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Utilities Propose To Implement Price Cap On CAP Customer Shopping By Limiting Retail Suppliers To "Percent Off PTC" Product

Propose Transition Process For Existing Contracts

October 22, 2018

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

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The FirstEnergy Pennsylvania electric distribution companies have filed a proposal to implement the prohibition on Pennsylvania Customer Assistance Program (PCAP, or CAP) customer shopping, except in instances in which a CAP customer enters into a contract with an electric generation supplier (EGS) for a rate that is at or below the utility’s Price to Compare and which does not contain an early termination fee.

EnergyChoiceMatters.com was first to report the PUC's adoption of the CAP "shopping program" at the FirstEnergy EDCs, under which CAP customers may only enter into a contract with an EGS for a rate that is at or below the utility’s PTC and which does not contain an early termination or cancellation fee. As previously reported, the PUC delegated to the Office of Competitive Market Oversight (OCMO) further discussion concerning mechanics and implementation of the price cap

The FirstEnergy EDCs' proposal comes in advance of a November 5 workshop on the issue

The FirstEnergy EDCs have proposed to implement the CAP shopping price cap by requiring that, "PCAP customers be permitted to shop with any electric generation supplier that offers a rate-ready percentage off product that is no more than the currently-effective price-to-compare ('PTC')."

"All attempted supplier enrollments of PCAP customers outside of these parameters would be automatically rejected by the Companies," the FirstEnergy EDCs said

The PUC's order did not require that the PCAP shopping program be limited to a "percent off PTC" product, only that the price not exceed the PTC.

The FirstEnergy EDCs also proposed the following transition for CAP customers currently served by EGSs, or those who become CAP customers during an EGS contract:

Transitioning Customers

a. CAP customers who are served under a fixed duration contract with an EGS as of June 1, 2019 (a "pre-existing fixed duration contract") may remain with their EGS until the expiration date of the fixed duration contract or the contract is terminated, whichever comes first.

b. Non-CAP customers served under a fixed duration contract who subsequently enroll in CAP (also considered to be served under a "pre-existing fixed duration contract") may remain with their EGS until the expiration date of the fixed duration contract or the contract is terminated, whichever comes first.

c. Upon expiration or termination of a pre-existing fixed duration contract, the EGS must either:

    (1) enroll the CAP customer under a contract compliant with the CAP shopping program product provisions noted above; or

    (2) return the CAP customer to default service.

d. For EGSs serving CAP customers under a month-to-month contract as of June 1, 2019, the EGS must either:

    (1) return the CAP customer to default service effective June 1, 2019; or

    (2) enroll the CAP customer under a contract compliant with the CAP shopping program product provisions noted above, with an effective date of June 1, 2019.

e. For EGSs serving non-CAP customers under a month-to-month contract who subsequently enroll in CAP, the EGS must either, within 120 days of the customer's CAP enrollment:

    (1) return the CAP customer to default service; or

    (2) enroll the CAP customer under a contract compliant with the CAP shopping program product provisions noted above

f. For EGSs serving CAP customers who are subsequently removed from CAP, the EGS must either:

    (1) honor the terms of the existing contract; or

    (2) return the customer to default service.

The FirstEnergy EDCs said that all programming to support a June 1, 2019 implementation date must be completed by the companies' SAP transport on April 19, 2019.

The FirstEnergy EDCs propose that all administrative and programming costs associated with the implementation of PCAP shopping rules be collected from residential customers via the companies' Price to Compare Default Service Riders.

The OCMO collaborative is to also address scripts for the FirstEnergy EDCs Standard Offer customer referral program (CRP). The FirstEnergy EDCs said that with respect to the CRP scripting discussion, the companies' main objective at the working group meeting will be to ensure that any proposed modifications to the scripting do not impact the CRP intake process in a manner that substantially increases call times or otherwise negatively impact their contact centers' other utility-related operations.

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