The Commission has issued an Order in response to a Staff Request for Hearing as to whether curtailment service providers (CSPs) are within the statutory definition of “electricity suppliers.” The Commission decided that, "the services CSPs provide in Maryland fall within the definition of electricity supply services contained in PUA § 1-101(j). The term “electricity supply services” is not defined in the statute, but it is included in § 1-101(j) as an addition to 'electricity' as well as 'competitive billing services' and 'competitive metering services.' While the Commission agrees that demand response does not constitute electricity, the aggregation of demand response resources is a service directly related to and comparable with the supply of electricity. As Staff correctly observed, demand response can act as a substitute for electric supply." The Commission reasoned that, "although they are not selling electricity as such, CSPs are selling a service that aggregates, and secures payment for, an electricity resource that is treated comparably in the wholesale electricity market with electric generation. Accordingly, the Commission finds that CSPs do provide electricity supply services which they purchase from Maryland customers and sell to PJM, and therefore that they must obtain electric supplier licenses in order to do business in Maryland." Staff is to file proposed amendments to the electric supplier license application form to adapt it to CSPs, by September 30, 2011. Staff is also directed to convene a stakeholder collaborative to examine issues associated with demand response reporting and CSPs and file a report with the Commission by December 29, 2011. The full text of the Order is available on the NEM Website.

Commission Staff will convene a meeting on September 26, 2011, at 10:30AM to discuss retail market issues. The meeting will be held at the Commission's Albany offices.

Issues for discussion at the meeting include:
• Implementation of Contest Period
• Authorization of Customer Enrollments
• Validation of Customer Block
• Slamming Investigations – Liability and Penalty Treatment
• Definition of Direct Customer
• Electronic/Social Media Applications – Marketing Standards and Customer Privacy
• Contract Renewal – Customer Affirmation
• EDI
• Power to Choose Website

The full text of the Notice of Meeting is available on the NEM Website.

In December 2009 the Commission approved a settlement providing for Columbia Gas' procurement of natural gas through an auction method, initially to be a standard service offer (SSO) structure, and then subsequently by a standard choice offer (SCO) structure. In response to a Columbia filing in 2011 on implementation of the SCO, OCC filed objections to the SCO auction and requested that the Commission suspend Columbia's proposal to conduct an SCO auction in favor of conducting an SSO auction. The Commission issued an Order concluding that there is, "sufficient evidence to show that the anticipated benefits from the SCO auction support the continuation of the stipulation approved in this case on December 2, 2009, which provides for the transition from an SSO to an SCO in 2012. Therefore, Columbia should proceed with its transition to an SCO."

The Commission did require, "Columbia and the marketers to work with Staff to develop information on SCO customer migration from the SCO to the Choice program, including the number of customers that chose fixed price contracts, and such other information that Staff determines will assist the Commission in evaluating the SCO program. . . . In addition, marketers must provide Staff a detailed explanation of the types of products and services offered to customers that provide added value to participating in the Choice program." Staff shall file a report of this information in September 2013.

The full text of the Order is available on the NEM Website.

The Commission adopted electric code of conduct regulations in 2000. Last year, it issued an ANOPR to reconsider the code in view of changes that have occurred in the marketplace since that time. The Commission has now issued a proposed rulemaking that would make certain substantive and organizational changes to the regulations. The Commission proposes to divide the rules into six subject matter categories: 1) non-discrimination requirements; 2) customer requests for information; 3) prohibited transactions and activities; 4) accounting and training requirements; 5) dispute resolution procedures; and 6) penalties.

Substantive changes to the rules include:
1) requiring utility representatives to refer customers to the Commission’s retail choice website and offer to provide customers with a list of current suppliers;
2) expressly prohibiting the utility from financially subsidizing an affiliated supplier;
3) prohibiting the transfer of any regulated utility assets to an affiliated supplier at less than market value;
4) requiring a supplier to enter into a licensing agreement with a utility before using the utility’s service mark or trademark and to use a prominent disclaimer advising that the supplier is not the same company as the utility and that a customer need not buy the supplier’s services or products in order to continue receiving services from the utility;
5) prohibiting a supplier (affiliated or non-affiliated) from having the same or substantially similar name or fictitious name as the utility or its corporate parent; and
6) prohibiting joint marketing, sales and promotional activities by utilities and affiliate suppliers unless the joint marketing, sales, or promotional activities are offered to all suppliers in the same manner under similar terms and conditions.

Comments are due 45 days after publication of the NOPR in the Pennsylvania Bulletin. The full text of the NOPR is available on the NEM Website.