May 21, Administrative Docket Rulemaking No. 17 Compliance Plan of Baltimore Gas and Electric Company (BGE) Supplement 441 to P.S.C. Md.

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1 L. Wayne Harbaugh Vice President Pricing and Regulatory Services P.O. Box 1475 Baltimore, Maryland Fax Via Electronic Filing May 21, 2009 Terry J. Romine Executive Secretary Public Service Commission of Maryland William Donald Schaefer Tower 6 St. Paul Street, 16 th Floor Baltimore, Maryland Re: Administrative Docket Rulemaking No. 17 Compliance Plan of Baltimore Gas and Electric Company (BGE) Supplement 441 to P.S.C. Md. E-6 Dear Ms. Romine: Baltimore Gas and Electric Company hereby files Supplement No. 441 to P.S.C. Md. E-6 presenting its Compliance Plan and proposing modifications to the Electric Supplier Coordination Tariff and the Retail Electric Service Tariff in compliance with revisions to the Code of Maryland Regulations (COMAR) published on March 27, 2009 in the Maryland Register. These published revisions relate to Competitive Electric Supply for which the Commission established Rulemaking No. 17 (RM-17). Specifically, this Compliance Plan incorporates the requirements regarding consumer protection as it relates to bankruptcy law, suppliers electronic access to customer billing and payment data, utility responsibilities in the event of a supplier default, and the purchase of supplier receivables. The Compliance Plan further details the method of recovering costs resulting from the implementation of these rules. BGE seeks cost recovery through a new Electric Rider, Rider 29 - Electric Choice Charge (ECC) that will be reconciled annually. Cost Recovery BGE will file the initial ECC calculation in December 2009, to become effective with February 2010 billings, consistent with the timing of the next Gas Choice and Reliability Charges (GCRC) filing. The ECC will be a single charge that will encompass three components. The first component, the Electric Choice Program Cost Component, is intended to recover all prudently incurred costs related to BGE s Electric Choice Programs, including the costs associated with programming and implementing these rules. The second

2 Terry J. Romine, Executive Secretary May 21, 2009 Page 2 component, the Uncollectible Expense Component, will recover the uncollectible expenses associated with purchasing supplier receivables. The third component is the Return Component. Because the purchasing of receivables will obligate BGE to act outside of its core business responsibilities and in the capacity of a financial institution taking on additional financial cash flow obligations and moving hundreds of millions of dollars per year between various parties, the utility should be appropriately compensated. There are several reasons why the Commission should approve cost recovery through the proposed ECC. Using this approach benefits the competitive market since Electricity Suppliers can establish their rates without concern about a current or future discount rate; it simplifies cost recovery by using one mechanism to recover choice related costs and it fairly compensates BGE for all costs associated with RM-17. Timing for Implementation BGE proposes to implement this Compliance Plan in phases, the majority to become effective on June 17, The Company will provide Electricity Suppliers using BGE s consolidated bill the same electronic access to customer bill information that it provides the customer (Bill View Access) on August 1, 2009, and will Purchase Electricity Supplier Receivables effective with April 2010 billings. Designing, programming and testing system changes associated with RM-17 is a time-consuming process and is estimated to take approximately 11,000 hours, which is equivalent to 5.5 individuals working exclusively on RM-17 requirements full time for a full year. As proposed, the time required to program the purchase of receivables alone is estimated at almost 6,200 hours. Implementing RM-17 will affect 89 modules in BGE s computer systems. Attachment 1 to the Compliance Plan describes the technical requirements necessary to implement RM-17 and provides a summary of the affected modules, hours to implement and the requirements associated with each task. BGE must test each module and its interaction with any and all systems that they interact with to ensure complete and accurate functionality. The Commission should also be aware that programming does not occur in a vacuum. BGE must still operate its day-to-day businesses, while programming for RM-17, and therefore cannot afford to suspend IT operations while work is conducted to accomplish the requirements of this rule. In addition, BGE is currently on implementing the requirements of Case No as it relates to alternate payment plans, as well as PeakRewards SM, Smart Energy Pricing Pilot, EmPOWER Maryland and during the same time period, BGE anticipates being required to implement RM-35 regulations relating to a uniform Statewide gas electronic transaction process. Also, because the Sarbanes Oxley Act requires us to provide assurance that internal controls are properly designed, in place and operating effectively prior to the end of the year, BGE s policies generally preclude implementing significant system changes, such as those described herein, during the fourth quarter of the year. Implementation of significant system changes that impact our financial reporting controls during the fourth quarter limits our ability to test the required Sarbanes Oxley controls related to those changes before year-end.

