The Public Service Commission of Maryland convened an administrative meeting on December 11, 2024, to address critical issues surrounding renewable energy credits (RECs) and the upcoming changes in green power product offerings. The meeting focused on the implications of new pricing structures for suppliers and the urgency of establishing clear guidelines as the January 1 deadline approaches.

The discussion began with concerns regarding the current market prices for RECs, which have risen significantly compared to historical rates. Participants noted that the prices for Tier 2 RECs are now in the $14 to $15 range, prompting questions about how suppliers can effectively participate in the market if the expected pricing is set at 150% above the standard offer service (SOS) rates. The commission acknowledged the need for a definitive pricing structure but struggled to agree on a specific number, with suggestions ranging from 125% to 150% of the current SOS prices.

WGL Energy representatives provided insights from their market analysis, suggesting a price point of approximately 125% based on the trailing 12-month SOS. They emphasized the importance of having accessible data on current Tier 2 prices to facilitate accurate calculations and adjustments. The discussion highlighted the challenges suppliers face in finding reliable market data, particularly for Tier 2 RECs, which are less transparent than other REC categories.

As the meeting progressed, the urgency of the situation became apparent. With the transition to new regulations set for January 1, suppliers expressed concerns about their ability to renew existing green power contracts and market new products without clarity on pricing and regulatory approval. The commission staff acknowledged the complexity of the ongoing rule-making process and the need for timely decisions to support suppliers in preparing their offerings.

The meeting concluded with a call for further analysis and collaboration among stakeholders to finalize the pricing structure and clarify what qualifies as green power under the new regulations. The commission recognized that without prompt action, many contracts could be at risk of lapsing, potentially disrupting the market for renewable energy in Maryland. The urgency of these discussions underscores the critical role of regulatory clarity in fostering a stable and competitive renewable energy market.