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PUC Denies Price Cap Sought For Service To Low-Income Customers (Load Currently Served By Retail Suppliers), But Also Declines Retail Supplier's Sought Language On Pricing
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The PUC of Ohio adopted final language for rule revisions governing the procurement of electricity supply for Percentage of Income Payment Plan (PIPP) customers, implementing Amended Substitute House Bill 96, with PUCO addressing various stakeholders' proposals regarding pricing in the PIPP procurements
PIPP customers may not shop in Ohio.
PIPP load is 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
Statute provides that a winning PIPP bid shall meet the following requirements (with PUCO now adopting this specific language in rule):
• "Reduce the cost of the PIPP plus program relative to the SSO."
• "Result in the best value for persons paying the PIPP rider."
As previously reported by EnergyChoiceMatters.com, the Ohio Consumers' Counsel has argued that this statutory language prohibits the PIPP price from exceeding the regular SSO price, though PUCO has previously rejected this interpretation of the statute
OCC again in the rulemaking sought to require that the PIPP rate not exceed the SSO rate, but PUCO rejected OCC's proposal
Citing the reasoning set forth in its prior orders on PIPP pricing, PUCO said that a PIPP price cap, "would not have the intended effect claimed by OCC."
However, PUCO also declined to adopt language proposed by Constellation concerning the rule's provision that the PIPP bid shall, "reduce the cost of the PIPP plus program relative to the SSO"
Constellation had expressed concern that such language suggests that the PIPP price may not exceed the SSO, essentially creating a price cap
Constellation had proposed adding language stating that the PIPP auction should reduce the price for PIPP customers relative to the SSO, "except as otherwise provided".
PUCO called Constellation's language "too vague" and said that the rule language quoted above more closely tracks the statute.
The final rule 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
The final rule maintains the current PIPP procurement process, in which an initial RFP is 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 is to seek supplies from retail suppliers to serve PIPP load at any price (this second RFP is also current practice)
The final rule is also explicit that the PIPP RFP should seek supplies for 12 months (this has been the term length used to date). Excluding certain bypassable riders, SSO rates in Ohio are established for 12-month periods
While PUCO has approved revisions to the final rule language, the revised rules, under the customary process, remain subject to review by the Joint Committee on Agency Rule Review.
Case 25-0823-EL-ORD, Case 25-823-EL-ORD
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May 14, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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