3 Terry J. Romine, Executive Secretary May 21, 2009 Page 3 The Commission should not perceive this timeframe as hindering or delaying implementation in any way. Indeed, BGE s stance regarding the furtherance of choice is just the opposite: BGE has long been a supporter of the competitive markets. In fact, BGE recently filed a request to share customer lists with suppliers for the sole purpose of facilitating choice. Conclusion BGE respectfully requests that the Commission approve the amendments to the Supplier Coordination Tariff (Attachment 2) and the Retail Electric Service Tariff associated with the new Rider 29 Electric Choice Charge (Attachment 3), proposed herein, and requests that this matter be considered at the Commission's June 17, 2009 administrative meeting. Sincerely, L. Wayne Harbaugh

4 Rulemaking No. 17 Compliance Plan of Baltimore Gas and Electric Company Associated with the Regulations Published in the Maryland Register on March 27, 2009 Utility Consolidated Billing ( ) BGE currently allows an Electricity Supplier to include their charges on BGE s consolidated bill. BGE currently transmits consumption, billing, and related data using electronic transactions; remits supplier revenues and billing data using electronic transactions; and provides suppliers access to billing and payment information for the suppliers presently enrolled customers at the current Tariff rates. There will be some minor system modifications necessary to allow BGE to transmit billing and payment data for nonresidential customers. BGE provides most customers electronic access to their most recent twelve (12) bills via BGE.com. RM-17 regulations require BGE to provide Electricity Suppliers using BGE s consolidated bill Bill View Access. Accordingly, BGE will modify its Customer Consumption Data website (CDWeb), to provide Electricity Suppliers with the ability to electronically access the same twelve bills that their customers have electronic access to. BGE created Section Billing and Payment Data Access to detail the requirements described above. To allow time for BGE to program Bill View Access, BGE proposes to make those Tariff provisions effective on August 1, 2009, and the remaining provisions of Section to become effective upon Commission approval. BGE will concurrently be making modifications to allow Gas Suppliers using BGE s consolidated bill the same electronic access to customer bill information provided the customer via the CDWeb. Utility Responsibilities in the Event of Supplier Default ( ) RM-17 defines a defaulted supplier and details the Company s billing obligation in the event of an Electricity Supplier Default. To specify the requirements of RM-17, BGE added a new section 6.3 Supplier Default- to define when an Electricity Supplier is in default and modified Section 6.2 Events of Noncompliance - to remove the two conditions of default that are detailed in the regulations and now separately defined in Section 6.3. In addition, BGE renumbered 6.3 Cure and Default - to Section 6.4. BGE currently has the ability to bill for an Electricity Supplier in Default, using a laborious workaround procedure. The procedure requires manual intervention and results in delayed billing for the majority of impacted Customers. BGE will modify its billing processes and systems to allow BGE to seamlessly continue billing for an Electricity Supplier in Default through the conclusion of the billing cycle in which the default occurred. To reflect the obligation described above, BGE proposes to add a new section to the Supplier Tariff, Section Utility Responsibilities in the Event of Electricity Supplier Default 1

5 to specify that a defaulted supplier using the Company Consolidated Billing option remains obligated to provide the Company with information necessary to allow the continuation of consolidated billing through the conclusion of the billing cycle in which the default occurred. The defaulted supplier using utility consolidated billing services is prohibited from issuing bills to persons who were customers at the time of the default unless specifically authorized by the Commission. BGE proposes to make these Tariff provisions effective upon approval. BGE will concurrently be modifying its billing processes and systems to allow BGE to seamlessly continue billing for a gas supplier in the event of default through the conclusion of the billing cycle in which the default occurred. Utility Purchased Receivables or Prorated Payments ( ) RM-17 requires a utility providing utility consolidated billing to either purchase the receivables of a supplier or to prorate customer payments between the utility and the supplier. BGE evaluated the two options provided for in RM-17 and will purchase the competitive power supply receivables of a supplier. BGE will not purchase the receivables for charges other than electric supply (i.e: energy audits, sale of energy efficient appliances, appliance repair, etc.). BGE will purchase the receivables effective with April 2010 billings. BGE will not purchase any supplier receivables that were incurred prior to that date. The current payment posting process will remain in effect until BGE purchases supplier receivables. BGE will purchase the receivables for all Electricity Suppliers electing to use the Company Consolidated Billing option on the day the bill is rendered. The charges purchased by BGE will be treated as all other utility charges pursuant to all applicable Tariffs. The Company will pay all undisputed charges by the 5 th day from the due date noted on the bill. The Electricity Supplier s receivables will be purchased on a non-recourse basis and the Company will not return the Customer to Standard Offer Service or require an Electricity Supplier to switch the Customer to the Dual Billing option if a Customer fails to pay the Electricity Supplier s charges. However, in the event a Customer disputes an Electricity Supplier s charges and notifies the Company, BGE can reverse the disputed amount if paid to the Supplier and stop payment to that Electricity Supplier for that individual account until such time that the Company is notified that the dispute has been resolved. Once resolved, BGE will remit the payments withheld from the supplier during the dispute period. If BGE remitted more funds to the suppler than due, BGE will net that amount against total funds being remitted to the supplier. To detail the changes required for BGE to purchase the receivables for Electricity Suppliers electing the Company Consolidated Billing option, BGE proposes to create Section Purchase of Electricity Supplier Receivables. As described below, BGE will require adequate time to design, program and test all programs impacted by the change to Purchase of Receivables. Therefore, BGE is proposing to make this Tariff provision effective with April 2010 billings. To describe how BGE will apply partial payment of a bill by a customer through March 2010 billings BGE included Section Payment Posting to remain effective until the Company purchases Electricity Supplier receivables. 2

