News Stories

From the Order:
{***} During its 2024 session, the Maryland General Assembly passed Senate Bill 1 (“SB 1”). Among other issues, this bill imposed a price cap on residential electricity supply other than standard offer service (SOS) as of January 1, 2025. This portion of the statute was codified as Public Utilities Article (“PUA”) §7-510(d)(2). Beginning in 2025, residential electricity suppliers may not charge residential customers for electric supply (other than green power) in excess of the trailing 12-month average SOS rate. 

Similarly, SB 1 established a price cap on residential gas supply other than default gas commodity service offered by residential gas suppliers. As of January 1, 2025, residential gas suppliers must charge customers no more than the trailing 12-month average default gas commodity price. Both price caps do not apply to existing contracts entered into by residential customers before January 1, 2025. 

Currently, each electric and gas utility with residential choice has separate rates for residential SOS and residential default gas commodity service. The residential SOS rates on customer bills include transmission costs, taxes and other cost adjustments. The residential gas commodity service rates that appear on customer bills include taxes and cost adjustments.

In order to implement the retail supplier caps as set forth in PUA §§ 7-510(d)(2) and 7- 604.2(d)(1), the Commission directs all utilities to calculate the trailing 12-month average SOS and gas commodity rate as those rates appear on customers’ bills during the prior 12 months.

The Commission further directs each electric and gas utility with retail choice to submit its calculated 12-month trailing average, as well as its monthly updated 12-month average, to the Commission. Additionally, the Commission directs each utility to provide digital spreadsheets (e.g. Microsoft Excel) with all calculations unlocked directly to Commission Staff and the Office of People’s Counsel. Finally, the Commission directs each utility to post these rolling average rates in a prominent location on its website that retail suppliers can easily access.

The Commission directs that applicable utilities begin compliance with the directives set forth in the preceding paragraph no later than October 1, 2024, to allow retail suppliers multiple months of data prior to the effective dates of the price caps.

The Commission also directs each utility with retail choice in its service territory to report to the Commission the earliest date each month by which that utility can post on its website and file with the Commission its 12-month trailing average (e.g. the 5th of the month through the 4th of the following month). The Commission directs the utilities with retail choice to further inform the Commission the location on its website that will include these rolling averages. Based on these filings, the Commission will determine the appropriate date for monthly reporting. {***}

PC64
(Residential 12-Month Trailing Retail Supply Price Caps – implementation of Senate Bill 1 Price Caps