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State Approves Process for Allocating Non-Shopping Customers Among Choice, SCO Suppliers
The Public Utilities Commission of Ohio approved, as designed by Staff, an allocation methodology to assign non-shopping non-residential customers at Columbia Gas of Ohio to a competitive supplier should an exit from the merchant function for non-residential service be triggered.
PUCO previously established triggers for a non-residential merchant function exit and assignment of non-shopping customers to competitive suppliers offering a Monthly Variable Rate (MVR). The allocation methodology is limited to non-residential customers and is based on each supplier's market share, including Standard Choice Offer (SCO) tranches.
The first step of the allocation methodology begins with the identification of non-residential customer accounts which are being served by an SCO supplier or Choice supplier in the month immediately preceding the date of exit. Once identified, the SCO customers will be allocated between two groups, one made up of Choice Suppliers and the other made up of SCO Suppliers who served SCO customers during the time period beginning January 9, 2013 and ending in the month immediately preceding the date of exit.
Accordingly, the SCO Supplier Group's percentage is calculated by dividing the total number of non-residential SCO customers by the total number of Choice Eligible customers; and the Choice Group percentage is calculated by dividing the total number of non-residential Choice customers also by the total number of Choice Eligible customers.
The resulting percentages are then multiplied by the total number of remaining SCO customers to obtain the number of SCO customers to allocate to the SCO Supplier Group and the Choice Supplier Group.
The second step involves allocating the SCO customers between suppliers within the SCO Supplier Group and within the Choice Supplier Group.
The allocation of customers within the SCO Supplier Group is based on the percentage of qualifying tranches held by each supplier in the SCO Supplier Group. That percentage is calculated by dividing each supplier's tranches accumulated during the tranche period by the total number of tranches awarded during the tranche period. The resulting percentages are then multiplied by the total number of non-residential customers allocated to the SCO Supplier Group, to arrive at the number of customers allocated to each supplier in the SCO Supplier Group.
The allocation of customers within the Choice Supplier Group is based on the percentage of the non-residential Choice market served, including governmental aggregations. That percentage is calculated by dividing each supplier's Choice customers by the total number of Choice customers for all Choice suppliers in the month immediately preceding the date of exit. The resulting percentages are then multiplied by the total number of SCO customers allocated to the Choice Supplier Group, to arrive at the number of customers allocated to each supplier in the Choice Supplier Group.
A third step involves allocating the SCO customers that remain unallocated after completion of the steps described above because an SCO supplier or Choice supplier, that was otherwise entitled to have an allocation of MVR customers, did not successfully register as an MVR supplier. These residual customers will be combined into a sub-group for a default allocation, with 70 percent of these customers allocated to MVR registered Choice suppliers, and 30 percent allocated to MVR registered SCO suppliers.
An example of the allocation calculation can be found starting on page 13 of Staff's methodology.
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July 31, 2014
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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com
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