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PUC: Utility Has "Absolute Right" To Deny Off-Cycle Meter Read (Switch) Requested On Less Than Five Days Notice

September 13, 2016

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

The New Hampshire PUC has adjudicated several legal questions transferred to it by a Superior Court, concerning a complaint brought by PNE Energy Supply and Resident Power against Public Service of New Hampshire concerning PSNH's transfer of certain customers to default service in 2013 when PNE defaulted at ISO-NE

At such time, PNE had entered into an agreement for its mass market customers to be transferred to FairPoint Energy and initiated the transfer of such customers with PSNH; however, most of the transfers were not completed before PNE's default at ISO-NE, and PSNH moved such customers to default service, and also replaced any pending enrollments from PNE to FairPoint with enrollments onto default service

PNE had requested off-cycle reads for the customers, so that the entirety of the transfers could be completed prior to any default, but PSNH rejected such request, citing a lack of personnel to transfer 8,500 accounts manually on short notice. PNE argued that PSNH was required to complete the off-cycle reads per its tariff.

The PUC found that, "under the unique and extraordinary circumstances related to PNE’s default and suspension by ISO-NE in February 2013, PSNH did not violate any rule adopted nor any tariff accepted or approved by the Commission in (a) refusing to perform a one-time, off-cycle transfer of PNE customer accounts to FairPoint, (b) deleting 7,300 pending electronic enrollments for the transfer of PNE customers to FairPoint, and (c) replacing those deleted enrollments with electronic enrollments for the transfer of PNE customers to PSNH default service."

In so concluding, the PUC noted Puc 2004.07(b) provides as follows:

(1) In requesting an off-cycle meter reading, a CEPS:

      a. Shall give at least 5 business days’ written notice to the utility; and

      b. May be subject to a reasonable charge from the utility for such reading not to exceed the charge for performing an off-cycle meter reading for the utility’s customer as defined in the utility’s tariff;

(2) The utility may deny any request for an off-cycle meter reading if proper notice as described in (1)a. above is not provided; and

(3) To the extent a utility cannot accommodate a request for an off-cycle meter reading within 5 business days, the utility and CEPS shall negotiate a reasonable extension of time for the completion of the off-cycle meter reading request.

"Based on a review of the overall context and specific language of this rules provision, we disagree with PNE and Resident Power’s interpretation that a utility is required to perform any number of off-cycle meter readings on less than five business days’ prior notice," the PUC said

"Puc 2004.07(b)(2) provides that the 'utility may deny any request for an off-cycle meter reading if proper notice' is not given at least five business days prior to the requested off-cycle meter read date, as required under subsection (b)(1)a of the rule. Under subsection (b)(3), the utility is required to 'negotiate a reasonable extension of time for the completion of the off-cycle meter reading request' if more than five business days is required to accommodate the request, not less than five business days. The utility has an absolute right to deny an off-cycle meter reading request if it is not made at least five business days in advance under subsection (b)(2)," the PUC said

"Based on the foregoing interpretation, we find that PSNH had no obligation under Puc 2004.07(b) to perform thousands of off-cycle meter readings on less than five business days’ prior notice, as requested by PNE, and PSNH therefore did not violate the Commission’s rules in refusing to perform a one-time, off-cycle transfer of PNE customer accounts to FairPoint," the PUC said

Regarding the transfer of customers to default service, the PUC said, "[u]nder those circumstances, which resulted from PNE’s wholesale market suspension and waiver of the possibility to cure, PSNH was required by ISO-NE to provide default service to PNE’s former customers at least until their next regular meter read dates."

"PSNH’s deletion of the pending electronic enrollments for the transfer of PNE customers to FairPoint therefore represented a reasonable and appropriate action, consistent with the respective obligations of PSNH and PNE under the ISO-NE Tariff, that did not violate any rule adopted or any tariff accepted or approved by the Commission," the PUC said

The Court also asked the PUC to determine the propriety of PSNH’s replacement of the deleted electronic enrollments for the transfer of PNE customers to FairPoint with electronic enrollments for the transfer of those customers to PSNH default service.

"PSNH was justified in deleting the pending electronic enrollments in order to transfer the remaining PNE customers to default service as a result of ISO-NE’s suspension of PNE from wholesale market participation. It follows from this conclusion that PSNH also was warranted in replacing those deleted enrollments with enrollments confirming the customer transfers to default service," the PUC said

"Finally, we take note of the February 21, 2013, posting on the Commission’s public website of a notice stating that there would be no further transfers to FairPoint without the express consent of the customers. In view of that direction on behalf of the Commission, it was reasonable and appropriate for PSNH to take no further action to facilitate the transfer of customers to FairPoint after they had been moved to PSNH default service following PNE’s default and suspension by ISO-NE," the PUC said

Docket DE 15-491

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