Fix the Retail Energy “Green Power” Hoodwink

SB1 / HB 267 addresses the regulatory gaps in MD’s “green offers”

1. It’s RECs, not turbines: Suppliers buy add’l voluntary renewable energy certificates (RECs) above the state RPS limits paired with PJM electricity; the same energy as your neighbors who are not on retail supply. SB1 / HB 267 requires:

   • Better quality and more local RECs

   • New reporting: what REC types (hydro, trash, solar, wind) and from where.

   • Requires marketing disclosure to make transparent - this is REC-based product, it’s not clean energy.

2. HUGE rate premiums, for what? Suppliers disguise “free market” price gouging behind clean energy claims. See the rates charged, on average $725 more per account in 2022. SB1 / HB 267 requires rate guardrails tied to regulated rates. And, not many know that Inspire Energy is owned by Shell Oil, ironic.

   • For the math wonky types-On average, suppliers bought 7 RECs on behalf of each “green offer” account to green-up about 7,000 kwh electricity. So, CleanChoice charged customers $140 more per REC, NRG’s Green Mountain $110 more per REC. These are cheap, voluntary market RECs, run about $5 max per REC. If you want to dive deep into voluntary RECs, read this report.