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Utility Would Institute Pilots For Supplier Consolidated Billing; Billing of Non-Commodity Costs on Utility Bill Under Stipulation

January 31, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

A stipulation among several parties in Dayton Power & Light's proposed electric security plan proceeding would establish several pilot retail market enhancements

The stipulation was signed by DP&L, the Retail Energy Supply Association, IGS Energy, the City of Dayton, the Ohio Hospital Association, and certain discrete community agencies, environmental groups, and large customers.

Retail Market Enhancements & Issues

Utility Billing Of Non-Commodity Retail Supplier Charges

Under the stipulation, DP&L commits to implement within 12 months of a Commission order approving the stipulation, a pilot process to provide any competitive retail electric service (CRES) provider that is interested and qualified the opportunity to bill customers for non-commodity products and/or services on the customer's DP&L bill using bill-ready billing with the following qualifications:

a. Participating CRES providers must agree to pay 50% of the implementation costs associated with system changes to be shared equally by the participating CRES providers, and DP&L will develop and provide all interested CRES providers with an estimate of the total implementation costs. CRES providers that enter the program after its implementation must agree to reimburse other participating CRES providers on a pro-rata basis. The other 50% of the implementation costs will be included in nonbypassable riders or otherwise deferred for future recovery.

b. Payment posting priorities will continue to match those stated in the Ohio Administrative Code Section 4901:1-10-33(H); however, any non-commodity products and/or services will be considered "miscellaneous charges" and be paid last. If partial payments are made by the customer, it would be the responsibility of the CRES provider to pursue any collections regarding any non-commodity charges.

Supplier Consolidated Billing

Under the stipulation, DP&L agrees to work with Staff, RESA, and IGS to determine the parameters of a two-year pilot supplier consolidated billing program for any CRES provider that is qualified and interested. The purpose of the pilot will be to provide the industry with data and information on the practicality of a supplier consolidated billing implementation in the Ohio electric choice market. The pilot would include the following provisions:

• Due to the nature of a pilot program, the supplier consolidated billing pilot will be limited to 2,500 customers per CRES provider for the first six months of active implementation:

• Based upon biannual review and approval by Staff, DP&L, and participating CRES providers, the customer participation cap shall be incrementally increased by 2,500 customers each six months not to exceed 10,000 customers for any individual CRES provider over the two-year term of the pilot program.

• Existing customers may remain on the supplier consolidated billing program upon completion of the two-year term of the pilot until otherwise ordered by the Commission.

• The participating CRES providers will agree to comply with all bill requirement administrative code rules and work with Staff and DP&L on consumer safeguards, including Ohio Administrative Code Chapter 4901:1-21 (without waiver unless recommended by Staff).

• DP&L and participating CRES providers will meet to determine a methodology to govern implementation, including, but not limited to, the method of transfer and payment to the DP&L of customer charges, as well as credit and collection procedures and purchase of receivables at 100%, without recourse.

• The methodology to govern the pilot shall be established no later than twelve months from a final Commission order approving the stipulation

• Costs related to DP&L's implementation of the pilot supplier consolidated billing program will be shared 50 percent by participating CRES providers, and DP&L will develop and provide all interested CRES providers with an estimate of the total implementation costs. CRES providers that enter the program after its implementation must agree to reimburse other participating CRES providers on a pro-rata basis. DP&L's 50 percent share will be recovered in nonbypassable riders or otherwise deferred for future recovery.

• Participating CRES providers shall not prohibit a customer from returning to DP&L for consolidated billing.

• Participating CRES providers shall not charge a late payment fee greater than DP&L's tariffed late payment fee.

• Any participating CRES provider's competitively sensitive information acquired by DP&L and Staff under the pilot supplier consolidated billing program shall be afforded the appropriate confidential treatment

Opt-Out Of Nonbypassable PJM Non-Market Charges (NITS, Etc.)

Under the stipulation, DP&L agrees to deploy a "small-scale" pilot program providing an alternative means for customers to obtain and pay for services otherwise provided by or through the nonbypassable non-market-based transmission charge (TCRR-N).

More specifically, the purpose of this pilot program is to explore whether certain customers could benefit from opting out of DP&L's TCRR-N and obtaining, directly or indirectly through a certified CRES provider registered in DP&L's territory, all transmission and ancillary services through the Open Access Transmission Tariff and other PJM governing documents ("OATT") approved by the Federal Energy Regulatory Commission ("FERC"), in effect from time to time, as modified by FERC, and applicable to the zone in which the end user is located or whether the administrative burden to the Companies, and the cost and risk to the customer, would render this option impractical.

This pilot program will be for the term of the ESP and be limited to the first 50 accounts of Signatory or Non-Opposing Parties or members of Signatory or Non-Opposing Parties that do not take DP&L Standard Service Offer generation, are served at the primary voltage level and above, and notify DP&L in writing within 30 days of the approval of the stipulation.

Subject to and taking into consideration any existing contract with a CRES provider, the Pilot Participant shall work with its CRES provider to complete any necessary steps for the Pilot Participant to participate in the pilot program, including establishing a separate PJM subaccount, registering a DUNS+4 with DP&L and completing related EDI testing. Contingent on these necessary steps, the effective date for the Pilot Participant's opt-out of the TCRR-N, or any successor to the TCRR-N, shall be the next available meter read date following acceptance of the CRES provider's enrollment request via EDI after the date which the CRES provider verifies all of the necessary steps have been taken to provide the Pilot Participant with all services otherwise provided by or through the TCRR-N, including Network Integration Transmission Service ("NITS"). The effective date shall be no earlier than the effective date of an order approving the stipulation.

Such a Pilot Participant that has opted out shall not receive the benefits or be subject to the costs of TCRR-N or any successor to TCRR-N provided that they shall not be deprived of any costs or refunds arising from decisions issued by FERC or the Ohio PUC where such costs or refunds would flow through TCRR-N and are associated with the period during which they obtained service by or through TCRR-N and such costs or refunds are not otherwise available through the OATT.

See Related Story Today: Settlement Would Establish New Bypassable Adder To DP&L Default Service Rates

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