6 BGE will concurrently be modifying its billing processes and systems to allow BGE to purchase the receivables associated with gas supply for Gas Suppliers electing the Company Consolidated Billing option. Cancellation of Supply Service ( ) and Notice of Contract Expiration or Cancellation ( ) BGE modified Section 7.7 Customer Designation to Control - to specify the RM-17 regulations that BGE will process drop transitions subject to applicable bankruptcy law. BGE proposes to make these Tariff provisions effective upon approval. Implementation Schedule BGE has requested that this matter be considered at the Commission s June 17, 2009 administrative meeting. To allow adequate time to implement the more complex components of this regulation, while providing Electricity Suppliers and Customers with the benefits of these regulations as soon as possible, BGE proposes to implement them in separate installments. As a combined gas and electric utility, where similar regulations exist as part of RM-35, BGE will concurrently be modifying its processes and systems. As proposed, implementing these requirements will take approximately 11,000 hours, which is equivalent to 5.5 individuals working on these requirements exclusively for one full year. Please refer to Attachment I, which describes the various modules that need to be addressed and the system modifications necessary to accurately implement all aspects of the purchase of receivables. To implement all of the RM-17 regulations published on March 27, 2009, BGE proposes to modify Sections Events of Noncompliance; Supplier Default; and Customer Designation to Control to become effective on June 17, 2009 In addition BGE proposes modifying Section 12.0 Retail Consumer Billing and Payment Collection also to become effective on June 17, These provisions will specify that effective August 1, 2009, the Company will begin providing Suppliers with the same electronic access to customer bill information that it provides the customer. They will also state that the current Payment Posting will remain in effect through March 2010 billings at which time the Company will begin purchasing the Electricity Suppliers receivables. Billing and Payment Data Access: The Company proposes to implement this portion of RM-17 in two phases. BGE will have to make some minor system changes to provide customer billing and payment information data to suppliers for commercial customers. Due to the limited scope of this requirement, BGE recommends that this portion of RM-17 be effective immediately. Currently, Electricity Suppliers do not have Bill View Access. Therefore, by August 1, 2009, BGE will modify the CDWeb, to provide Electricity Suppliers the ability to electronically access the same twelve (12) bills that their customers have electronic access to. Utility Responsibilities in the Event of Supplier Default: BGE currently has the ability and the responsibility to bill for an Electricity Supplier in default. Therefore, BGE recommends that this portion of RM-17 be effective immediately. However, the current 3

7 process uses a laborious workaround procedure that requires manual intervention and results in delayed bills to impacted customers. Therefore, BGE intends to modify its billing systems in early 2010 to allow BGE to seamlessly continue billing for an Electricity Supplier in Default through the conclusion of the billing cycle in which the default occurred. Purchase of Electricity Supplier Receivables: BGE will purchase the competitive power supply receivables for Electricity Suppliers electing the Company Consolidated Billing option. BGE respectfully requests that the Commission allow BGE to implement the purchase of receivables effective with April 2010 billings. This will provide the Company adequate time to design, program and test all of the modules in BGE s Customer Information System, the Guidance system used by our customer service personnel, the Accounts Payable system and any other related systems. BGE also needs this time to be sure that all modules that are impacted by the current payment posting process have that process removed and that all impacted modules properly reflect the purchase of receivables. Proper designing, programming and testing are necessary to assure that all of our customers are billed properly, especially as it relates to supplier charges, and that suppliers are paid accurately and on time, whether or not BGE receives payment from the customer. Implementation Costs & Cost Recovery To facilitate recovery for costs related to the Electric Choice Programs, BGE proposes creating a new Electric Rider 29 - Electric Choice Charge. One component of the proposed ECC, the Electric Choice Program Cost Component, is consistent with the Gas Choice Program Cost Component of the GCRC, which was approved in Case No Phase II. In December 2008, the Commission authorized BGE to recover estimated RM-35 implementation costs through the GCRC. In this component, BGE is simply seeking the exact same recovery for electric choice related expenditures, including the programming and implementation costs related to RM-17, that it currently receives for gas choice related costs, which include RM-35 costs. Therefore, BGE proposes recovering the estimated costs associated with programming and implementing RM-17 costs through the ECC, amortizing those costs over two years. BGE proposes recovering supplier uncollectible costs using the Uncollectible Expense Component of ECC. This uncollectible expense is created by the customer and accordingly the associated costs should be recovered from customers. In addition, recovering the uncollectible expenses associated with BGE s obligation to purchase supplier receivables through the Uncollectible Expense Component will eliminate the need to purchase receivables at a discount. This approach benefits the competitive market because suppliers can establish their prices without incorporating the known discount plus a risk associated with future discount rates required for longer term contracts. BGE anticipates that suppliers would in turn pass this benefit onto its customers, allowing the supplier to offer competitive rates. If the Commission does not approve this ECC, BGE alternatively will offer a cost recovery mechanism that involves a discount to be compensated for all of the uncollectible costs and risks associated with these accounts. Therefore, approval of the ECC as proposed will enable BGE to purchase receivables at 100%, making the Maryland market more attractive to suppliers. 4

