Pa. PUC Orders Met-Ed/Penelec Referral Program to Resume as Scheduled

In an order issued Monday, the Pennsylvania PUC ordered that the letter-based customer referral programs at Met-Ed and Penelec shall move forward, given the recent entry of several additional retail suppliers into the territories (P-2009-2093053).

Under the referral, or customer education, programs, Met-Ed and Penelec are required to send letters notifying residential and small commercial customers of available supplier offers for electric generation service. The letters notifying customers of supplier offers were to be sent at least twice during each calendar year beginning in 2011, but in April the PUC suspended the program, citing the lack of residential offers in the territories, and asking whether the funds for the program could be more effectively used once more suppliers are active (see 4/1).

In April, only BlueStar Energy Solutions, FirstEnergy Solutions and Palmco Power were offering residential service at either Met-Ed or Penelec (or both).

Since that time, as only noted in Matters, Constellation Energy (6/14), Reliant Energy (7/1), and NextEra Energy Services (7/21) have each entered the territories.

"Due to the increased number of EGSs providing service to residential customers and the healthy number of competitive market offerings for businesses in the Companies' service territories, we conclude that it is reasonable to move forward with the consumer education programs for both residential and small commercial customers, as provided in the Companies' default service plan settlement," the PUC said.

While there are now at least five active residential suppliers in each territory, only three in each territory currently offer a rate lower than the Price to Compare (based on postings on PA Power Switch).

Nevertheless, the PUC agreed with Dominion Retail, which had said that the timely implementation of the utilities' referral programs will likely draw additional suppliers into the utilities' service territories, since the referral programs provide suppliers with a platform to communicate to customers about choice.

The PUC therefore ordered the referral program to continue as scheduled.