PUC Approves Time Of Use Generation Rate Option For Non-Shopping Customers Served By Default Provider

January 27, 2021

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Reporting by Paul Ring • ring@energychoicematters.com

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The Public Utilities Commission of Ohio approved the application of the FirstEnergy Ohio utilities to revise the Generation Service Rider (Rider GEN) to add a time-varying rate offering for non-shopping customers.

As directed in prior PUCO orders in Case Nos. 16-481-EL-UNC and 17-2436-EL-UNC, et al., the FirstEnergy Ohio EDCs applied to change the Generation Service Rider (Rider GEN) in order to establish a time-varying rate offering for non-shopping residential customers with an advanced meter installed by the companies, and to expand the eligibility of the existing time-varying rate offering for non-shopping non-residential customers to include those with an advanced meter installed by the companies (currently limited to customers with qualifying time-of-day metering).

Under PUCO's prior orders, once there are either (a) at least three retail suppliers offering products utilizing AMI data or (b) at least three different types of time-varying products utilizing AMI data, then the FirstEnergy utilities, with Commission approval, will withdraw their SSO time-of-use rate offering.

Under the new residential Time of Day option for non-shopping customers, the customer will pay a three-part energy charge (mid-day peak, shoulder peak, and off-peak) which varies by season, in addition to a fixed capacity charge that is the same as for customers under the standard Rider GEN SSO service (the total bypassable SSO rate will also include additional bypassable riders which are not part of Rider GEN, such as Rider AER, etc).

In approving the utility-offered TOU rate, PUCO reiterated its prior intent that the competitive market, and not the EDC, serve as the source of dynamic pricing options for customers

"In fact, the Commission, when approving the Stipulation, made it clear that the Companies’ offering would be a temporary offering until such time that a sufficient competitive market offering comparable rates is established, which was defined in the Grid Modernization Case as a market having either (a) at least three suppliers offering products utilizing AMI data or (b) at least three different types of time-varying products utilizing AMI data. The Commission will continue to monitor the progress of FirstEnergy’s TVR [time-varying rate] offerings and the comparable offerings from the competitive market to ensure the full benefits contemplated by such offerings can be realized," PUCO said

"Furthermore, we note that nothing in the Stipulation approved in the Grid Modernization Case precludes members of the Collaborative Group, or the Commission itself, from initiating the process for the Commission to evaluate whether the requisite competitive market has been established. While the process may be initiated in this way, the Commission will ultimately determine whether the Companies’ TVR offering should be withdrawn," PUCO said

PUCO denied the OCC's request that bill guarantees be provided

The Commission directed the FirstEnergy EDCs to work with Staff and the Collaborative Group, which includes OCC, to develop and review information and marketing materials to be provided to customers, as well as assess what resources should be available to address customer inquiries and complaints regarding such offerings.

The customer education and marketing plan must be approved by Staff prior to the implementation of the TVR offering.

As contained in the EDCs' original filings, the proposed Rider GEN Time Of Day Option Residential energy charges under the filing are as follows, with rates the same for all three FirstEnergy Ohio EDCs:

FirstEnergy Ohio Utilities

RS Energy Charges  (¢/kWh)
Rider GEN Time Of Day Option - Residential

Summer
Midday Peak      7.9156¢
Shoulder Peak    5.1937¢
Off-Peak         3.9578¢

Winter
Midday Peak      6.4245¢
Shoulder Peak    4.7260¢
Off-Peak         3.2123¢

Midday-peak time shall be 2 p.m. to 6 p.m. EPT, Monday through Friday, excluding holidays. Shoulder-peak time shall be 6 a.m. to 2 p.m. and 6 p.m. to 8 p.m. EPT, Monday through Friday, excluding holidays. Holidays are defined as New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. Off-Peak shall be all other hours.

Case 20-50-EL-ATA

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