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Pennsylvania Opt-In Auctions to Exclude Small Commercial Customers, Final Short-term Workplan Approved

March 1, 2012

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Copyright 2010-12 Energy Choice Matters

The Pennsylvania Public Utility Commission (PUC) today finalized an intermediate work plan as part of its Retail Electricity Markets Investigation designed to improve the state's retail electricity market.

A written order was not available as of press time.

However, according to a statement from PUC Chairman Robert F. Powelson, the opt-in retail auctions required under the workplan will be limited to residential customers.

"During my deliberations, I strongly considered whether small commercial and industrial customers should be included in this program but ultimately decided not to include this group, Powelson said.

"However, I remain open to designing a similar measure for the business community in the future and will be closely watching the residential opt-in auction. I believe that the experience gained from this process as well as focusing on this segment of customers during our upcoming en banc hearing will allow the Commission to make an informed decision on a possible second auction," Powelson added.

According to a news release, the Commission voted 5-0 to adopt the intermediate work plan, which provides a framework for more specific action items pending before the Commission.

"I strongly believe that the steps taken today will significantly improve the competitiveness of our retail electricity market and enhance the ability of our electric generation suppliers to compete across the state," said Powelson.

The intermediate work plan provides recommendations and proposals regarding the:

• Expansion of consumer education to drive electric customers to www.PAPowerSwitch.com, the PUC's website dedicated to helping consumers shop for electricity, and to increase general awareness of competitive markets and how to shop;

• Initiation of a customer referral program;

• Initiation of a retail opt-in auction program;

• Improving the presentation of the EDCs' price to compare on customer bills; and

• Increase in coordination between EDCs and EGSs.

The proposal calls for all issues and goals included in the intermediate work plan to be implemented prior to or in conjunction with the expiration of the electric distribution companies' next round of default service plans.

The Commission will hold an en banc hearing on March 21, 2012, beginning at 10 a.m. at the Commonwealth Keystone Building in Harrisburg to address statewide consumer education, shopping experiences of small and medium business customers and End State default service models.

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