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PUC Excludes Non-Commodity Costs from Utility Consolidated Billing, POR (Utility Affiliate Continues To Bill Its Services)

April 3, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

The Public Utilities Commission of Ohio, in adopting a Duke Energy Ohio electric security plan for the three-year period beginning June 2015, approved a continuation of Duke Energy Ohio's electric purchase of receivables program, but ruled that non-commodity costs shall be excluded from both POR and utility consolidated billing.

Duke Energy Ohio had proposed to eliminate the ability for retail suppliers to place non-commodity charges on utility consolidated bills (via bill ready billing).

In its order, PUCO found that, "at this time, the Company's assertion that bill-ready billing should be limited to only electric commodity charges is reasonable."

"The Commission notes that the tariff defines what 'commodity' means and later provides examples of what is considered 'noncommodity.' Because all customers must bear the cost of unpaid bills, and because the evidence in these cases reflects that Duke does not have the technology to separate commodity and noncommodity charges, the Commission does not find it reasonable to allow various noncommodities to be added to the bills," PUCO said.

Retail suppliers have called the exclusion of their non-commodity costs discriminatory, as Duke currently places non-electric [non-commodity] charges for itself and its unregulated affiliate Duke Energy One on the utility bill (see prior story)

"In regards to the Company's affiliate, Duke Energy One, the Commission points out that, because it does not provide retail electric service, the entity is not parallel to a CRES provider," PUCO said.

PUCO denied, at this time, Duke Energy Ohio's proposal to make POR mandatory for CRES providers using utility consolidated billing.

"Although a high percentage of CRES providers using the consolidated bill service choose to also enroll in the POR program, the Commission does not feel it is reasonable at this time to force the decision. Duke's main rationale for making POR mandatory is to develop operational consistency and to prevent spending additional administrative costs. At this time, very few providers choose not to enroll in POR; however, situations and markets can change and the burden on Duke to allow such an option currently does not rise to a level that should restrict freedom of choice," PUCO said.

PUCO, in the ESP case, denied a request from Duke Energy Ohio to change the definition of interval meter, which had been opposed by retail suppliers as potentially restricting the information they receive. However, PUCO said that issue should be addressed in an ongoing case regarding the sharing of meter information.

The Commission also denied Duke Energy Ohio's proposal to require, as a condition of supplier coordination service, that retail suppliers agree to participate in any resettlement process at PJM initiated by Duke Energy Ohio.

PUCO also rejected the following retail market enhancements proposed by retail suppliers in the proceeding: a customer referral program, further unbundling of distribution rates, and an Enroll From Your Wallet program. PUCO said that the ESP case is not the appropriate forum for such proposals

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