Energy Choice
                            

Matters

OCA: 120-Day Window For Retail Suppliers To Drop CAP Customers To Default Service Is Too Long

December 11, 2017

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

In comments on a tentative order from the Pennsylvania PUC which sought to clarify when retail electric suppliers must drop Customer Assistance Program (CAP) customers at PPL Electric to default service, now that CAP customers may only shop through a CAP-specific standard offer program, the Pennsylvania Office of Consumer Advocate said that the 120-day period provided to suppliers to drop month-to-month customers who have CAP status is too long, and sought a shorter window.

As previously reported, the tentative order proposes that, for an existing fixed-duration contract, the Commission proposes that the EGS must drop the existing customer when the contract expires. For a month-to-month contract, the Commission proposes that the EGS must drop the customer within 120 days after the customer is enrolled in CAP

See prior story for more details

The OCA said that month to month customers do not receive renewal and expiration notices as fixed price customers do, and, as such, said that 120 days is not needed to accommodate any obligations with regards to EGSs regarding a drop of a CAP customer to default service. OCA therefore sought a shorter drop window

The OCA noted there are two groups of month to month customers. The first group of customers includes shopping customers who have defaulted to a month-to-month contract from a fixed price contract. The OCA noted that, for these customers, there are no further renewal notices after the rollover from fixed to month to month, and the only notice is a 30-day price change notice.

As such, the OCA said in comments on the proposal that, "The OCA submits that the proposed 120 day waiting period is more than the time required under the Commission’s regulations for customers who are on a month-to-month contract to take an action. Customers on month-to-month contracts receive thirty days notice of changes in price and can act any time within that thirty days to change service. The Commission stated that the purpose of the additional time is to allow EGSs to comply with the Commission’s notice provisions at Section 54.10 and 'is too abrupt' from the customer’s perspective. Tentative Order at 9. The OCA submits, however, that extending the transfer period for month-to-month customers to 120 days is too long a period of time and is not abrupt under the switching time frames provided by the regulations. Action should be taken in thirty days as that time frame more closely reflects the time frames provided in the regulations."

OCA said that the second group of customers on month-to-month contracts includes customers being served under variable rates.

OCA said that these customers are not subject to the 120-day notice requirements of 54.10(2) as they are not on fixed term contracts. 52 Pa. Code § 54.10(2). EGSs are not required to provide advance price notices to customers who are on variable rate contracts and the decision to end the contract rests with the customer.

"Since there are no notice provisions for variable rate customers in the Commission’s regulations, the OCA submits that the proposed 120 day waiting period to be returned to default service or select CAP-SOP is not necessary. CAP customers on variable rate contracts can, and should, be transitioned to default service or to the CAP-SOP pursuant to the Commission’s October 16 Order as soon as the customer terminates the variable rate agreement," OCA said

Regarding fixed contracts, the OCA said, "The Tentative Order proposed to allow EGS customers that are on fixed-duration contracts that are subsequently enrolled in CAP to continue with EGS service until their EGS contract expires or the contract is terminated by the customer. Tentative Order at 8-9. The OCA submits that allowing a fixed duration contract of a customer seeking to enroll in CAP to continue until expiration could negatively impact the customer and costs paid by non-CAP customers. Contracts can have a significant duration with some suppliers offering 24 month and 36 month duration contracts. The purpose of the CAP-SOP is to mitigate the costs of unrestricted shopping on CAP customers and other ratepayers. If new CAP participants were permitted to enroll in the CAP program with an existing contract of significant duration, the goals of the CAP-SOP will not be fully realized. At this point, the OCA submits that the customer seeking to enroll in CAP should be required to end the contract to enter the CAP. The customer should be informed of the possibility of cancellation fees and provided assistance in evaluating that possibility."

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Analyst Billing and Transaction Services, Retail Operations -- Retail Provider -- Houston
• NEW! -- Commercial Energy Advisor -- Dallas
• NEW! -- Business Development Manager -- Retail Supplier -- Houston / Dallas
• NEW! -- Director, Retail Energy Supply and Pricing -- Retail Supplier -- Houston
• NEW! -- Operations Analyst -- Retail Supplier
• NEW! -- Sales & Marketing Manager -- Retail Supplier
• NEW! -- Retail Energy Account Manager -- DFW
• NEW! -- Director of Affiliate Business Development -- DFW
• NEW! -- Commercial Lead Generation Specialist -- Retail Provider
• NEW! -- General Counsel/ Sr Attorney, Retail Electricity and Gas -- Retail Supplier -- Houston
• NEW! -- Operations Manager/Director -- Retail Supplier -- Houston
• NEW! -- Analyst/Senior Analyst, Energy Management and Marketing -- Retail Supplier -- Houston
• NEW! -- Pricing and Structure Analyst -- Retail Supplier
• NEW! -- Retail Sales Specialist, Telemarketing /D2D/Mass Markets -- Retail Supplier -- Houston