# COMAR Title 20 — Public Service Commission

## Subtitle 52 — Electric Standard Offer Service

### Chapter 01 — General Regulations

**Authority:** Public Utilities Article, §§2-113, 2-121, 5-101, and 7-510, Annotated Code of Maryland

**Administrative History:** Effective date: June 7, 2004 (31:11 Md. R. 857)

#### Regulation .01 Scope.

*COMAR 20.52.01.01*

A. This subtitle applies to an investor-owned electric company or other entity directed or authorized by a Public Service Commission order to provide electricity supply and electricity supply service.

B. This subtitle does not apply to electric cooperatives or municipal electric companies.

#### Regulation .02 Definitions.

*COMAR 20.52.01.02*

A. In this subtitle, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Commission” means the Public Service Commission of Maryland.

  (2) “Customer” has the meaning stated in Public Utilities Article, §7-501, Annotated Code of Maryland.

  (3) “Electric company” has the meaning stated in Public Utilities Article, §1-101, Annotated Code of Maryland.

  (4) “FERC” means the Federal Energy Regulatory Commission.

  (5) “HPS” means hourly priced nonresidential electricity service provided by an investor-owned electric company.

  (6) “LMP” means locational marginal price.

  (7) “PJM” means the PJM Interconnection, LLC.

  (8) “Standard offer service” or (SOS) has the meaning stated in Public Utilities Article, §7-501, Annotated Code of Maryland.

  (9) “Type I” means standard offer service provided by a utility under Public Utilities Article, §7-510(c), Annotated Code of Maryland, to certain commercial customers through a Commission-approved rate schedule.

  (10) Type II.

    (a) “Type II” means standard offer service offered by a utility to nonresidential customers ineligible for Type I service with a PJM capacity peak load contribution of less than 600 kilowatts (kW).

    (b) “Type II” does not include nonresidential electricity supply service provided to a customer ineligible for Type I service with a PJM capacity peak load contribution of less than 600 kilowatts (kW) receiving electric supply service under an existing special electric supply contract with a utility.

  (11) Type III.

    (a) “Type III” means a large customer taking regulated electric supply service from a utility available to a nonresidential customer ineligible for Type I or Type II service.

    (b) “Type III” does not include a large customer with a special electric supply contract with a utility or excluded by a Commission order.

  (12) “Utility” means an electric company that is investor owned.

#### Regulation .03 Standard Offer Service Obligation.

*COMAR 20.52.01.03*

A. A utility or any other Commission-authorized entity shall provide SOS to any eligible customer choosing SOS, whose electric service has not been denied or terminated under COMAR 20.31, COMAR 20.50.04, or the utility's approved tariff.

B. If a customer meets any of the criteria under the Public Utilities Article, §7-510(c)(2), Annotated Code of Maryland, the customer is considered to have chosen SOS.

### Chapter 02 — Standard Offer Service

**Authority:** Public Utilities Article, §§2-113, 2-121, 5-101, and 7-510, Annotated Code of Maryland

**Administrative History:** Effective date: June 7, 2004 (31:11 Md. R. 857)

#### Regulation .01 Provision of Residential Standard Offer Service Required.

*COMAR 20.52.02.01*

A. This regulation does not apply to residential SOS before the service periods specified in §C of this regulation.

B. A utility may deny residential SOS under COMAR 20.50.04.01-2 or the utility's tariffs.

C. A utility shall provide residential SOS for the following specified time periods:

  (1) Baltimore Gas and Electric Company from July 1, 2006 through May 31, 2010;

  (2) Delmarva Power & Light Company from July 1, 2004 through May 31, 2008;

  (3) Potomac Electric Power Company from July 1, 2004 through May 31, 2008;

  (4) The Potomac Edison Company doing business as (d/b/a) Allegheny Power from January 1, 2009 through December 31, 2012.

D. Extension of SOS. The Commission may extend a utility obligation to provide SOS under Public Utilities Article, §7-510(c)(3), Annotated Code of Maryland.

#### Regulation .02 Standard Offer Service — Small Commercial Customers.

*COMAR 20.52.02.02*

A. This regulation does not apply to electric supply service provided by a utility prior to the service periods specified in §§B and C of this regulation.

