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PUC Advances Placement of Supplier Logos on Utility Bills; Would Not Allow Value-Added Services on Such Bills

April 24, 2015

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

The Pennsylvania PUC issued a tentative order to develop a "joint" natural gas distribution company–natural gas supplier bill which would require that a supplier's logo be included on a utility consolidated bill, but would not permit the recovery of the cost of a supplier's value-added service on such joint bill.

Regarding value-added service, the PUC tentatively, "maintains its opinion as expressed in its Joint EDC-EGS Bill Final Order regarding the inclusion of value-added services in utility-consolidated bills."

"Specifically, we have concerns regarding the application of customer bill payments and the effect of non-payment for such value-added services. We do encourage the NGS [natural gas supplier] community to provide as much diversity in product and service offerings as possible to ensure a competitive and beneficial retail natural gas market; however, we agree that, at this time, NGDCs [natural gas distribution companies] should not be made responsible for the collection of NGS value-added services. Therefore, we will not, at this time, propose that the NGDCs be required to include additional line items for NGS value-added services charges," the PUC said.

Regarding the joint bills, the PUC proposes to require the inclusion of the retail supplier's logo on the utility consolidated bill, either be in black and white or in color.

"We propose that the NGDCs be allowed flexibility regarding the placement of NGS logos; however, we strongly suggest that the NGDCs place the logos as near to the NGS charges as possible to reinforce the connection between the supply charges and the supplier," the PUC proposes.

The PUC proposes that four lines on each NGDC's bill be provided for retail supplier NGS messaging. "However, we recognize that there may be differences between electric and natural gas bills and, therefore, request that stakeholders, especially the NGDCs, provide more information on the existing amount of NGS bill messaging space provided on NGDC bills and feedback on the feasibility and appropriateness of providing four lines of messaging space," the PUC said.

The PUC also "encourage[s]" retail suppliers to use such messaging space to provide contract expiration information, such as the expiration date, to customers.

The PUC further proposes that utility-consolidated bills include a Shopping Information Box that includes a customer's account/customer number (whichever is applicable to effectuate a switch to an NGS), a customer's Rate Schedule and an indication that this information is needed when shopping with an NGS. "Additionally, following a review of the Shopping Information Box initiative on the electric side, we again believe the inclusion of language regarding contract expiration is beneficial to increase customer awareness of potential supply contract expiration dates. Therefore, we propose that the Shopping Information Box also include a statement reminding customers to know their contract expiration date," the PUC said.

The PUC's tentative order would not require utilities to include retail supplier inserts with bills, though it invited further comments on the issue.

"While the Commission recognizes that NGS inserts may provide a customer with more information regarding the product he or she is currently receiving or regarding other options that may be available, we are concerned with the potential for increased costs and complexities attendant to inserts. Additionally, because an insert would need to be provided at some point in time before the bill is mailed, it is possible that some of the inserts may be outdated by the time they are received by customers. However, we do not believe we have enough information, at this time, to show that the benefits of inserts would outweigh the costs and complexities. Accordingly, we request that parties provide comments regarding the practical inclusion of NGS inserts," the PUC said.

The PUC also reiterated that, "we will not, at this time, be reviewing the possibility of supplier-consolidated billing in the retail natural gas marketplace."

The PUC suggests costs of implementing the joint natural gas bill be recovered from all distribution customers on a nonbypassable basis through a surcharge or some similar mechanism, but welcomed comments on the issue.

The Commission proposed that the joint NGS-NGDC bill be implemented no later than June 1, 2016.

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