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Pa. Utility Files To Assign Costs, Via POR Discount, To Retail Suppliers For New Account Number Look-up Tool

January 11, 2016

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

Philadelphia Gas Works has filed a compliance plan to implement a remote account number access mechanism, which would allow retail suppliers to obtain a customer's account number in situations where the customer does not have their bill handy (i.e. shopping mall kiosks, etc.), and proposes to assign 70% of the costs of the tool to retail suppliers

The Pennsylvania PUC had encouraged NGDCs to consider assigning part of the costs of the mechanism to retail suppliers in directing implementation of the programs

PGW proposes that 70% of costs be recovered through an administrative discount on the Purchase of Receivables, "since such a percentage would encourage NGSs that participate in PGW’s POR program to use the mechanism and to recognize the fact that the mechanism is intended to help suppliers in enrolling residential and small commercial customers."

"As noted in the Final Order, the Commission believes that a mechanism would prove beneficial in the gas market by increasing competition. Given that PGW’s POR is just beginning, encouraging NGSs to use the mechanism could assist in increasing gas competition in Philadelphia. The remaining 30% of costs would be recovered through the existing Restructuring and Consumer Education Surcharge funded by all PGW firm ratepayers," PGW said.

PGW’s updated cost estimate for the design and implementation of its account number access mechanism is approximately $60,000. The costs associated with ongoing operation and maintenance, including the updating and storage of ongoing data, are estimated to be $12,500 per year.

Elsewhere, the three Peoples Natural Gas utilities proposed the following regarding cost recovery: "In regards to cost recovery, the Company proposes a cost sharing mechanism whereby the costs would be recovered from residential and small business ratepayers. To effectuate this cost sharing mechanism, the Company proposes to recover the implementation and annual costs through new riders that would be applicable to all residential and small business customers. These riders will be submitted to the Commission through separate tariff filings for the Peoples Division, the Equitable Division and for Peoples TWP with a proposed effective date of August, 31, 2016. The riders will contain proposed new surcharges applicable to residential and small business sales and transportation customers and will be determined based on the total implementation and annual ongoing operating and maintenance ('O&M') costs separately allocated to the Peoples Division, Equitable Division and Peoples TWP based on total residential and small business customers of each division/Company. Such riders would be annually reconcilable to actual costs incurred."

The Peoples NGDCs reported an initial cost for implementation of $85,500 plus annual ongoing regular operation and maintenance costs of $10,000.

In regards to other issues, such as the use of wildcards, PGW said that its mechanism will contain the required input fields: the customer’s full name, the service street address, and the five-digit postal code, and that it expects to be able to add additional input field functionality, such as drop-down boxes or wildcards strictly for street type and/or postal codes.

"However, no other drop-downs or wildcards are being considered at this time due to concerns about the possible effects on customer privacy and protections. Including this functionality for a customer’s name or street address may increase the risk of false returns, or increase the likelihood that the mechanism would provide an account number for a different customer," PGW said

For inquiries that return errors, PGW does not intend to identify the fields that may be causing the failures because the company may not be able to identify who might be the correct customer without correct and complete customer information

At the Peoples NGDCs, "If there is not a match on the exact information [inputted], we will then allow a wildcard for first name and require an exact march on the 'last name' in conjunction with an exact house number, street name and 5 digit zip code. In the case of a small business name, a wildcard entry will also be permitted. With this wildcard search, we will return a list of potential accounts. The NGS can then choose the correct account based on the information the customer's provided to the NGS."

Regarding a start date, PGW’s current expectation is that the mechanism will be available for supplier use by August 31, 2016, contingent on timely approval of its compliance plan. The Peoples NGDCs do not foresee any issues with launching the mechanism by August 31, 2016

Docket M-2015-2468991

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