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Utilities: Retail Suppliers Obligated To "Cooperate" With Resettlements Outside of PJM Timeline Under Supplier Tariff

April 11, 2017

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

Ohio Edison Company and Cleveland Electric Illuminating moved to dismiss a complaint filed by Direct Energy Business in which Direct Energy had sought a PUCO order finding that the FirstEnergy EDCs lacked authority to compel Direct Energy to resettle and refund a prior erroneous $5 million charge to another entity, and that Direct Energy's refusal to agree to the resettlement beyond PJM’s 60-day window cannot be considered a breach of the EDCs' supplier tariffs

As alleged by Direct Energy Business, "The Respondents [EDCs] made a substantial error that caused wholesale market data to be reported incorrectly to PJM Interconnection LLC. The error caused an unknown entity, whom Respondents refuse to identify, to incur over $5 million in wholesale market charges. Respondents claim to have recently reimbursed the unnamed entity for these charges, and are now turning to Complainant to reimburse Respondents."

Direct Energy said that the sought resettlement is outside of PJM’s 60-day window, and argued that the FirstEnergy Ohio utilities lack the ability to compel resettlement under the supplier tariffs.

Click here for our prior story for more details on the complaint

In an answer to the complaint, the FirstEnergy EDCs alleged that, through Direct Energy Business's refusal to agree to resettlement, "Complainant has breached its duty to cooperate under Section III.C. of the Supplier Tariff, which requires suppliers like Complainant to pay for their customers’ load."

"Complainant’s obligation is to cooperate in the provision of coordination services so that Complainant resettles with PJM for its actual retail load obligation," the FirstEnergy EDCs said

"The Companies [EDCs] provided incorrect data to PJM on behalf of Complainant that allowed Complainant to avoid paying approximately $5.6 million that Complainant should have paid for its customers’ load. As soon as the Companies identified the data reporting issue, the Companies promptly addressed and rectified it. Although there is no dispute that Complainant would have paid $5.6 million for its load obligations if the correct data had been provided, Complainant continues to obstruct the Companies’ efforts to correct the settlement with PJM. As a result, Complainant has breached its duty to cooperate under Section III.C. of the Supplier Tariff, which requires suppliers like Complainant to pay for their customers’ load. The Companies’ mistake affected some eleven suppliers, and most of the suppliers who received a windfall cooperated with the Companies to make the proper settlements with PJM," the FirstEnergy EDCs alleged

"The Companies have acted at all times in accordance with the terms of the Agreements and Supplier Tariff, as well as all rules, regulations and Orders as promulgated and issued by the PUCO, the laws existing in the State of Ohio, and accepted standards and practices in the electric industry," the FirstEnergy EDCs said

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