Utility Restructuring

Utility Restructuring

Standard Offer Service Update
9/16/03

power linesThe Maryland Energy Administration is actively involved in the litigation activities in the Standard Offer Service Case before Maryland's Public Service Commission. In the Phase I Settlement of that case, MEA was able to negotiate a continuation of standard offer electric service to be provided through Maryland's utilities, and a real time, hourly priced service, in addition to the retail supply services to be offered from the deregulated market. Throughout this case, MEA's representation of Maryland's State agencies has been vital, because the agencies spend millions of dollars annually on the purchase of electricity, and depend on reliable and stable electric service. The Phase I Settlement protects ratepayers from California like price fluctuations during the transition to competition, while encouraging the growth of retail markets in electricity. Additionally, the Settlement includes an MEA sponsored provision to include a green energy component to default service, assuring that standard electric service will be environmentally sound.

The Public Service Commission is currently reviewing the Phase II Settlement of the Standard Offer Service case, which addresses the implementation details of default electric service under deregulation. In Phase II, MEA helped draft the model energy suppliers RFP, model utility bid plans, supplier credit mechanisms, and full requirements service agreement. MEA's careful attention to these implementation documents will assure that the goals of Phase I will be realized. The final Settlement will provide Maryland's ratepayers with stable and reliable electric service, while serving to foster a robust competitive market in electricity.

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