8 For the initial ECC calculation, the Uncollectible Expense Component will be estimated by assuming that the uncollectible expenses associated with the Electricity Supplier receivables will be equal to the amount approved on a per kwh basis in the POLR Settlement Agreements. Any difference between the amount collected and the actual uncollectible experience will be included in the annual true-up as described in the proposed Rider 29. For the initial ECC filing, the Uncollectible Expense Component will include estimated costs beginning in April 2010, which is when BGE will commence purchasing supplier receivables. Lastly, BGE proposes incorporating a Return Component to the ECC to compensate BGE for offering a purchase of receivable service. BGE will experience a business risk in that the Company s core business is that of a gas and electric utility, and not a financial institution. Because BGE is compelled to operate outside of its core business it should be compensated for the risk associated with this function. In addition, BGE is taking on new financial risk associated with the additional cash flow obligations associated with taking on a third party s financial obligations. BGE is proposing to remit payment for purchased electric supply receivables on a daily basis on the 5th business day following the Customer s original bill due date. This is consistent with the approach taken by the other electric utilities participating in this proceeding and helps to mitigate the cash working capital requirements associated with purchase of receivables. However, as noted in the Company s November 25, 2008 Semi-Annual QRS Charge True-up filing, the Company only collects 74.7% of its residential electric customer billings in the first 30 days after billing, implying that the proposed approach will not fully mitigate cash working capital needs. The Return Component in the proposed Rider 29 will also help to cover these cash working capital needs. Standard utility ratemaking provides that utilities recover their costs plus earn a reasonable return. Although providing a purchase of receivables service is not capital intensive, it is still appropriate to earn a return because the Company is providing a service that includes an inherent risk, for which it deserves the opportunity to earn a fair return for its shareholders. This approach is identical to the approach taken under the POLR Settlement Agreement in Case No and supported by Commission Staff. 1 BGE recommends using a return component of.15 cents/kwh for purchased residential receivables and.20 cents/kwh for purchased non-residential receivables consistent with POLR Settlement Agreements approved in Case No Should the Commission reject the return component of the ECC or require BGE to make payments at an earlier date, BGE will reserve the right to file an alternate cost recovery approach. The ECC will include an annual true-up mechanism. The proposed true-up is symmetrical, it will increase when costs go up and decrease when costs go down. This benefits customers whether expenses are increasing or decreasing. When electric choice costs increase, this mechanism limits the customers associated carrying costs that will result. On the other hand, should costs, including uncollectible costs decrease, the customer will receive the benefit from the reduction in these expenses when the true-up is performed. 1 See Testimony in Support of Settlement Agreement of Calvin L. Timmerman on behalf of the Staff of the Public Service Commission of Maryland at 20-21, Case No (November 22, 2002) 5

9 Rulemaking 17 - Description of IT Requirements Attachment I Functional Area Hours Modules High Level Requirement Description Purchase of Receivable Requirements Assistance Programs All bill assistance grant funds must be accurately applied to current billed charges, including the amounts purchased by BGE from the Electricity Suppliers. The purchased receivables must be included in arrearages eligible for bill assistance to prevent them from being understated. Collections Purchased supplier charges must be included in BGE's Active Collections System and be included in calculations for collection activity, customer deposits, write-off calculations, field collection eligible, service arrearages, special payment agreements, etc. Late Payment Charges Late Payment Charges must be assessed on purchased supplier charges Payment The current Payment Posting Priority must remain in effect For amount billed prior to the transition to Purchase of Receivables. These amounts must also be segregated for proper treatment of returned items and reapplied credits. POR Tracking The system must be able to identify purchased and nonpurchased supplier receivables and recognize that all supplier charges are purchased effective with the transition date. Purchased supplier receivables will be included in the Aged Accounts Receivable Report. The system must include past due purchased supplier receivables on the bill presentation under 'BGE Balance Due'. Supplier Disputes The system must be able to indicate a supplier change in dispute of an account, have the ability to stop collection activity on that account, provide the ability to stop making payments to that supplier for that account. The system must be able to indicate when the dispute began, when it ended and correctly pay the supplier for any amounts temporarily withheld.

10 Rulemaking 17 - Description of IT Requirements Functional Area Hours Modules High Level Requirement Description Other RM-17 Requirements Bill View 932 CD-Web must provide the ability to provide both gas and electric suppliers with customer bill view access Billing and Payment Data 28 The system must provide the ability to provide billing and payment data to suppliers for both gas and electric commercial customers Supplier Default 850 The system must provide the ability to automate billing and essential customer communication when a supplier defaults. JAD Sessions & Requirements Development 850 Planning and Developing Workshops where knowledge workers and IT specialists meet to define and review the business requirements for the system. Project Management TOTAL RM-17 - Excluding Discount , Planning, organizing and managing resources to bring about the successful completion of specific project goals and objectives Calculate Discount TOTAL RM-17 Including Discount , Should BGE be required to utilize a discount rate, the system must be able to apply different discount rates for different customer classes, must be able to properly segregate and identify the discounted revenues, must be able to remit payment to the supplier at the correct discounted amount Note: The time to modify any given module will depend on the underlying complexity of the module and the specific programming requirements. Therefore, there is not a consistent ratio between hours worked and modules modified.

