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Pa. PUC Orders PPL To Meet With Retail Suppliers Regarding CAP-SOP Program Operational Issues (Only Vehicle For Low-Income Shopping)

PUC Accepts Withdrawal of PPL's Prior Proposal To Change Implementation Date

June 15, 2017

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

The Pennsylvania PUC accepted a motion from Vice Chair Andrew Place which directs PPL Electric Utilities to meet with retail electric suppliers concerning operational issues related to the new Customer Assistance Program Standard Offer Program (CAP-SOP), which is the only vehicle for CAP customer shopping at PPL effective June 1

As first reported by EnergyChoiceMatters.com, the PUC had previously 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

PPL earlier this year asked for a delay in implementation until September 1, 2017, citing, at that time, the anticipated time to complete needed IT work. PPL later asked to withdraw its request for an amended implementation date, stating that it was able to complete the needed work by June 1.

In adopting Place's motion, the PUC accepted PPL's motion to withdraw its earlier request for an amended implementation date

The Retail Energy Supply Association has raised various implementation issues regarding CAP-SOP (such as the identification of existing shopping CAP customers), and has noted uncertainty regarding the treatment of CAP customers currently on EGS month to month contracts (see discussion here)

In his motion, Place notes, "RESA raises certain operational issues that need to be addressed as PPL's CAP-SOP is implemented over the next several months and years."

"It is important to note that RESA has filed a Petition for Review with the Commonwealth Court of the Commission's October 2016 and January 2017 Orders with respect to our approval of the CAP-SOP. In that appeal RESA did not seek a stay of the implementation of the CAP-SOP," Place noted

"RESA appropriately identifies several operational issues that should be addressed in the implementation of the CAP-SOP to avoid damage to Pennsylvania's competitive retail electricity market. RESA Answer at 1-2. The issues include lack of information on which EGS customers are receiving CAP benefits; how EGSs will honor existing customer contracts, particularly any cancellation provisions; how to maintain compliance with the Commission's regulations, particularly contract renewal provisions; and how to operationalize all these processes. Though PPL asserts that customers on month to month contracts need not be returned to Default Service, RESA has asserted that there is uncertainty on this issue. While our Order does clarify some of these issues as it relates to month to month contracts, it is still not clear what processes will be needed to implement these directives," Place said

"As PPL moves forward with the implementation of the CAP-SOP, I believe that the Company and the affected EGSs should meet to address and resolve any operational issues and details to enable all interested parties to coordinate the implementation and comply with the Commission's regulations," Place said

The PUC adopted Place's motion that:

1. The Petition of PPL Electric Utilities Corporation for Leave to Withdraw its Petition to Amend the Implementation Date of the Customer Assistance Program Standard Offer Referral Program is granted.

2. Within 30 days of the entry date of this Order, the Office of Competitive Market Oversight will facilitate meetings with PPL Electric Utilities Corporation and the affected Electric Generation Suppliers, including the Retail Energy Supply Association, to examine and resolve any operational issues that are integral to the implementation of PPL Electric Utilities Corporation Customer Assistance Program Standard Offer Referral Program.

3. The Office of Competitive Market Oversight provide a status report of the discussions and the disposition of the implementation issues in this matter to the Commission within 90 days of the entry date of this Order.

4. The Office of Special Assistants draft an Opinion and Order consistent with this Motion

An order implementing Place's motion has not yet been published

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