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Matters

Pa. Utility Files Default Service Plan

May 9, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

UGI Utilities, Inc. – Electric Division has petitioned the Pennsylvania PUC for approval of a default service plan covering the period June 1, 2017 through May 31, 2021

UGI proposes to maintain the default service structure and procurement design approved for its current default service plan, which, for non-hourly customers, includes about 50% of load procured through full requirements load following contracts, and 50% through block purchases

More specifically, for GSR-1 Group (under 100 kW) customers, UGI would acquire 50% of the estimated annual requirement through full requirements contracts, acquired in two tranches, except for approximately 2,833 MWh per year of supply acquired from the New York Power Authority and minor purchases of power acquired pursuant to the mandates of the Commission's net metering regulations.

The two tranches of load-following service would be solicited in requests for proposal conducted in the months of September or October and March or April preceding each annual procurement period beginning on June 1, except to the extent the initial fall 2016 procurement is delayed by the approval process for the default service petition

The remaining 50% of the estimated annual requirement for all GSR-1 Group default service customers will be procured from the purchase of blocks (7x24 and 5x16) and spot purchases and sales from and into the PJM market. UGI will also procure any necessary AEPS credits, ancillary services and, where prudent, any congestion management services, and will serve as the load serving entity for this portion of default service supply. UGI proposes to stagger the procurement of blocks and load-following services in a manner similar to its existing default service plan

The initial GSR-1 rates will be determined by adding the volumetric load-following service cost, the block procurement costs, ancillary and transmission procurement costs, associated load serving entity costs, AEPS costs and any unrecovered or over-recovered pre-June 1, 2017 default service cost/AEPS balances, and dividing the resulting amount by expected annual sales.

The initial rate would be incorporated into UGI's tariff no later than May 2, 2017, and at 30 days in advance of each subsequent quarter, and would be subject to quarterly adjustments to reflect actual and projected changes in costs and the recovery or refund of pre- June 1, 2017 default service cost balances.

Hourly-priced default service pricing would apply to customers at or over 100 kW (GSR- 2 Group)

UGI proposes to continue to make available, based on supplier interest and suppliers' expense, a Standard Offer customer referral program. Such a program has been available, at supplier's expense, since UGI's prior default service program began in 2014.

UGI has estimated that it would cost approximately $10,000 per month to operate the Standard offer Program due to estimated increased call time at UGI's call center. This monthly $10,000 charge would be allocated to participating suppliers on a per capita basis.

During the three-year term of the current default service plan, only one EGS expressed interest in serving the residential market in UGI's service territory. This EGS informed UGI it was no longer interested after receiving initial information about the Standard Offer program.

There are currently no EGSs offering residential service in the UGI service territory, UGI said. Though not explicit this seemingly confirms that any "residential" customers shown as on competitive supply in PA Power Switch reports are residential-classified meters associated with a non-residential account

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