§ 7-707

Maryland § 7-707

• Jurisdiction: Maryland
• Article gpu: Public Utilities
• Title: 7

Text

(a) In this section, “green power” means energy sources or renewable energy credits that are marketed as clean, green, eco–friendly, environmentally friendly or responsible, carbon–free, renewable, 100% renewable, 100% wind, 100% hydro, 100% solar, 100% emission–free, or similar claims.

(b) This section does not apply to:

(1) the Department of General Services when the Department of General Services sells energy under § 7–704.4 of this subtitle;

(2) a community choice aggregator under § 7–510.3 of this title; or

(3) an electricity supplier when supplying electricity to commercial retail electric customers.

(c) An electricity supplier that supplies electricity to residential retail electric customers may not market electricity as green power unless:

(1) the percentage of the electricity being offered, or the equivalent number of renewable energy credits associated with the electricity being marketed as green power, that is eligible for inclusion in meeting the renewable energy portfolio standard equals or exceeds the greater of:

(i) 51%; or

(ii) 1% higher than the renewable energy portfolio standard for the year the electricity is provided to the customer;

(2) the Commission approves the price of the electricity being marketed as green power in accordance with subsection (d) of this section; and

(3) the electricity supplier submits an application to the Commission that:

(i) describes the electricity being marketed as green power, including the green power source and percentage of the electricity that is green power;

(ii) describes how the green power complies with State law and regulations; and

(iii) includes any other information the Commission considers necessary.

(d) (1) The price approved by the Commission under subsection (c)(2) of this section shall be determined through:

(i) a proceeding held in accordance with paragraph (2) of this subsection; or

(ii) a proceeding held in accordance with paragraph (3) of this subsection.

(2) (i) Each year the Commission shall hold a proceeding to set a price per megawatt–hour for electricity marketed as green power under this section that may not be exceeded by an electricity supplier except as provided in paragraph (3) of this subsection.

(ii) Subject to paragraph (4) of this subsection, the price set by the Commission under subparagraph (i) of this paragraph may:

1. exceed the maximum price per megawatt–hour that is authorized under § 7–510(d)(2)(i) of this title; and

2. differ based on the amount and source of the electricity generation.

(iii) During a proceeding held under subparagraph (i) of this paragraph, the Commission:

1. shall consider:

A. the price of the energy purchased, including the total cost of the renewable energy credits;

B. the amount of electricity that is eligible for inclusion in meeting the renewable energy portfolio standard;

C. the state in which the electricity was generated; and

D. applicable market data; and

2. may consider whether the purchase of renewable energy credits was bundled with a power purchase agreement from the energy sources associated with the credit.

(3) (i) On request by an electricity supplier, the Commission shall hold a proceeding to set a price per megawatt–hour for electricity marketed as green power for that electricity supplier.

(ii) Subject to paragraph (4) of this subsection, at a proceeding held under this paragraph the Commission may set a price per megawatt–hour that is higher than the price determined in the proceeding held under paragraph (2) of this subsection for an electricity supplier if:

1. the electricity supplier demonstrates to the Commission’s satisfaction, based on an independent third–party audit, that the actual cost to the electricity supplier for the generation or supply of electricity exceeds that of the price determined through the proceeding held in accordance with paragraph (2) of this subsection;

2. the increased price reflects only the cost of the electricity marketed as green power and is not associated with any of the electricity supplier’s other costs; and

3. the electricity supplier demonstrates to the Commission’s satisfaction that the electricity supplier has a significant long–term investment in renewable energy that meets the renewable energy portfolio standard under § 7–703 of this subtitle.

(iii) During a proceeding held under this paragraph, the Commission shall consider:

1. whether the purchase of renewable energy credits was bundled with a power purchase agreement from the energy sources associated with the credit;

2. the price of the energy purchased, including the total cost of the renewable energy credits or power purchase agreements;

3. the amount of electricity that is eligible for inclusion in meeting the renewable energy portfolio standard;

4. the state in which the electricity was generated; and

5. applicable market data.

(4) (i) A price approved by the Commission under this subsection may not exceed 150% of the maximum price per megawatt–hour that is authorized under § 7–510(d)(2)(i) of this title unless the Commission determines that the actual cost of the green power exceeds that amount.

(ii) Within 120 days after approving a price for green power that exceeds 150% of the maximum price per megawatt–hour that is authorized under § 7–510(d)(2)(i) of this title, and annually for as long as the price exceeds that amount, the Commission shall submit a report to the General Assembly, in accordance with § 2–1257 of the State Government Article, that:

1. demonstrates that the approved price represents only the actual price of the green power; and

2. includes the Commission’s order authorizing the price of the green power.

(iii) If the Commission has approved for 3 consecutive years a price for green power that exceeds 150% of the maximum price per megawatt–hour that is authorized under § 7–510(d)(2)(i) of this title, the Commission shall include in the annual report required under subparagraph (ii) of this paragraph:

1. information on market conditions that necessitate the approved price of the green power that exceeds 150% of the maximum price per megawatt–hour that is authorized under § 7–510(d)(2)(i) of this title; and

2. a recommendation of whether to increase the limitation on the maximum price of green power above which the Commission is required to make a determination under this paragraph.

(5) The Commission:

(i) shall annually review a price approved under paragraph (3) of this subsection; and

(ii) may, on its own initiative, or on petition by the Office of People’s Counsel, require an electricity supplier offering green power under a price established under paragraph (3) of this subsection to demonstrate that the price continues to meet the requirements of paragraph (3) of this subsection.

(e) (1) On and after January 1, 2025, an electricity supplier shall purchase renewable energy credits for each year the electricity supplier offers green power for sale to residential retail electric customers.

(2) A renewable energy credit an electricity supplier purchases under paragraph (1) of this subsection shall be retired in a PJM Environmental Information Services, Inc., generation attribute tracking system reserve subaccount accessible by the Commission.

(f) (1) This subsection does not apply to:

(i) the Department of General Services when the Department of General Services sells energy under § 7–704.4 of this subtitle; or

(ii) a community choice aggregator under § 7–510.3 of this title.

(2) An electricity supplier that claims in the electricity supplier’s marketing of electricity to residential retail electric customers that the customer will be purchasing green power shall include the following disclosure or a similar disclosure approved by the Commission:

“We deliver energy through the purchase of Renewable Energy Credits (RECs). A REC represents the social good that accompanies 1 megawatt–hour of renewable electricity generation. RECs may be sold separately from renewable electricity itself. Renewable electricity and RECs may be sold to different entities. The purchase of a REC does not indicate that renewable electricity itself has been purchased by the entity that purchased the REC.”.

(g) In addition to the disclosure required under subsection (f) of this section, the Commission shall adopt regulations that require an electricity supplier, other than the Department of General Services when the Department of General Services sells energy under § 7–704.4 of this subtitle or a community choice aggregator under § 7–510.3 of this title, that offers green power for sale to residential retail customers to include in the electricity supplier’s marketing materials a disclosure, written in plain language, that explains:

(1) what the customer will actually be paying for when the customer purchases green power from the electricity supplier;

(2) how the electricity that the customer has purchased is generated;

(3) how the green power will benefit the environment;

(4) the percentage of electricity that would be provided by the electricity supplier that is eligible for inclusion in meeting the renewable energy portfolio standard; and

(5) the state in which the electricity was generated.

(h) The Commission, in its discretion, may determine whether an electricity supplier is marketing electricity in accordance with this section.