11 Attachment 2

12 10 Electric Supplier Baltimore Gas and Electric Company 6.2 Events of Noncompliance. Noncompliance of this Tariff shall include, but is not limited to, the following. a) Electricity Supplier s failure to maintain a valid license from the Commission as an Electricity Supplier; b) Electricity Supplier s failure to maintain its PJM membership as a Load Serving Entity in good standing, and/or to meet its PJM requirements directly or through a Scheduling Coordinator; a) c) Failure of Electricity Supplier to maintain credit standards noted in the Creditworthiness Section of this Tariff; b) d) Electricity Supplier s failure to make payment of any Undisputed Charges for Electricity Supplier services in the time prescribed; c) e) Electricity Supplier Bankruptcy; e)d) A written admission by the Electricity Supplier of its inability to pay its debts generally as they become due or the Electricity Supplier s consent to the appointment of a receiver, trustee, or liquidator of it, or of all or any part of its property; or e) Breach of the Supplier Coordination Agreement. 6.3 Supplier Default. An Electricity Supplier is considered a defaulted supplier if it is unable to deliver electricity because: a) The Commission revokes or suspends the Electricity Supplier's retail electricity license; or b) The Electricity Supplier is unable to transact sales through the regional transmission organization designated for Maryland by the Federal Energy Regulatory Commission Cure and Default. If either the Company or the Electricity Supplier fails to comply with its obligations under the Tariff (hereinafter the "Noncompliant Party"), the other party shall provide written notice to the Noncompliant Party describing such noncompliance in reasonable detail and demanding its cure. The Noncompliant Party shall be deemed to be in default ("Default") of its obligations under this Tariff if: (i) it fails to cure its noncompliance within 10 Business Days after its receipt of such notice; or (ii) the noncompliance cannot be cured within such period and the Noncompliant Party does not commence action to cure the noncompliance within such period and, thereafter, diligently pursue such action to completion. In the case of the Electricity Supplier s failure to maintain its status as a Commission-licensed Electricity Supplier or the Electricity Supplier s failure to meet its PJM obligations either directly or through a Scheduling Coordinator, or Electricity Supplier s Bankruptcy, no notice shall be required or opportunity to cure permitted. P. S. C. Md. E-6 (Suppl ) Filed 05/24/0021/09 Effective 06/01/0017/09

13 Baltimore Gas and Electric Company Electric Supplier Incumbent Supplier-Identified Erroneous Transactions. If an erroneous transaction is identified by the incumbent Supplier, the incumbent Supplier shall, upon verifiable consent of the Customer, cancel the pending Enrollment by notifying the Company by an EDI Cancel Transaction within 24 hours of the Customer's Consent and not later than five days after the erroneous Enrollment or Drop Transaction is received by the Company. Initiation of the EDI Cancel Transaction by the incumbent Electricity Supplier without the verifiable Customer Consent is considered an unauthorized Enrollment of the Customer with the incumbent Supplier Electronic Cancel Transactions Received Later Than Five Days. Electronic Cancel Transactions received from the incumbent Supplier later than five days after the erroneous Enrollment or Drop Transaction is received by the Company will be rejected. 7.7 Customer Designation to Control. The Electricity Supplier acknowledges and agrees that the Company will give effect to all Customer requests to change to a new Electricity Supplier, or return to the Company s Standard Offer Service, and consequently the most recent Customer designation of an Electricity Supplier, for which the procedures under Section 7.3 have been completed, will be given effect by the Company. Except as otherwise provided in this Tariff, the Company shall remove a Customer from supplier services only if directed by the Supplier, subject to applicable bankruptcy law. 7.8 Customer Termination of Service at Existing Account. If a Customer contacts the Company to discontinue electric service, the Company will notify the current Electricity Supplier of the Customer's discontinuance of service for the account at the Customer's location. If available at that time, the Company will provide the Electricity Supplier that served the Customer at the old location with the Customer's new mailing address or forwarding address Supplier Discontinuance of Service. When initiating the discontinuance of service to Customers, the Electricity Supplier must comply with the notification requirement of the Maryland Public Service Commission and submit a valid drop transaction to the Company before the date service is to be discontinued Effective Date of Discontinuance. Any discontinuance, except those under Section 7.8 will take effect on a Meter Read Date and in accordance with the provisions of this Tariff Account Number Change. If the Company elects for valid business purposes only to change the account number for a Customer receiving Competitive Power Supply from the Electricity Supplier, the Company will notify the Electricity Supplier of the change in account number at the same Customer location, via electronic file Full Requirements Service Provision. The Electricity Supplier shall agree to supply Full Requirements Service for each of its Customers at each Customer account enrolled. Partial requirements or split load service will not be supported. P. S. C. Md. E-6 (Suppl ) Filed 08/04/0805/21/09 Effective 12/15/0806/17/09

