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Pa. PUC Issues Emergency Order Preventing EDCs From Implementing Disputed POR Clawback Charge, Refers Matter To ALJ

October 27, 2016

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

Granting, in part, relief requested by Respond Power, LLC, the Pennsylvania PUC Vice Chairman Andrew Place issued an emergency order requiring Penelec and West Penn to cease and desist from implementing a POR Clawback charge until Penelec and West Penn have filed the appropriate tariff supplements and obtained the Commission's approval thereof, or November 27, 2016 whichever occurs later

As previously reported, Respond Power is disputing imposition of a POR Clawback charge and the FirstEnergy utilities threat to withhold nearly $500,000 in payment of receivables as an offset to the clawback. Respond Power has called the clawback impermissible retroactive ratemaking, noting that, although approved in the FirstEnergy EDCs' default service proceeding for the period beginning June 1, 2017, the clawback being sought is related to write-offs and prices for the period from August 31, 2015 through August 31, 2016.

The PUC's emergency order does not reach the merits of Respond's arguments, and the order referred such issues to the Office of Administrative Law Judge for further review

However, the emergency order did order that the FirstEnergy EDCs at issue (Penelec and West Penn) shall cease and desist from implementing Clawback Charges from Respond until Penelec and West Penn have filed the appropriate tariff supplements and obtained the Commission's approval thereof, or November 27, 2016, whichever occurs later

The presiding administrative law judge may extend the end date of the cease and desist period

In granting such relief, the PUC emergency order noted, "while the First Energy Default Service Order approved the implementation of the Claw back Charge pilot program beginning September 2016, it did so subject to the filings of proposed tariff language contained in the Joint Settlement."

"While Respond avers that Penelec and West Penn have acted in accordance with the approved pilot [clawback] program, Commission records indicate that Penelec and West Penn have not filed tariff supplements to implement the POR Claw back Charge pilot program nor has the Commission approved such tariff supplements, " the PUC's emergency order said

"Penelec and West Penn have not filed the required compliance filings to implement the POR Clawback Charge pilot program. As such, the PUC has not approved the tariff language under which Penelec and West Penn could validly act," the PUC's emergency order noted

"Respond also argues that its need for relief is irreparable and immediate because withholding $484,797 on short notice would severely interrupt its cash flow and would jeopardize its ability to serve its retail customers," the PUC noted. Given this, and the lack of an approved tariff, "[t]he issuance of an emergency order ... is appropriate," the PUC said

The PUC set a process for the FirstEnergy EDCs to answer Respond's petition.

The PUC's emergency order shall be placed on the Agenda of the November 9, 2016 Public Meeting

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