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Excerpts from the Maryland Public Service Commission (PSC) Decision:

{***} “As stated in Order No. 91464, the Commission interprets SB 1 to encourage procurement of verifiable RECs within PJM markets. In addition, Staff indicated that it does not know if national RECs can be verified with as much certainty as RECs retired within a PJM-specific tracking system. For these reasons, the Commission restates and further clarifies that all retail electric suppliers are directed to retire all RECs comprising an approved green product into a PJM tracking system accessible by the Commission. In light of the clarification provided above, the Commission removes the language, “The remaining [Y]% of RECs are [the specific product being marketed],” from the disclosure required in accordance with PUA § 7-707(f) and (g), and instead directs all retail electric suppliers offering green products for sale to include the following statement in its 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, [X]% of the RECs qualify for Maryland’s renewable portfolio standard. 

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.

In response to the Supplier Coalition’s concern regarding the process utilized by the Commission in determining the 2025 green product price, the Commission agrees with Staff that nothing precluded the Supplier Coalition from presenting evidence from subject matter experts on applicable market data. The Commission notes further that PUA §7-707(d)(3) provides a means for suppliers to seek the Commission’s authorization to charge a price higher than the established baseline. As noted in Order No. 91464, the Commission’s directive was “intended to reflect reasonable, low-risk considerations as a starting point for the newly enacted green power pricing requirements,” and future annual proceedings required under PUA § 7-707(d)(2) “will allow the Commission and interested parties to review and adjust in accordance with lessons learned, price fluctuations, and market indicators.” {***}

As reported previously, on January 16, 2025, OPC filed a Request for Clarification for Green Product Pricing.9 On January 24, 2025, The Supplier Coalition filed an Application for Clarification and Reconsideration of Order No. 91464.10 Staff filed Comments on the Green Product Pricing Requests for Clarification on January 31, 2025.

OPC requested that the Commission clarify whether a retail supplier may include RECs that do not qualify for Maryland’s RPS, such as national RECs, in a green product offer.14 OPC recommends that, if retail suppliers may not include national RECs, the Commission should strike the text, “The remaining [Y]% of RECs are [the specific product being marketed],” from the marketing disclosure required under PUA § 7-707(f) to ensure retail supplier marketing materials provide residential customers with clear and accurate information.

The Supplier Coalition’s request aligns with OPC’s in that it also contends that suppliers may offer green products that consist of 51 percent green products backed by RPS-compliant RECs retired into a PJM tracking system, and up to 49 percent national RECs, but that Order No. 91464 as it stands requires clarification.

Clarifying Order   (Order 91549) (03/04/2025)
9757  
(Petition of Commission Technical Staff for Green Product Pricing)