14 20 Electric Supplier Baltimore Gas and Electric Company Company may, as part of the routine billing and payment process between the Company and Electricity Supplier, net or offset any and all amounts that may be due and owing by the Electricity Supplier to the Company against any and all amounts that may be due and owing by the Company to the Electricity Supplier, as a result of the Company s collection of the Electricity Supplier s portion of the Customer s payment pursuant to Section 11.2 hereof, prior to rendering payment or an invoice to the Electricity Supplier Billing Disputes. In the event the Electricity Supplier fails to make payment on or before the due date because of a billing dispute between the Company and the Electricity Supplier, the Company will continue to provide Coordination Services under this Tariff and the Supplier Coordination Agreement as long as the Electricity Supplier (1) continues to make all payments not in dispute, and (2) pays into an escrow account the portion of the invoice in dispute, pending resolution of the dispute. If the dispute cannot be resolved, the Company may, at its election, stop processing new Customer enrollments for the Electricity Supplier or terminate the Supplier Coordination Agreement and retain the amount in escrow (including interest). The Company shall notify the Electricity Supplier in writing of its intent to do so. The Electricity Supplier may, within 30 days, file a complaint with the Commission, in which case the Company will continue to provide all Coordination Services, including enrollment, and the Electricity Supplier will continue to make payments into the escrow account until final disposition of the complaint Billing for Electricity Supplier s Obligations to Other Parties. The Company will assume no responsibility for invoicing or billing of services between the Electricity Supplier and PJM, the Electricity Supplier and any energy source, or a Scheduling Coordinator and any Coordinated Electricity Suppliers. 12.0: RETAIL CUSTOMER BILLING AND PAYMENT COLLECTION 12.1 Billing Services Selection and Change: The Electricity Supplier may elect to use utility consolidated billing or to have the Customer receive separate (dual) bills from the Company and the Electricity Supplier. The Electricity Supplier shall notify the Company of its choice of billing service option when notifying the Company of the Customer s enrollment Billing Service Options. Electricity Suppliers will have the opportunity to choose from the following billing service options: a) Separate (Dual) Electric Company/Electricity Supplier Billing b) Electric Company Consolidated Billing - Bill Ready Option Notification of Billing Option Change. If the Electricity Supplier changes its billing option for a Customer after initial enrollment, the Electricity Supplier must notify the Company of the change at least 10 days prior to the Customer s scheduled Meter Read Date. If the Electricity Supplier fails to notify the Company 10 days prior to the scheduled Meter Read Date, the billing option change will take effect on the following scheduled Meter Read Date Change of Billing Options Offered. An Electricity Supplier who adds or deletes a billing option that it offered when Utility/Supplier Services are initiated pursuant to this Tariff shall provide 60 calendar-days notice prior to implementing the addition/deletion to its affected customers, the Company, the Maryland Public Service Commission Staff, the Office of People s Counsel Meter Reading Information. The Company will read the Customers meters in accordance with its customary practices Estimated Meter Read. In the event an actual meter reading cannot be obtained, the P. S. C. Md. E-6 (Suppl ) Filed 12/31/0805/21/09 Effective 02/18/0906/17/09

15 22 Electric Supplier Baltimore Gas and Electric Company Company shall estimate the Customer s consumption for billing purposes for the applicable period in accordance with Commission approved procedures Meter Read Data. The Company will normally provide the Electricity Supplier with actual or estimated meter read data within 3 days of the Meter Read Date Separate (Dual) Billing. If the Supplier chooses to use Dual Billing, the Company and the Electricity Supplier will separately send their bills directly to the Customer. The Company will render its bills consistent with its standard billing practices Customer Billing Complaints. The Company shall process all complaints and customer services regarding the bill rendered by the Company in accordance with applicable regulations and performance specifications. The Electricity Supplier shall process all complaints and customer services regarding the bill rendered by the Electricity Supplier in accordance with applicable regulations and performance specifications Company Consolidated Billing. The Company shall render a single consolidated bill with Customer charges for both the Company and the Electricity Supplier separately stated. A monthly billing charge will be applied to each Electricity Supplier for each month that the Company renders bills on a consolidated basis to Customers of that Electricity Supplier, as detailed in Schedule 1 of this Tariff Billing Format Bill Ready. If the Supplier chooses to have the Company render a consolidated bill, the Supplier must transmit its billing information to the Company in a bill ready format and in accordance with the billing practices and EDI standards accepted by the Commission. a) The Supplier must calculate and send its Customers charges to the Company within 3 Business Days of receipt of the meter read data. If the Electricity Supplier fails to transmit its Customers information to the Company in the required timeframe, the Company will not render a consolidated bill, for those charges. b) The Company will not be liable for the Electricity Supplier s charges or losses, damages or consequential damages associated with the Electricity Supplier s Customers not being billed for the Electricity Supplier s charges for that period. c) The Electricity Supplier is responsible for the bill content transmitted to the Company d) The Company will provide the Electricity Supplier up to four lines, each 80 characters in length, on its standard bill for messages directly related to the calculation or understanding of the Supplier s portion of the bill, Purchase of Electricity Supplier Receivables. Effective with April 2010 billings, when an Electricity Supplier elects to use Company Consolidated Billing, the Company will assume the Electricity Supplier s receivables pursuant to Commission rules and regulations and any other provisions of this Tariff. a) All electricity charges resulting from the Supplier provision of Competitive Power Supply for Customers billed using Company Consolidated Billing will be purchased, and will become the Company s charges on the day the bill is rendered. P. S. C. Md. E-6 (Suppl ) Filed 05/24/0005/21/09 Effective 06/01/0006/17/09

