PUCO Approves New Supplier Tariff for FirstEnergy EDCs

The Public Utilities Commission of Ohio has approved updated supplier tariffs at the FirstEnergy utilities, including memorializing the companies' withdrawal of any change in the switching fee.

Originally, Ohio Edison, Toledo Edison, and Cleveland Electric Illuminating filed revised tariffs in September 2009 to eliminate the current waiver of the otherwise applicable $5 switching fee, which is not charged for the customer's initial switch from bundled service to competitive supply (9/11/09).

In March 2011, the utilities withdrew this request, and the switching fee will not be charged for the customer's initial switch to competitive supply, and also will not be charged to any accounts associated with governmental aggregation.

The approved tariffs also offer retail suppliers the option of bill ready utility consolidated billing in addition to the rate ready option.

Other changes in the revised supplier tariffs formalize the current credit practices used for supplier registration, including making the $250,000 initial credit amount explicit in the tariff. The applicable FirstEnergy operating company, "shall adjust the [credit] amount required commensurate with the financial risks placed on the Company by an EGS [electric generation supplier], including required recognition of an EGS's performance."

The option to use a surety bond for credit has been removed from the tariff. The revised tariff also includes an explicit limit on unsecured credit, which a supplier may receive by meeting certain credit ratings criteria, equal to 5% of a supplier's tangible net worth.

The updated tariff also requires additional information to be included in customer lists, including:

- PLC value (capacity peak obligation)

- Effective date of PLC value

- NSPL value (transmission peak obligation)

- Effective date of NSPL value

The revised tariff makes explicit the requirement that requested interval data provided to a supplier shall contain 12 months of data.

The new tariff language states that, "[i]f a Certified Supplier wishes to obtain from the Company confidential Customer-specific information about a Customer with whom it is discussing the possibility of providing Competitive Retail Electric Service, the Company will only provide such information after receiving written Customer authorization from the requesting Certified Supplier."

The tariff also includes clearer delineation of Transmission and Distribution loss factors.