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NOPEC Requests that PUCO Suspend License Application of Broker/Aggregator
March 16, 2012
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Copyright 2010-
The Northeast Ohio Public Energy Council (NOPEC) has asked the Public Utilities Commission of Ohio to suspend the application of Northeastern Ohio Residential Aggregation, Ltd. (NORA) for an electric broker/aggregator license.
The application of Northeastern Ohio Residential Aggregation, Ltd. was first reported by Matters.
Aside from alleging various technical deficiencies in Northeastern Ohio Residential Aggregation, Ltd.'s application, NOPEC alleged that, "the Application appears to violate Ohio's longstanding public policy and laws favoring both the competitive electric marketplace and governmental aggregation."
Northeastern Ohio Residential Aggregation, Ltd. indicated that it work with residential landlords, and would sign up residential tenants when they sign residential leases, combine the tenants' electric loads, and then contract with other CRES providers, for a fee, to provide retail electric service.
The Application indicates that, "NORA's business model contemplates that customers will voluntarily join or 'opt-in' to the NORA aggregation program as members through a membership application agreement offered at the time prospective members enter into their leases with participating landlords, who will act as agents of NORA for that limited purpose."
NOPEC said that, in essence, "tenants would sign up as participants in NORA's aggregation before registering with the applicable electric distribution utility ('EDU') as a customer, which effectively provides a 'head start' (and unfair advantage) to the applicant over all other CRES providers."
"This is because all other CRES providers, and in particular governmental aggregators (e.g., NOPEC), must wait to receive a list from the EDU of new customers eligible for a governmental aggregation program before soliciting these new utility customers," NOPEC said.
Although NOPEC does not elaborate, its use of the term "must wait" in soliciting new customers is not believed to mean any legal or regulatory obstacle, but rather logistic. In other words, nothing prevents a competing supplier or governmental aggregator from soliciting a customer prior to the receipt of a new customer list if the supplier or governmental aggregator becomes aware of the new customer through other means, as NORA proposes to do.
NOPEC continues: "If the new utility customer is already signed up by the applicant before the CRES provider can get the eligible customer list from the EDU, then the tenant would not have the opportunity to participate in their community's opt-out governmental aggregation program, and other CRES providers would be prevented from soliciting the tenants as new retail customers."
NOPEC alleged that, "The arrangement contemplated by the applicant in this case threatens the competitive marketplace in the CEI and OE service territories by: 1) giving NORA an unlawful competitive advantage over other CRES providers and governmental aggregators by getting a 'head start' in enrolling customers before their new accounts are set up by the EDU; and 2) preventing eligible customers from participating in voter-approved governmental aggregation programs."
NOPEC further said that, "a landlord could tie the requirement of signing up for CRES service through NORA as a condition to approving the tenant's credit or lease application for an apartment at electricity prices that may not be the most favorable for the tenant."
"This practice ...is potentially misleading and deceptive in violation of R.C. 4928.10 and OAC Rule 4901:1-21-05," NOPEC alleged.
Email This StoryCopyright 2010-
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