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People's Counsel Seeks Consideration Of Retail Supplier Rate Caps, End Of POR, Prohibition On Low-Income Shopping
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The Office of the People's
Counsel for the District of Columbia proposed, among other things, a cap on retail supplier rates, as OPC offered comments in a District of Columbia PSC proceeding on the future of the POR programs
OPC recommended that the PSC should "consider" implementing price ceilings for electricity supply based on the incumbent utility’s SOS rates, which OPC said are competitively bid and which OPC alleged are, "consistently lower than TPS [third party supplier] offerings."
"TPS participation in the market should be conditioned on their ability to offer rates below this ceiling," OPC said
OPC also recommended a price cap for retail natural gas service
"While natural gas pricing is more volatile, the Commission could use WGL’s weighted average commodity price as a benchmark for setting a ceiling, provided it demonstrably benefits consumers," OPC said
OPC's pricing recommendations were not limited to rates charged to customers served under POR (to the extent the POR program continues).
OPC's pricing recommendations were also not explicitly limited to residential service.
OPC also recommended that the PSC eliminate the POR programs for residential customers
OPC recommended that the Commission convene a stakeholder working group to explore alternative billing models, similar to efforts in Maryland, following a repeal of POR.
"Additionally, TPS companies would be required to assume full responsibility for managing bad debt, rather than shifting that risk to utilities and ratepayers. This change would incentivize improved marketing, enrollment, and customer service practices, fostering a more equitable and accountable energy market," OPC said
OPC also proposed that the PSC explore limiting retail supplier "access" to low-income consumers, as has been done in certain northeastern states
OPC alleged, "The POR Programs have not fulfilled its original goal of fostering a competitive retail energy market that delivers lower prices and expanded choices for consumers. Instead, it has enabled TPS companies to disproportionately target low-income households, diverting limited energy assistance funds and shifting financial risk to ratepayers."
OPC alleged, "The most notable trend since the POR Programs’ launch has been the sharp rise in consumer complaints related to TPS companies. This increase in complaints—many of which involve misleading marketing, excessive rates, and exploitative practices—underscores the inequity of the current market structure. Rather than fostering meaningful competition that benefits consumers, the POR Programs have enabled a proliferation of suppliers whose practices often harm the very ratepayers the programs were intended to serve."
OPC alleged, "The implementation of the POR Programs have not produced meaningful benefits for residential consumers in the District. In fact, residential customers routinely pay higher rates under TPS contracts than they would under the incumbent utility’s SOS. For low-income households, these variable-rate contracts can be two to three times higher than SOS rates, resulting in significant financial hardship."
OPC alleged, "Moreover, consumers have been subjected to misleading marketing practices that often involve introductory fixed rates followed by automatic renewals into higher, variable-rate products. These tactics have led to substantial financial losses and the diversion of public energy assistance funds—such as those provided through the RAD program—to TPS companies. Rather than expanding choice and lowering costs, the POR Programs have facilitated exploitative practices that disproportionately harm the District’s most economically vulnerable residents."
In terms of specific changes to the existing POR programs, OPC recommends that the Commission establish "clear and enforceable limits" on the magnitude of under-collections and over-collections associated with the POR programs
"To uphold the integrity of the POR Programs and protect ratepayers, the Commission should require utilities to transparently track and report all under- and over-collections, and ensure that any recovery mechanisms do not shift costs to the broader rate base," OPC said
OPC reported that, since March 2022, OPC has received 11,419 consumer complaints, with 2,234 -- which OPC noted its nearly one in five -- related to TPS companies
PEPPOR-2025-01, WGPOR-2025-01
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September 16, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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