Maryland announces a return to dual billing for residential customers. As part of its implementation of SB1, the Maryland PSC issued an order on December 30, 2024, determining the following, applicable only to residential contracts for gas and electric: (1) dual billing for residential contracts is the only feasible interim methodology until utilities can implement a non-POR UCB mechanism; (2) gas and electric suppliers must enroll all new residential customers after January 1, 2025 under dual billing; (3) all existing variable price, variable term, and automatic renewal month-to-month residential customer contracts must end no later than February 28, with customers returned to default service or enrolled on a new compliant contract; (4) existing residential fixed term and fixed price contracts will no longer be billed through POR UCB after December 31, 2025; and (5) suppliers and utilities must “negotiate in good faith as to whether the post-POR future in Maryland utility billing will be Utility Consolidated Billing, Supplier Consolidated Billing (“SCB”) or Dual Billing.” On the issue of “incidental” residential meters (i.e., commercial customers with a residential meter on the account), the MDPSC said this determination should be based on solely on the utility tariff classification and that a residential customer is only those customers classified as residential by the utilities.
Changes to Massachusetts Clean Peak Energy Standard become permanent. The Department of Energy Resources in Massachusetts announced on December 23, 2024, that changes earlier in the fall to the Clean Peak Energy Standard (CPS) implemented on an emergency basis were now permanent. As a reminder, the rulemaking makes the following changes to the CPS regulations: (1) the ACP rate will remain $45 through Compliance Year 2025. Starting Compliance Year 2026, the ACP rate will be $65 through Compliance Year 2032. Thereafter, the ACP rate will be $45 and will be fixed at that price for the remainder of the program; (2) DOER has removed the initial 30% procurement target and market supply mechanism by which DOER might increase subsequent procurement targets are both removed. DOER will also establish a date by which it will publish a staggered procurement schedule; (3) DOER changed how long retail electric suppliers may bank a CPEC from three years to two years; and (4) DOER changed the Summer Seasonal Peak Period from 3:00 – 7:00 p.m. ET to 4:00 – 8:00 p.m. ET to reflect shifting of summer peak over time.
Ohio grants waiver on implementation of natural gas billing changes for supplier customers. The PUC of Ohio granted a motion for a limited waiver on December 19, which had been filed on December 11 by RESA. Implementation of Ohio Adm. Code 4901:1-29-12 (related to natural gas customer billing and payments) is now delayed in part until April 1, 2025. RESA had said that suppliers and natural gas utilities have made progress updating the necessary electronic business transaction protocols to comply with the amendments to Ohio Adm. Code 4901:1-29-12(B), but that “…additional time is needed to ensure full compliance with the amendment. RESA notes that it requires substantial operational and internet technology work to coordinate, test, and implement. RESA emphasizes that there is no standard electronic data interchange protocol across all Ohio LDCs which in turn requires an individualized approach to supplier coding. RESA warns that compliance in some LDC territories will be impossible if the waiver deadline is not moved, and, in other territories, there will be substantial risk of billing errors. RESA states that it and other stakeholders have agreed to meet monthly with the LDCs and Staff until full compliance with the rule is achieved.”
Connecticut approves changes to community solar program. PURA in Connecticut issued a final decision on December 11, approving updates to the Shared Clean Energy Facility Program (SCEF Program) and setting the SCEF price caps and bid preferences for project applications to be received in the Year 6 procurement. PURA also raised the bid preference for solar canopy projects to 40%, but only if 100% of the generation footprint is included on the solar canopies. PURA clarified that (1) solar canopy SCEF projects can bid above the price cap to the point where the evaluated price, incorporating the bid preference, does not exceed the price cap and (2) the award price equals the bid price, not the evaluated price. In practice, this means that the ceiling on a solar canopy bid (award) price is $221.67 per MWh.
Multi-state coalition files FERC complaint over transmission costs. A coalition of C&I customer representatives and consumer advocates in a multi-state coalition filed a complaint with the Federal Energy Regulatory Commission on December 19, alleging, according to a press release from the Maryland Office of People’s Counsel, “that the failure of regional transmission organizations—including PJM Interconnection, LLC, the regional transmission operator for Maryland—to require planning for local transmission results in unneeded projects, high prices for consumers, and a transmission system that fails to address the challenges of a changing energy landscape…FERC’s rules have a big loophole that allows lower-voltage transmission line projects that utilities deem “local” to be built with little to no oversight and without competition to select the most cost-effective developer.”
Ohio approves expanded definition of green energy. On December 11, the Ohio legislature enacted House Bill HB308, which amends state law to include energy generated by “nuclear reaction” and “natural gas as a resource” as “green energy.” The legislation appears aimed at encouraging developers of small modular nuclear reactors and other advanced nuclear energy projects to invest in Ohio; as is noted by the non-partisan legislative analysis of the bill provided by Ohio legislative staff, “green energy” is not a term used in state law so the actual impact of this legislation is unclear.
In Brief: An end-of-year review from the Public Utilities Commission of Ohio highlighted enforcement actions against a number of retail suppliers and also touted the new “Supplier Enforcement Actions” page on its website…in a similar review, on the other hand, the Pennsylvania PUC chose to speak supportively of retail competition: “In the energy market, the PUC continued to support robust retail choice, resulting in cost-saving opportunities for consumers. By year-end, nearly 1.6 million Pennsylvanians – representing over 64% of total electricity load – chose competitive electricity suppliers, according to the Commission’s Office of Competitive Market Oversight.”…the Maine PUC approved the merger of natural gas utility Bangor Gas into Unitil, on December 18… New York utility O&R filed an update to its gas POR discount rates on December 4 (12/4/24). Effective January 1, 2025, the POR discount percentage will be set at 0.579%… PUCO issued an order approving FirstEnergy’s motion to withdraw its proposed Energy Security Plan V and revert to ESP IV, on December 18…
Commission Comings-and-Goings: The Arizona Corporation Commission swore in new commissioners on January 6. Commissioner Lea Márquez Peterson began her second elected term on the commission. Commissioner Rachel Walden, and Commissioner Rene Lopez took their oaths of office to begin their first terms. Additionally, Commissioner Kevin Thompson was unanimously elected as new Chairman and the AZCC unanimously appointed Commissioner Nick Myers as Vice Chairman. On December 19, the Pennsylvania PUC announced the appointment of Kelly Monaghan, currently the chief of the Bureau of Audits, as the new deputy executive director of the PAPUC.
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