B. Type I—Small Commercial Customer.

  (1) A utility shall provide Type I SOS to a customer for the following specified time periods:

    (a) Baltimore Gas and Electric Company from July 1, 2004 through May 31, 2008;

    (b) Delmarva Power & Light Company from June 1, 2004 through May 31, 2008;

    (c) Potomac Electric Power Company from July 1, 2004 through May 31, 2008; and

    (d) The Potomac Edison Company doing business as (d/b/a) Allegheny Power from January 1, 2005 through December 31, 2008.

  (2) A utility shall offer Type I SOS as ordered by the Commission to all small commercial customer classes.

C. Type II—Commercial Customer.

  (1) A utility shall offer Type II SOS to a commercial customer as defined under COMAR 20.52.01.02B(11).

  (2) A utility shall provide Type II SOS to customers for the following specified time periods:

    (a) Baltimore Gas and Electric Company from July 1, 2004 through May 31, 2006;

    (b) Delmarva Power & Light Company from June 1, 2004 through May 31, 2006;

    (c) Potomac Electric Power Company from July 1, 2004 through May 31, 2006; and

    (d) The Potomac Edison Company doing business as (d/b/a) Allegheny Power from January 1, 2005 through December 31, 2006.

D. Extension of SOS. The Commission may extend a utility obligation to provide SOS under Public Utilities Article, §7-510(c)(3), Annotated Code of Maryland.

#### Regulation .03 Large Customer — Electric Supply Service.

*COMAR 20.52.02.03*

A. This regulation does not apply to electric supply service provided by a utility before the service periods stated in §B of this regulation.

B. A utility shall provide Type III large customer service to customers for the following specified time periods:

  (1) Baltimore Gas and Electric Company from July 1, 2004 through May 31, 2005;

  (2) Delmarva Power & Light Company from June 1, 2004 through May 31, 2005;

  (3) Potomac Electric Power Company from July 1, 2004 through May 31, 2005; and

  (4) The Potomac Edison Company doing business as (d/b/a) Allegheny Power from January 1, 2005 through December 31, 2005.

#### Regulation .04 Hourly Priced Electric Supply Service.

*COMAR 20.52.02.04*

A. A utility shall offer hourly priced nonresidential electric supply service to all nonresidential customers ineligible for Type I or Type II SOS, excluding special generation contract customers.

B. A utility shall provide hourly priced service beginning with the time periods provided for Type III service in Regulation .03 of this chapter.

C. A utility may not change or alter tariff rules, terms, and conditions for HPS under §B of this regulation for a period of at least 2 years.

D. The rate for HPS shall include:

  (1) One of the following:

    (a) The PJM hourly LMP for energy; or

    (b) If PJM alters its pricing methods, the nearest equivalent to LMP;

  (2) Charges associated with PJM capacity obligation;

  (3) FERC-approved:

    (a) Transmission rates;

    (b) Ancillary services;

    (c) Energy losses;

    (d) Administrative costs;

    (e) Any other FERC approved or PJM charges and costs directly related to the utilities' hourly priced service;

  (4) Costs required to meet statutory renewable requirements;

  (5) Any other price elements directly related to the service as approved by the Commission;

  (6) Taxes;

  (7) An applicable administrative charge intended to recover the utility's verifiable and prudently incurred costs; and

  (8) A Commission-approved reasonable return.

#### Regulation .05 Other Periods of Electric Service.

*COMAR 20.52.02.05*

For periods other than those identified in Regulations .01—.03 of this chapter, the Commission may authorize the provision of SOS, default service, Type II service, Type III service, or electric supply provider of last resort service to the customer classes described in this chapter.

### Chapter 03 — Transfers Of Service

**Authority:** Public Utilities Article, §§2-113, 2-121, 5-101, and 7-510, Annotated Code of Maryland

**Administrative History:** Effective date: June 7, 2004 (31:11 Md. R. 857)

**Administrative History:** Regulation .01 amended effective February 4, 2013 (40:2 Md. R. 73)

**Administrative History:** Regulation .02 amended effective February 4, 2013 (40:2 Md. R. 73)

**Administrative History:** Regulation .03B, C amended effective February 4, 2013 (40:2 Md. R. 73)

**Administrative History:** Regulation .04 amended effective February 4, 2013 (40:2 Md. R. 73)

#### Regulation .01 Customer Changes of Service Providers.

*COMAR 20.52.03.01*

A. A customer may move between SOS or HPS and competitive electricity supply service.

B. A customer may not be charged a fee for switching between SOS or HPS and competitive electricity supply.

C. Except as provided by an order of the Commission, a utility may not impose a minimum contract term for the provision of electricity supply service under this subtitle.

