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Group Seeks "Retroactive" Reinstatement of Prior PPL Time of Use Default Service Option (Administratively Set Rates Vs. Retail Supplier Option)

December 28, 2016

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

The Dauphin County Industrial Development Authority has requested that the Pennsylvania PUC implement PPL's prior Time of Use default service program, which relied on administratively determined rates, given a court order finding that reliance on retail suppliers to fulfill PPL's TOU obligation did not comply with statute, with the Development Authority seeking "retroactive" reinstatement of the prior TOU option.

PPL's original TOU generation service program used administratively set rates. Due to the process for setting such rates, at one point both on-peak and off-peak rates were below the standard fixed price PPL default service rate, resulting in large under-collections. Later reconciliations were applied to the TOU rates, customers migrated from the higher rates to standard default service. The PUC eventually froze PPL's TOU rates as it examined alternatives to the program, eventually resulting in a program where PPL did not offer a TOU rate as an LSE, but instead directed customers to retail suppliers which offered a TOU option under certain parameters defined in PPL's tariff (but with the rate set by the retail supplier). The new retail supplier-based TOU program was effective December 10, 2014.

As previously reported, the Commonwealth Court found the reliance on retail suppliers inconsistent with PPL's obligation as default service provider to offer customers a TOU rate option, and the case has been remanded to the PUC

The Dauphin County Industrial Development Authority said that such remand compels the PUC to reinstate the last-approved TOU program at PPL.

The PUC must, "immediately restore the prior time-of-use ('TOU') price option in the service area of PPL Electric Utilities," the Dauphin County Industrial Development Authority (DCIDA) said

"DCIDA submits that, to comply with the Commonwealth Court's DCIDA Order, the Commission must take immediate action to restore the prior TOU price option, as it existed prior to the effective date of the 'new' TOU Option which was rejected by the Court. In DCIDA, the Commonwealth Court held that PPL has a statutory duty to offer TOU rates to all customers, including customer-generators. That Opinion further directed the Commission to conduct 'further proceedings,'" DCIDA said

While, as recently reported (see story), the PUC has set a process for consideration of default service TOU programs on remand, this, "does nothing to address the continued violation of the duty to offer TOU rates to all customers, including customer-generators,"

"To comply with the Commonwealth Court's directives, the Commission is required to reinstate the status quo: It must act to protect the statutory rights of PPL' s customers, and cannot permit the continuance by PPL of an unlawful price option," DCIDA said

"The prior TOU price option is the last actual, peaceable and lawful, non-contested status that preceded the controversy on the new TOU Option. The prior TOU rate option existed until it was replaced by the new TOU Option on December 10, 2014. The immediate restoration of the prior TOU price option, retroactively to December 10, 2014, would (a) return to the status quo, (b) protect the statutory rights of the customers, and (c) reinstate rates and terms that were approved by the Commission and are consistent with PPL's statutory duty. By returning to the status quo, the Commission will be addressing the problems at hand: The immediate protection of the customer's statutory rights, the need for a remand proceeding, and PPL's continuing failure to comply with its statutory duty. Such restoration of the prior TOU rate option would be similar to a situation in which the Pennsylvania Courts would reverse a rate increase approved by the Commission and the utility's prior rate would go into effect pending additional proceedings. As the prior TOU rate option was found by the Commission to be just and reasonable, that presumption continues and supports its restoration," DCIDA said (emphasis added)

DCIDA did not explain logistics of retroactively applying the prior TOU program to service beyond December 10, 2014

"Customers are being harmed by the delay in restoring the status quo. No justification exists for continued delay or for the continuation of a price program declared unlawful by the Commonwealth Court. Delay is not in the public interest. The delay in restoring the prior TOU price option is denying customers their statutory rights to have a TOU rate option. Delay is also preventing customers from using rate schedules that are more advantageous to the customer. For example, during the litigation of the new option, DCIDA and others similarly situated have been, and are being, denied their statutory right and the benefits of participating in the TOU price option for (1) part of PJM Delivery Year 2015 (i.e., from December 10, 2014 through May 31, 2015), (2) all of PJM Delivery Year 2016 (i.e., from June 1, 2015 to May 31, 2016), and (3) part of PJM Delivery Year 2017 (i.e., from June 1, 2016 to present).

Further, waiting for PPL to file a new proposed TOU program following the entry of a Commission order in the DSP IV Program will mean that customers are denied access to such a program for the entire PJM Delivery Year 2017," DCIDA said

"Should the Commission fail to take action to protect said statutory right by February 9, 2017, DCIDA will be forced to file a petition with the Commonwealth Court seeking to compel the Commission to comply with the Commonwealth Court's Order," DCIDA said

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