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PUC Issues Proposed Rules On Supply Auctions For Assistance Customers, With Bidders Limited To Retail Suppliers
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The PUC of Ohio has issued proposed rules governing the procurement of electricity supply for Percentage of Income Payment Plan (PIPP) customers, implementing Amended Substitute House Bill 96
PIPP customers may not shop in Ohio.
Under prior statute, PIPP load is currently carved out of the SSO auction, and a separate PIPP RFP is held. While the PIPP RFP is a wholesale auction, the PIPP auction limits bidders to bidders which are certified as a retail supplier in Ohio
HB 96 did not substantively change these requirements
Notably, HB 96 maintains a statutory provision that a winning bid in a PIPP auction shall meet both of these requirements:
• "Reduce the cost of the percentage of income payment plan program relative to the otherwise applicable standard service offer[.]"
• "Result in the best value for persons paying the percentage of income payment plan rider"
As previously reported, the Ohio Consumers' Counsel has opposed certain PIPP auction results because the PIPP rate exceeded the SSO rate, which OCC argues conflicts with the statutory provision that the PIPP auction shall reduce costs for PIPP customers
PUCO's proposed rule reflects current practice for the PIPP auctions
As required currently, the draft maintains that only entities certified under section 4928.08 of the Revised Code, governing certification of competitive retail electric service (CRES) providers, may bid in the PIPP RFP
As done currently, the draft provides that an initial RFP would be conducted for retail suppliers to serve PIPP load, for a defined term, at a price lower than the SSO. If no qualifying bids are received, a second RFP would seek supplies from retail suppliers to serve PIPP load at any price (this second RFP is also current practice)
The draft rules do provide that, "If no CRES provider participates in either RFP auction, the electric distribution utility may implement contingency measures to procure supply for the PIPP plus program load."
The draft is also explicit that the PIPP RFP should seek supplies for 12 months (this has been the term used to date. Excluding certain bypassable riders, SSO rates in Ohio are established for 12-month periods)
Mirroring statutory language, PUCO's draft rule provides that a winning PIPP bid shall meet the following requirements:
• "Reduce the cost of the PIPP plus program relative to the SSO."
• "Result in the best value for persons paying the PIPP rider."
Although, as noted, PUCO's draft does not substantively depart from the new statutory language or current practice, the rulemaking may serve as a forum to address PIPP auction issues and alternative interpretations of the statutory mandates, including the requirement that the PIPP auctions shall "reduce the cost" of PIPP service
Case 25-0823-EL-ORD, Case 25-823-EL-ORD
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December 4, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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