrument if, in the Commission’s judgment, the bond or similar instrument is necessary to ensure an energy salesperson’s financial integrity.

Ban Salesperson Commission Payments:

• Residential retail suppliers, “may not pay a commission or other incentive–based compensation to an energy salesperson for enrolling customers.”

Residential Purchase of Receivable (POR) Ban:

• The new law prohibits POR for residential receivables. Note that his provision does not apply to municipal or government aggregations. 

Marketing Restrictions Include:

• Among other thing the new law authorizes the PSC to require or prohibit the use of specific language in a residential energy retailer’s marketing materials, disclaimers, disclosures, and legal documents, including requiring or prohibiting the use of specific language based on service or product type.

The PSC may also require a residential energy retailer to post notices and disclosures required under the bill on the retailer’s website.

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