#### Regulation .02 Notice of Transfer to Standard Offer Service.

*COMAR 20.52.03.02*

A. Existing Customers. If an existing utility customer does not select a competitive electricity supplier to provide electricity supply service, the customer shall receive standard offer service under this subtitle until that choice is made in accordance with §C of this regulation.

B. New Customer. A customer establishing a new service, after the service periods specified in COMAR 20.52.02, shall receive SOS until the customer affirmatively selects a competitive electricity supplier.

C. Transfer Rules.

  (1) If a customer or the customer’s competitive supplier requests SOS, 12 or more days before the customer's next regularly scheduled meter read date, the utility shall place the customer on SOS on the customer's next regularly scheduled meter read date.

  (2) If a customer or the customer’s competitive supplier requests SOS, less than 12 days before the customer’s next regularly scheduled meter read date, the utility shall transfer the customer to SOS on the subsequent scheduled meter read date after the date of the request.

  (3) If a customer is subject to an involuntary transfer to SOS, the customer shall receive SOS effective on the date on which PJM transfers responsibility for supplying that customer's electricity to the utility.

#### Regulation .03 Notice of Transfer From Standard Offer Service.

*COMAR 20.52.03.03*

A. When a customer receiving SOS chooses electricity from a competitive electricity supplier, the competitive electricity supplier shall notify the utility.

B. The notice required under §A of this regulation shall comply with the requirements of COMAR 20.53 and the utility's approved supplier coordination tariffs.

C. Transfer Rules.

  (1) When a competitive electricity supplier provides the transfer notice required under §A of this regulation, 12 or more days before a customer's next regularly scheduled meter read date, the utility shall transfer the customer to the competitive electricity supplier on the next regularly scheduled meter read date after the notice.

  (2) When a competitive electricity supplier provides the transfer notice, required under §A of this regulation, less than 12 days before a customer's next regularly scheduled meter read date, the utility shall transfer the customer to the competitive electricity supplier on the subsequent scheduled meter read date after the notice.

#### Regulation .04 Hourly Priced or Competitive Service — Selection or Transfer.

*COMAR 20.52.03.04*

A. Utility Fixed Price or Variable Price Service Customers.

  (1) If a customer eligible for does not select or have a competitive electricity supplier, a utility shall provide HPS service to the customer.

  (2) If a customer eligible for HPS selects a competitive electricity supplier, the competitive electricity supplier shall provide the utility notice of the selection in a manner conforming to the requirements of the applicable utility’s supplier coordination tariff and COMAR 20.53.06.05.

B. Failure of Competitive Electricity Supplier to Deliver.

  (1) If a competitive electricity service customer is eligible for HPS and the competitive electricity service supplier fails to deliver power as defined by PJM due to default, bankruptcy, or Commission action, the customer shall receive HPS.

  (2) A customer eligible for HPS and affected by §B(1) of this regulation may elect at any time to switch to another competitive electricity supplier.

#### Regulation .05 Denial or Termination of SOS.

*COMAR 20.52.03.05*

A. A utility or other Commission-authorized entity providing SOS may terminate SOS only if the termination process complies with COMAR 20.31.

B. A utility or other Commission-authorized entity providing SOS may deny SOS only if the denial complies with COMAR 20.50.04.

### Chapter 04 — Electric Supply Service Procurement

**Authority:** Public Utilities Article, §§2-113, 2-121, 5-101, and 7-510, Annotated Code of Maryland

**Administrative History:** Effective date: June 7, 2004 (31:11 Md. R. 857)

#### Regulation .01 Procurement by Investor-Owned Utilities.

*COMAR 20.52.04.01*

A. Except for HPS or under Regulation .02D and E of this chapter, a utility shall procure the electricity needed to provide service under this subtitle during the service periods stated in COMAR 20.52.02 only through a competitive wholesale bidding process approved by the Commission.

