Energy Choice
                            

Matters

RESA: Pa. Utility Filings Further Entrench Relationship Between Monopoly EDC and Traditional Customer Base

January 6, 2016

Email This Story
Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

Filings by the Pennsylvania electric utilities to comply with Energy Efficiency and Conservation (EE&C) requirements under Act 129, "serve[] to further entrench the relationship between the monopoly EDC and its traditional customer base while not considering reasonable opportunities presented within the EE&C Plans to leverage the competitive market," the Retail Energy Supply Association said in similar comments filed on each of the EDCs' plans

As noted previously by RetailEnergyX.com, the latest round of EE&C proposals in some cases further expand the EDCs' roles in energy efficiency in conservation from traditional utility-offerings (weatherization, etc.) into more "smart energy" products which are also offered by competitive providers, such as PECO's smart thermostat and behavioral demand response programs

RESA said that "Based on a review of the Phase III EE&C Plans, there does not appear to be any recommendations regarding the interplay of these plans with the competitive market. As such, RESA is concerned about how continuing down this path serves to further entrench the relationship between the monopoly EDC and its traditional customer base while not considering reasonable opportunities presented within the EE&C Plans to leverage the competitive market."

RESA conceded that the statutory requirements of Act 129 are directed specifically to EDCs, "which impedes RESA's ability to advocate for its preferred policy outcome- shifting all EE&C programs to the competitive market."

However, RESA said that the PUC could still structure the EE&C programs in a way that supports the efficiency and conservation offerings from competitive providers -- which the PUC has encouraged such competitive providers to offer.

"This issue is becoming increasingly important now," RESA said. "This is because the EDCs continue to refine, tweak and further expand the EE&C Plans making consumers more likely to perceive these offerings as only available from the traditional monopoly provider or otherwise reinforce the EDC-customer relationship. This misperception cements the relationship of the EDC and the consumer in contravention of the requirement of the Competition Act to foster the development of a competitive retail market. In other words, there is a real risk that the EDCs' EE&C Plans will eventually 'crowd out' similar competitive market offerings."

"In addition, as highlighted in the Web Portal Working Group Reconsideration Order, EGS access to the data infrastructure of the EDCs necessary to acquire near real-time customer data so that EGSs can offer energy efficiency and demand response products continues to be a struggle in Pennsylvania. Thus, to the extent EDCs can and do offer consumers benefits through the EDC EE&C Plans that EGSs are unable to offer due to a lack of access to needed customer information, EGSs are placed at an unfair competitive disadvantage," RESA said

RESA recommended that the Commission convene a stakeholder collaborative with the express purpose of exploring opportunities to better leverage the competitive market and mitigate competitive harm

One specific recommendation from RESA is that any rebates or consumer benefits offered as a part of participating in any of the EE&C programs should be available to all customers whether shopping or non-shopping. So, for example, if an EGS is offering a product or service similar to the EDC EE&C offering, then the shopping customer should receive the same benefit. Thus, if an EGS offers a smart thermostat, home energy audit, or in-home energy management device that is comparable to the EDC EE&C program, then the customer should receive the same benefit- whether that involves a rebate or an on-bill credit.

RESA also saw a role for EDCs in promoting similar EE&C offerings from competitive providers. This could include a link to competitive supplier offers on a specific EDC's website devoted to an EE&C program, or including information about comparable competitive market products and services in any mailings or bill inserts from the EDC regarding its EE&C programs.

Docket M-2015-2514767 et. al.

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Channel Marketing Manager -- Retail Supplier -- Houston
• NEW! -- Marketing Assistant -- Retail Provider -- Houston
• NEW! -- Financial Controller -- Retail Supplier -- Houston
• NEW! -- Sr. Energy Analyst -- Texas
• NEW! -- Structuring Analyst -- Retail Supplier -- Houston
• NEW! -- Manager, Commercial Client Services -- Retail Supplier -- Houston/DFW
• NEW! -- Account Coordinator
• NEW! -- Customer Account Manager -- Retail Supplier