16 20 Electric Supplier Baltimore Gas and Electric Company b) In the event an Electricity Supplier converts a Customer from Electric Company Consolidated Billing to Separate Billing, Supplier and Company will each be responsible for its own receivables effective as of the start of Dual Billing. c) The Company will pay all undisputed charges to the Electricity Supplier by the 5th day from due date noted on the consolidated bill. d) The Company will make payments of funds payable to the Electronic Supplier via electronic payment with remittance advice to a bank designated by the Electricity Supplier. Wire transfer of funds will be made per relevant Commission orders unless other terms are mutually agreed upon. e) Purchased Electricity Supplier receivables will be treated the same manner as Company charges pursuant to applicable Tariffs. f) In the event a Customer disputes an Electricity Supplier s charges and notifies the Company, the Company can reverse the disputed amount if paid to the Supplier and stop payment to that Electricity Supplier for that individual account until such time that the Company is notified that the dispute has been resolved. Once resolved, BGE will remit the payments withheld from the supplier during the dispute period. If BGE remitted more funds to the suppler than due, BGE will net that amount against total funds being remitted to the supplier. g) If the Electricity Supplier s Customer is on Budget Billing, the Company shall only be obligated to purchase each month the amount of the monthly installment under the Budget Billing plan. h) The Company shall add to or deduct from any payments due to Electricity Suppliers amounts that may result from reconciliations, adjustments or recalculations of estimated readings, cancel and rebills or any applicable billing adjustment. i) The Company will not purchase accounts receivables incurred prior to the Suppliers election to use Company consolidated billing for that Customer Payment Posting. Effective through March 2010 billings, under the consolidated billing options, in the event of partial payment of a bill by a Customer, Customer remittance will be applied in accordance with Commission approved payment posting rules and regulations pertaining to payment posting for combination (gas and electric) bills. In the event that a bank returns any Customer check, such debits will be applied in inverse order to the order set forth above Billing and Payment Data Access. The Company and the Electricity Supplier shall transmit consumption, billing, and related data to each other using electronic transaction for the purpose of Company consolidated billing a) The Company shall remit supplier revenue and billing data to the supplier by electronic means. b) The Supplier shall have access to customer billing and payment information from the Company for the supplier s presently enrolled customers at no cost beyond the tariffed rate. c) Effective August 1, 2009 the Company shall provide the Supplier with the same electronic access to customer bill information that it provides to the customer. P. S. C. Md. E-6 (Suppl ) Filed 12/31/0805/21/09 Effective 02/18/0906/17/09

17 22 Electric Supplier Baltimore Gas and Electric Company Bill Due Date. For consolidated billing options, the Electricity Supplier must adopt the same bill due date as the Company. Most bill due dates will be in accordance with the Company s published bill schedule Utility Responsibilities in the Event of Supplier Default. A defaulted Electricity Supplier as defined in Section 6.3 using Electricity Company consolidated billing services remains obligated to provide the Electricity Company with information necessary to allow the Electricity Company to continue consolidated billing through the conclusion of the billing cycle in which the default occurred. The defaulted Electricity Supplier is prohibited from issuing bills to persons who were customers at the time of the default unless specifically authorized by the Commission. a) A request to authorize an Electricity Supplier to bill directly may be made to the Commission by the Company or the applicable Electricity Supplier. b) The defaulted Electricity Supplier and the Company shall continue to abide by the Supplier Coordination Agreement Billing and Payment Programs. The Company may continue to offer the following programs Budget Billing. The Company will continue to offer Budget Billing for its charges. Customers seeking to enroll in or terminate from Budget Billing must do so by contacting the Company. If a Customer is enrolled in the Company s budget billing program and switches to an Electricity Supplier, the Company will perform a final budget reconciliation to remove the commodity charges from the budget bill amount. The Company s portion of the budget bill amount will be based solely on its regulated charges and, at the Company s discretion, may include amounts required to true-up (or settle) any excessive accumulated deviation from the budget plan. Such true-up may occur immediately, over the remaining Budget Billing cycle, or during the Company s regular Budget Billing review periods, at the Company s discression. The Company will make budget billing available for Supplier charges. If the Supplier elects to include a budget amount on the Company s consolidated bill, the Supplier must provide budget billing information in a manner consistent with current regulations and EDI standards to be included on the consolidated bill BGEasy. The Company will continue to offer BGEasy for all charges billed on a Company rendered bill. Customers seeking to enroll in, or terminate from, BGEasy must do so by contacting the Company Taxes. In accordance with Commission procedures, the entity that originates the charge is responsible for, and shall remit and file taxes applicable to its charges Company Tax Responsibilities. The Company is responsible for calculation, collection and remittance of gross receipts taxes, franchise tax on delivery service, and State and local energy taxes assessed on delivery service or other products and services provided by the Company Supplier Tax Responsibilities. The Electricity Supplier is responsible for calculation, collection and remittance of State and local energy taxes assessed on all products and services provided by the Electricity Supplier Tax Exemptions. Where Customers are exempt from taxes, it is the responsibility of both the Company and the Electricity Supplier to separately procure any required tax exemption P. S. C. Md. E-6 (Suppl ) Filed 05/24/0005/21/09 Effective 06/01/0006/17/09