B. Model Request for Proposals and Utility Bid Plan.

  (1) A utility shall base the competitive bidding process required by this regulation on the model request for proposals and a utility bid plan approved by the Commission.

  (2) The model request for proposals shall include a provision designed to eliminate a bid proposal for residential standard offer service that contains a price anomaly.

  (3) The model request for proposals may be altered by a utility bid plan only if it is necessary to conform to utility specific conditions.

  (4) Utility Bid Plan.

    (a) A utility bid plan shall include:

      (i) A bidding schedule;

      (ii) A description of the power supply blocks on which potential suppliers shall bid;

      (iii) Bid price formats;

      (iv) The time period during which the power will need to be supplied for each power supply block;

      (v) Bid submission instructions and format; and

      (vi) Bid evaluation criteria.

    (b) A utility may include in its bid plan reasonable credit requirements, cash collateral, or other assurance of the bidder's ability to perform, as approved by the Commission.

#### Regulation .02 Evaluation and Selection of Qualified Bids.

*COMAR 20.52.04.02*

A. A utility shall evaluate a qualified bid in a nondiscriminatory manner based on:

  (1) The contents of the bid submissions as specified in the model request for proposal; and

  (2) The utility bid plan.

B. A utility shall select qualified bidders based on the criteria established in the model request for proposals and the utility bid plan.

C. Commission Review.

  (1) As provided by Commission order, the Commission shall review all utility-selected bid proposals as a condition of any final contract.

  (2) If the Commission uses a consultant for this purpose, the consultant is subject to strict confidentiality requirements established by the Commission in consultation with the utility.

D. If a utility's competitive bid process under this regulation does not provide sufficient electric supply to meet the utility's full load requirements, the Commission by order may provide a process to ensure that a utility obtains all the electricity supply needed to serve the unmet electric load requirements.

E. The processes established under §D of this regulation may include:

  (1) A requirement that the utility file with the Commission a proposed alternate means of supplying the otherwise unserved load within 20 days of the utility determining that the load is unserved; or

  (2) A requirement that the utility purchase the necessary electricity and other required services through the PJM market until the Commission approves another means for procuring supply to serve all of its electric load requirements.

F. The result of the competitive bidding process under this regulation is confidential and subject to the confidentiality requirement established by the Commission in consultation with the utility.

#### Regulation .03 Electric Supply Contract.

*COMAR 20.52.04.03*

A. The utility and selected bidders shall enter into a full requirements service contract for each power supply block contained in the utility bid plan.

B. The Commission shall approve the terms and conditions of the full service contract required under §A of this regulation.

### Chapter 05 — Price

**Authority:** Public Utilities Article, §§2-113, 2-121, 5-101, and 7-510, Annotated Code of Maryland

**Administrative History:** Effective date: June 7, 2004 (31:11 Md. R. 857)

#### Regulation .01 Public Notice of Price.

*COMAR 20.52.05.01*

Upon completion of the electric supply procurement process under COMAR 20.52.04, a utility shall:

A. Explain the methodology used to calculate the price for electric service under this subtitle;

B. Calculate the price for each type of electric service offered to a customer under this subtitle;

C. File tariffs with the Commission containing the methods of calculating the price for each service authorized by this subtitle at least 30 days, and if possible 2 months, before the effective date of the tariffs;

D. Provide affected customers at least 30 days notice, and if possible 2 months notice, of new prices for electric service under this subtitle; and

E. Post on the utility's internet website, the actual price payable each month for each service offered under this subtitle.

#### Regulation .02 Calculation of Prices.

*COMAR 20.52.05.02*

A. For service periods stated in COMAR 20.52.02, retail prices for each service other than HPS under this subtitle shall consist of the sum of the following components:

  (1) The seasonally differentiated and, if applicable, the time-of-use differentiated load weighted average of all awarded electric supply prices for specific services in each year;

  (2) Retail charges designed to recover, on an aggregate basis, FERC-approved transmission charges and any other PJM charges and costs incurred by the utility;

  (3) An administrative charge, including other costs and return or profit; and

  (4) Applicable taxes.

B. The Commission may approve adjustments or reconciliation of a price component under §A of this regulation.