West Penn Power Files to Institute Charge of $6 Per Utility Consolidated Bill Email
This Story November 4, 2010
West Penn Power (Allegheny) has filed with the Pennsylvania
PUC changes to its electric generation supplier (EGS) coordination tariff to, among
other things, institute a new charge of $6 per utility consolidated bill per month
to recover programming costs for the new Purchase of Receivables program (R-2010-2207938).
The filed tariff has an effective date of January 1, 2011, and nothing indicates
that the $6 consolidated billing fee would have a separate effective date.
The utility consolidated billing charge of $6 per bill per month will be calculated
each month based upon the number of utility consolidated bills issued on behalf of
the supplier. This charge will be collected until the programming costs for Purchase
of Receivables (estimated to be $235,025 during 2011) are fully recovered.
The filed tariff also includes a new Purchase of Receivables program, which also
does not indicate a separate effective date apart from January 1, 2011. As part
of the pending non-unanimous settlement in the FirstEnergy-Allegheny Energy merger
proceeding, a revised POR program would be implemented, within three months of the
integration of West Penn Power into FirstEnergy's computer enterprise system.
The POR program as contained in the new supplier coordination tariff would purchase
supplier receivables billed under utility consolidated billing at 100%, though suppliers
will be subject to the utility consolidated billing fee described above.
The POR program contained in the tariff states that if the EGS's customer is on an
Average Payment Plan, Allegheny shall only be obligated to purchase each month the
amount of the monthly installment under the Average Payment Plan. For the Rate Ready
Option of utility consolidated billing, Allegheny shall only be obligated to purchase
each month the amount of the monthly installment under the Average Payment Plan.
For the Bill Ready Option of utility consolidated billing, the customer's Average
Payment Plan billing will be adjusted to reflect Allegheny's regulated non-basic
electric supply charges and the full amount of the EGS charges submitted.
Under the program to be instituted under the FirstEnergy-Allegheny settlement, for
budget billing situations, Allegheny would pay the EGS for the actual, current charges
and not the budgeted amount.
Under the POR program contained in the tariff, Allegheny will only purchase charges
associated basic electric supply, which includes renewable energy or RECs bundled
with underlying generation service (essentially the same definition as under the
Under the filed tariff, if an EGS is providing a customer with a service or product
that does not meet the definition of basic electric supply, the EGS shall be permitted
to issue a separate bill for such service or product in accordance with dual billing
for that customer if the EGS provides written certification to Allegheny that the
service or product cannot be billed under utility consolidated billing.
Other notable changes in the supplier tariff include a revised credit requirements
section, including qualifications for unsecured credit. An EGS can satisfy Allegheny's
credit requirements and receive an unsecured credit limit by demonstrating that it
has, and maintains, investment grade long-term bond ratings from at least two of
the following four rating agencies: Standard & Poor's, Moody's Investors Services,
Fitch IBCA, and Duff & Phelps Credit Rating Company.
An EGS that is unable to meet the above credit criteria may choose from any of the
following alternative credit arrangements: an irrevocable letter of credit; surety
bond; cash deposit; guarantee from a parent entity with an investment-grade bond
rating from at least two of the four previously identified rating agencies; including
Allegheny as a beneficiary; or other mutually agreeable security or arrangement.
Allegheny will require an initial credit amount of $25,000 for an EGS that does not
qualify for unsecured credit, with adjustments commensurate with Allegheny's net
financial exposure to an EGS. The $25,000 credit requirement provides security for
Allegheny for costs it could incur based on Allegheny's actual experience with a
defaulted EGS, and the current financial exposure resulting from rebilled amounts
of Allegheny consolidated billing after customers have switched to dual billing.
Section 5 of the supplier tariff has been revised to reflect customer options for
the release of certain account information; describe data available from the eligible
customer list and from pre-enrollment requests; outline the procedure to formalize
a customer enrollment from an EGS; describe the procedure for a customer to discontinue
service to an EGS or an EGS to discontinue service to a customer; and provide for
an EGS-specific customer information sync list.
Per the tariff, Allegheny will begin posting historical unaccounted for energy values
to the EGS support website.
Section 9 of the EGS Tariff expands the detail on the procedure for utilizing multiple
scheduling coordinators performing EGS responsibilities, including capacity obligation,
load forecasting, import capability, load scheduling, and reconciliation rights and
responsibilities. Allegheny will increase the amount of scheduling coordinators
per EGS from 3 to 10.
The tariff provides that Allegheny will fulfill a non-EDI request for customer load
information available on its information system once per calendar year for no charge.
Any electronically available load data, if requested in a calendar year in which
Allegheny has already provided such data once for no charge, will be provided for
a fee of $53 per hour, billed in 15-minute intervals. There is no charge for customer
load data requested through EDI.