Energy Choice
                            

Matters

PPL: "Multiple" Retail Suppliers Intend To Participate In CAP Standard Offer Program (Will Be Only Mechanism For CAP Customer Shopping Starting June 1)

PPL: "Unequivocal" That CAP-SOP Order Provides That "All" Existing CAP Customer Contracts Remain In Place

May 16, 2017

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

Dismissing operational concerns raised by the Retail Energy Supply Association, PPL Electric Utilities (PPL) said in comments to the Pennsylvania PUC that "multiple" retail suppliers "intend" to participate in the Customer Assistance Program Standard Offer Program (CAP-SOP), which will be the only vehicle for CAP customer shopping at PPL starting June 1.

As first reported by EnergyChoiceMatters.com, the PUC ordered that, at PPL, Customer Assistance Program (CAP) customers may only shop through a CAP-specific Standard Offer Program (CAP-SOP), under which the EGS must serve the customer at a 7% discount off the Price To Compare at the time of enrollment, with such EGS price fixed for 12 months (see story here)

RESA has raised several operational concerns with the program, asking that the start date be delayed (see story here)

PPL in its comments filed with the PUC alleged that RESA is mischaracterizing the requirement for suppliers to "drop" customers to default service as a result of CAP-SOP:

"RESA relies on its belief that CAP shopping customers will be 'dropped' in support of its contention that the Commission must delay the implementation of the CAP-SOP and take further action. However, RESA's contention that the existing CAP shopping contracts will be terminated is patently false and a complete mischaracterization of the CAP-SOP."

PPL emphasized the PUC's order which stated:

(g) All CAP customer shopping fixed-term contracts in effect as of the effective date of the CAP-SOP will remain in place until the contract term expires and/or is terminated.

(h) Once the existing CAP customer shopping contract expires or is terminated, the CAP customer will have the option to enroll in the CAP-SOP or return to default service, but in any event will only be permitted to shop through the CAP-SOP.

[Note: Bold emphasis by PPL; Italic and underlined emphasis by EnergyChoiceMatters]

"Thus, contrary to RESA's contention otherwise, the DSP IV Order unequivocally provides that all existing CAP shopping contracts will remain in place and effective until the contract term expires and/or is terminated," PPL said in its comments [emphasis by EnergyChoiceMatters]

However, as noted in the language from the order quoted by PPL, this does not appear to be the case (insofar as the text of the order provides; there has been no official order from the PUC further clarifying the order). The order only permits "fixed-term" contracts to remain in place after CAP-SOP starts. Presumably, contracts without a fixed term (e.g. a month to month or rollover term) cannot continue beyond June 1, and CAP shopping customers without a "fixed-term" contract must be dropped to default service

While semantics of what constitutes a "contract" can be debated, the PUC clearly considers that there are "contracts" in the market other than contracts that are for a "fixed-term," as otherwise the modifier "fixed-term" would have been superfluous, and the PUC could have merely said that all existing contracts may continue, with no qualification.

And while subsection (h) makes reference to the disposition of CAP customers after a contract expires (without reference to fixed-term), the explicit authorization for an EGS to continue to serve CAP-SOP customers is contained only in subsection (g), which explicitly limits the relief to "fixed-term" contracts. Accordingly, we fail to see any conclusion other than a finding that customers on non-fixed-term contracts must no longer be served by an EGS, in which case they must either be "dropped" to default service by the EGS, or switched back to default service by the utility itself (based on RESA's comments, the latter scenario does not appear to be the case)

PPL said in its comments that, "Consistent with the requirements of the Commission-approved CAP-SOP, PPL Electric is not and will not require any suppliers currently serving CAP customers under existing shopping contracts to 'drop' their current PPL Electric CAP shopping customers as repeatedly and incorrectly suggested by RESA." [emphasis by EnergyChoiceMatters]

"PPL Electric has consistently communicated this to the suppliers that serve its service territory, and specifically addressed this issue on a conference call with suppliers on April 25, 2017. This specific issue was also addressed during the stakeholder collaborative held on April 7, 2017, which was attended by suppliers, as well as a representative of RESA," PPL said in its comments

As to RESA's operational concerns, PPL in its comments said, "To the extent that RESA had operational or implementation concerns with the CAP-SOP, it was incumbent on RESA to timely raise such issues on the record before the Commission. However, the record in this matter has long-since closed. As such, RESA cannot now collaterally attack the Commission's DSP IV Order approving the CAP-SOP by raising new, extra-record issues to support RESA's opposition to the CAP-SOP."

PPL in its comments reported that "multiple" suppliers have signed up for the CAP-SOP program and "intend" to serve CAP customers under the program

"In further support of its request, RESA's May 12, 2017 letter appears to suggest that suppliers will not participate in the CAP-SOP unless and until its newly raised 'operational' issues have been addressed. Although RESA is clearly opposed to the CAP-SOP and believes that it cannot be implemented, not all suppliers share RESA's concerns. Indeed, PPL Electric notes that multiple suppliers, including one of RESA's own members, have already signed up and intend to participate in the CAP-SOP once it becomes effective on June 1, 2017. Thus, despite RESA's assertion to the contrary, it appears that not all suppliers see RESA's extra-record operational issues as an impediment to implementing the CAP-SOP," PPL said in its comments

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Pit Crew Analyst - Pricing, Contracting & Service Guru -- DFW / Irving
• NEW! -- Sales & Marketing Manager -- Retail Supplier
• NEW! -- Director, Regulatory Compliance -- Retail Supplier -- Houston
• NEW! -- Sr. Energy Consultant
• NEW! -- Manager of Regulatory Affairs -- Retail Supplier
• NEW! -- Sales Support Specialist Energy Solutions -- Retail Supplier
• NEW! -- Paralegal, Regulatory Affairs -- Retail Supplier -- Houston
• NEW! -- EDI Transactions Manager -- Retail Supplier -- Houston
• NEW! -- Director of Channel Sales -- Retail Supplier
• NEW! -- Sales Manager -- Retail Supplier -- New York
• NEW! -- Sales Manager -- Retail Supplier -- MA / NJ
• NEW! -- Sales Agent -- Retail Supplier -- Multiple markets
• NEW! -- Customer Retention -- Retail Supplier -- Houston