Energy Choice
                            

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Retail Suppliers Seek To Include Offers, Choice Education In Utility Bill Inserts

August 31, 2016

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

Retail suppliers expressed concerns with a request from Direct Energy to require Delmarva Power in Delaware to send a bill insert informing customers of Direct's offers under its designation as the Electric Retail Supplier Exclusively Contracted by the State of Delaware, but were open to such promotion to the extent inserts were also used to promote other suppliers' offers and choice education

Click here for background on Direct's request

The Retail Energy Supply Association recommended that the PSC direct Delmarva Power to include two inserts in customers’ bills – one as requested by Direct Energy and a second that would afford other retail suppliers the opportunity to list or describe their current offers.

"[T]he use of two bill inserts fends off any argument that allowing only Direct Energy to be on a bill insert discriminates against other retail suppliers who are active in Delaware," RESA noted

The retail suppliers that desire to be included in the second insert would be required to pay their portion of the cost of the insert and Delmarva’s incremental mailing costs, RESA said (Direct Energy has proposed paying the incremental costs of its insert)

WGL Energy stated that it, "is concerned the Commission's approval of the Direct Energy Services, LLC ('Direct Energy') request will mislead Delaware customers to believe Direct Energy is Delaware's preferred supplier."

While WGL Energy asked that, if the Commission approves Direct's petition, then the PSC grant all suppliers the opportunity to exercise the same option, WGL Energy still said Direct would enjoy an advantage, "of appearing as the preferred supplier given their unique ability to identify their contract awarded by Delaware's Department of State."

Delmarva opposed Direct Energy's request, stating that it would damage electric choice

"Delmarva Power has consistently refused to allow any competitive entity to use its bill inserts. That prohibition applies not only to competitive retail electric suppliers and rooftop solar providers, but to any competitive business enterprise. Delmarva Power's bill inserts are intended for use by Delmarva Power to provide information that Delmarva Power determines to be important to its customers," Delmarva said

"Requiring Delmarva Power to allow a competitive retail electric supplier to use Delmarva Power's billing envelopes to advertise its offerings would result in an unfair competitive advantage and would, therefore, damage the competitive retail choice market to the detriment of Delmarva Power's customers. Direct Energy is seeking to use Delmarva Power's bill inserts to obtain unprecedented access to over 300,000 Delmarva Power distribution customers," Delmarva said

"Advertising the offerings of a competitive retail electric supplier through Delmarva Power bill inserts would also suggest that Delmarva Power has a preference for the products and services being offered by that supplier. The result would be detrimental to retail electric choice in Delaware," Delmarva said

The Public Advocate also opposed Direct's request. "DPA is concerned that such information coming in a Delmarva envelope will cause customers to think (mistakenly) that this information has Delmarva’s imprimatur, regardless of what the insert actually says," the Public Advocate said.

Docket 16-0744

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