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Take Two: Pennsylvania 'Intends' to Shorten Switching Period to 'Three Days'; Eliminate 10-Day 'Waiting Period'

March 18, 2014

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Copyright 2010-13 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

The Pennsylvania PUC, "intends to promulgate a rulemaking which will amend existing Regulations at 52 Pa. Code, Chapter 57 to direct EDCs to accelerate switching time frames through off-cycle meter reads in a fashion that will permit Pennsylvania retail electric customers to switch suppliers within three (3) days or less," the PUC said in a Secretarial Letter yesterday.

"Due to the recent impact of wholesale electricity market price increases on Pennsylvania consumers, and concerns that similar events could occur again in the immediate future, the Commission has determined that the public interest requires extraordinary measures to be taken. Accordingly, for good cause, the rulemaking will take the form of a 'final-omitted' proceeding. See, 45 P.S. § 1204(3); 71 P.S. §§ 745.5a and 745.6. However, due to the nature of the changes the Commission will direct, a draft of the proposed regulations is attached to this Secretarial Letter in order to provide an opportunity for those entities most affected to provide comments. The Commission requests that all comments address the proposed changes, the practicality of implementing the proposed changes within six-months of their effective date and the costs of doing so. Cost recovery for implementation is anticipated to be addressed in each EDC's next base rate proceeding," the PUC said.

The PUC's specific proposal would require electric distribution companies to perform switches, "within 3 calendar days of the receipt by the EDC of the electronic enrollment transaction."

References to the "10-day waiting period" in the current rules are proposed to be deleted.

In executing the 3-day switch, "the EDC shall obtain an actual meter read, use an estimated meter read or use a customer-provided meter read. In instances where estimates are used, the estimated meter read shall be updated when an actual meter read is obtained to reflect the customer's actual usage through the customer's normal meter read cycle," the PUC said.

Additionally, the proposed rule would require that electric generation suppliers, "shall notify the EDC of the customer's EGS selection at the end of the 3-business day rescission period provided in § 54.5(d) (relating to disclosure statement for residential and small business customers) with customer consent or a future date that will initiate supply service with the selected EGS product on the date specified by the customer. If no consent for the 3-business day hold or other delay is given by the customer, then the EGS offering the selected EGS product shall notify the EDC by the end of the next business day following the customer contact."

The Pennsylvania PUC previously examined the potential to shorten the switching timeline, and although an early proposal included elimination of the 10-day waiting period, it was ultimately retained in the PUC's final order. That meant the PUC's action only shortened the switching timeframe by five days from 16 to 45 days to 11 to 45 days.

"As of March 14, 2014, more than 12,283 consumers have contacted the Commission with concerns about electric supply prices, many of whom have expressed frustration with the time it takes to change suppliers. Of those, more than 4,775 consumers have filed informal complaints with the PUC's Bureau of Consumer Services," the PUC said in a news release.

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