WGL Energy raised significant concerns during the Maryland Public Service Commission's Administrative Meeting on December 11, 2024, regarding the proposed use of outdated pricing for renewable energy credits (RECs) in the state's annual Renewable Portfolio Standard (RPS) report. Janique Williams, representing WGL, argued that the staff's recommendation to use the Tier 2 price does not accurately reflect current market conditions, highlighting discrepancies between historical and present-day REC prices.

Williams pointed out that compliance RECs can be vintage, meaning they may not represent the current market value, as they can last up to three years. She emphasized that using 2022 RECs would result in lower costs compared to the current market, which is around 15 cents per REC, significantly higher than the 10 cents proposed by staff. This discrepancy could disadvantage suppliers like WGL, which focuses on procuring green energy certified wind, as they would be forced to compete with cheaper, potentially less sustainable options.

The discussion also touched on the implications of Senate Bill 1 (SB 1), which sets a 51% requirement for local green power sources, with the remaining 49% potentially sourced nationally. Williams expressed concerns about inconsistencies in the bill regarding the retirement of RECs and their generation location, suggesting that clarity is needed to ensure compliance with Maryland's standards.

Energy Advocates Coalition's Laurel Peltier echoed the importance of setting appropriate pricing structures, referencing New York's market revisions that led to a surge in green power suppliers but also high prices. Peltier urged the commission to support the staff's recommendations for the first year, emphasizing the need for transparency in the types of RECs being purchased.

Eric Wallace from the Supplier Coalition highlighted the necessity of establishing a pricing structure that reflects prospective market data rather than historical averages. He warned that if the commission continues to rely on outdated pricing, it could stifle competition and limit the availability of green power products for Maryland consumers.

The meeting underscored the critical need for the commission to navigate the complexities of REC pricing and sourcing to foster a competitive and sustainable energy market in Maryland. As discussions continue, stakeholders are keenly awaiting the commission's decisions, which will shape the future of renewable energy offerings in the state.