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AEP Ohio PPA Settlement Includes Customer Referral Program, Supplier Consolidated Billing Pilots

December 15, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

A non-unanimous settlement concerning AEP Ohio's proposal to enter long-term PPAs with affiliated generation, whose output would be sold into the wholesale market (not used for SSO) with costs/benefit allocated on a nonbypassable basis, includes a proposal for a pilot customer referral program and supplier consolidated billing program

The settlement proposes that AEP Ohio institute a customer referral program pilot, "providing an EDU third-party agent call transfer process to educate and enroll interested customers moving and initiating service and to establish a procedure for the offering of a standard discount rate providing a guaranteed discount off the price to compare without early termination fees."

Regarding supplier consolidated billing, AEP Ohio agrees to work with PUCO Staff and Signatory Parties to determine the parameters of a 2-year Pilot Supplier Consolidated Billing Program for any Competitive Retail Electric Service provider that is a Signatory Party.

Due to the nature of a pilot program, the supplier consolidated billing pilot would be limited to 5,000 customers per CRES Signatory Party for the first 6 months of active implementation.

Based upon bi-annual review and approval by Staff, AEP Ohio and Participating CRES Signatory Parties, the customer participation cap would be incrementally increased by 5,000 customers each six months not to exceed 20,000 customers for any individual CRES Signatory Party over the two year term of the pilot program.

Existing customers may remain on the Supplier Consolidated Billing Program upon completion of the 2 year term of the pilot until otherwise ordered by the Commission.

Signatory Parties retain the right to petition the Commission to expand the pilot cap or terms pending Commission consideration of future consolidated billing orders.

"The purpose of the pilot will be to provide the industry with data and information on the practicality of a supplier consolidated billing implementation in the Ohio Electric Choice Market," the settlement states

A participating CRES provider will agree to assume all EDU bill requirement administrative code rules and work with Staff and the EDU on consumer safeguards, including Ohio Administrative Code Chapter 4901:1-21 (without waiver unless recommended by Staff).

Participating suppliers agree to provide the Staff and the EDU with any and all information related to the pilot

The Staff, AEP Ohio and participating CRES providers (CRES) will meet to determine a methodology to govern the implementation including but not limited to the method of transfer and payment to the EDU of customer charges; as well as credit & collection procedures and purchase of receivables without recourse

The methodology to govern the supplier consolidated billing pilot would be established no later than six months from a final order approving a stipulation in the PPA proceeding. Participating CRES suppliers would have the ability to bill under the Pilot Supplier Consolidated Billing Program no later than 1 year from approval of the final opinion and order approving a stipulation in the PPA proceeding.

Costs related to AEP Ohio's implementation of the Pilot Supplier Consolidated Billing Program would be shared 50% by the CRES Signatory Parties. AEP Ohio's 50% share would be eligible for recovery in a future rate proceeding. The Commission Staff will study the costs needed to implement the pilot and include an analysis of the type of costs needed to expand the program and how that should be allocated among the providers.

Participating CRES suppliers would not be permitted to prohibit a customer from returning to the EDU consolidated billing. Participating CRES suppliers would not be permitted to charge a late payment fee greater than the EDU's tariffed late payment fee.

By the conclusion of the two year pilot program, Staff would file a report on the program which would include recommendations on the program, which may include expansion or retirement.

Any participating CRES's competitively sensitive information acquired by AEP and Staff under the Pilot Supplier Consolidated Billing Program would be afforded the appropriate confidential treatment.

See Related Story Today: AEP Ohio PPA Settlement Agreement Includes Proposal For Bypassable Adder to Default Service Rates

The stipulated PPA agreement would require AEP Ohio to enter into an eight-year power purchase agreement (ending May 31, 2024) for the capacity, energy and ancillary service output of AEP's 2,671 megawatt (MW) ownership share of nine generating units and AEP Ohio's 423 MW contractual share of Ohio Valley Electric Corporation (OVEC) generation. The nine generating units include Cardinal Unit 1 in Brilliant (Jefferson County); Conesville Units 4, 5 & 6 in Conesville (Coshocton County); Stuart Units 1-4 in Aberdeen (Brown County); and Zimmer Unit 1 in Moscow (Clermont County).

Products procured through the PPAs would be sold into wholesale markets (not used for default service), with costs/benefits allocated on a nonbypassable basis

The settlement was signed by PUCO Staff, AEP Ohio, Direct Energy, FirstEnergy Solutions, and IGS Energy (the only 3 CRES signatories), among others. Signing retail suppliers did not necessarily agree to support all aspects of the stipulation

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