18 20 Electric Supplier Baltimore Gas and Electric Company certificates from the Customer Billing Service Options. Upon enrollment with an Electricity Supplier, Customers have the option of electing one of up to three billing options as follows. Customers elected billing option will be confirmed on the enrollment confirmation letter referenced in Section 7.4. Electricity Suppliers will be subject to the applicable billing fees as outlined in Schedule 1 of this Tariff and must successfully complete all relevant Commission approved billing testing prior to offering such billing options to Customers Company Consolidated Billing. The Company will render the bill with its charges and the Electricity Supplier s charges shown separately on the bill Electricity Supplier Consolidated Billing. The Electricity Supplier will render the bill with its charges and the Company s charges shown separately on the bill. Electricity Suppliers can elect not to offer this option Dual Billing. Both the Company and the Electricity Supplier will bill the end-use Customers individually for their respective charges Provision of Billing Data. BGE will provide the Electricity Supplier customer usage data that will allow the Supplier to bill customers for capacity and energy that is consistent with the load obligation assigned to the Supplier by the utility Billing and Payment Programs. The following programs may continue to be offered by the Company Budget Billing. When a Customer enrolled in Budget Billing switches from BGE s SOS P. S. C. Md. E-6 (Suppl ) Filed 12/31/0805/21/09 Effective 02/18/0906/17/09

19 Baltimore Gas and Electric Company Electric Supplier 21 service to an Electricity Supplier, the Customer will remain on Budget Billing for BGE s charges, and the Customer s Budget Bill will be adjusted to reflect BGE s regulated distribution charges only. For Customers who elect Budget Billing for their supplier charges, the Electricity Supplier shall provide the Company with budget billing information, to be included on their Customer s bill BGEasy. The Company will continue to offer BGEasy for all charges billed on a Company rendered bill. Customers enrolled in BGEasy will remain on BGEasy unless they elect Electricity Supplier Consolidated Billing. Customers seeking to enroll in, or terminate from, BGEasy must do so by contacting the Company Availability of Competitive Billing Services. A licensed Electricity Supplier must provide at least 60 days advanced notice of the billing options it intends to offer or any changes to its existing billing options, and must complete all applicable Commission approved testing Mandated Bill Components. The non-billing entity must provide the billing entity with all billing components as mandated by Commission approved standards. The billing entity must provide space on the bill for all non-billing entity mandated billing component line items Bill Communications. The billing entity will provide the non-billing entity up to four lines, each 80 characters in length, on its standard bill for messages directly related to mandated Commission messages, the calculation or understanding of the non-billing entity s portion of the bill, and/or Company customer collections. Mandated notices that cannot be accommodated due to space limitations on the bill will require a separate insert (e.g., the Customers' Rights Pamphlet). Electricity Suppliers bill communications are subject to the same restrictions with regard to the Suppliers affiliates as the Company is under Rules for BGE and its affiliates as contained in Commission Case No. 8747, Order No Non-mandated Billing Components and Messages Unrelated to the Understanding of the Bill. The billing entity and non-billing entity may develop individual agreements to enable the billing entity to include non-mandated components, messages or communications on the consolidated bill Meter Reading. The Company is responsible for reading the Customer s meter. In the event an actual meter reading cannot be obtained, the Company shall estimate the Customer s consumption for billing purposes for the applicable period in accordance with its Retail Electric Service Tariff and with Commission regulations. The Company will normally provide the Electricity Supplier with actual or estimated meter read data within 72 hours of the Meter Read Date via Commission approved standards Off-Cycle Meter Reads. For informational purposes, the Company will perform an off-cycle meter read for a fee in accordance with Schedule 1. However, this meter read is for informational purposes only and will not impact the meters regular bill schedule or a Customer s switch Exceptions to Meter Reading. The Company has programs that result in delays or changes to Meter Read Dates and/or the conveyance of meter information. Account Terminations. If a Customer account is terminated, the Meter Read Date may be adjusted. In such cases, the meter read data will normally be sent within 72 hours of the actual Meter Read Date. Customer Requests. Whenever possible, the Company accommodates Customer requests that they P. S. C. Md. E-6 (Suppl ) Filed 12/31/0805/21/09 Effective 02/18/09 06/17/09