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Update: Pa. PUC Issues Written Order Directing PPL To Meet With Retail Suppliers About CAP-SOP Operational Issues (Only Vehicle For Low-Income Shopping)

June 26, 2017

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

The Pennsylvania PUC has issued a written order directing 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

The PUC's adoption of such an order was first reported by EnergyChoiceMatters.com earlier this month. A written order has now been issued by the PUC implementing such direction

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

A CAP-SOP order issued in October 2016 provided that:

• Effective June 1, 2017, the CAP-SOP is the only vehicle that a CAP customer may use to shop and receive supply from an EGS.

• 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."

• 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.

• PPL Electric will revise its CAP recertification scripts/process so that all existing CAP shopping customers receiving generation supply on a month-to-month basis after June 1, 2017 will be required at the time of CAP recertification 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

RESA has raised various operational concerns concerning the program, including the requirement to drop customers to default service as contemplated by several of the provisions above.

In its new order, the PUC states, "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. See Opposition Letter at 1-2. These 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 place all of these processes into operation. 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 October 2017 Order does clarify some of these issues relating to month-to-month contracts, it is still not clear what processes will be needed to implement these directives," the PUC said

The PUC specifically noted that, with respect to customers on month to month service, its prior October 2016 order had provided, "PPL Electric will revise its CAP recertification scripts/process so that all existing CAP shopping customers receiving generation supply on a month-to-month basis after June 1, 2017 will be required at the time of CAP recertification 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."

"As PPL moves forward with the implementation of the CAP-SOP, we believe it would be prudent for the Company and the affected EGSs to meet with each other for the purpose of addressing and resolving any operational CAP-SOP issues and details so that the interested parties would be in a better position to coordinate the CAP-SOP implementation and compliance with our Regulations. Accordingly, within thirty days of the entry date of this Opinion and Order, we shall direct the Office of Competitive Market Oversight to facilitate meetings with PPL and the affected EGSs, including RESA, to examine and resolve any operational issues that are integral to the implementation of the CAP-SOP. Thereafter, within ninety days of the entry date of this Opinion and Order, we shall further direct the Office of Competitive Market Oversight to provide a status report of the discussions and the disposition of the implementation issues in this matter to the Commission," the PUC ordered

As previously reported, the PUC maintained the June 1, 2017 start date for CAP-SOP as part of its order

Docket P-2016-2526627

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