Flash: PUC Issues Tentative Order to Accelerate Customer Switching Timeline

The Pennsylvania PUC this morning voted to issue a Tentative Order, for public comment, containing proposed interim guidelines to accelerate the switching process for electric customers.

The Commission voted 5-0 to weigh comments on the interim guidelines and sample customer notification letter. The Commission anticipates directing a rulemaking in the future to revise Commission regulations concerning switching.

A copy of the Tentative Order was not immediately available, but was described in a PUC news release.

Additionally, a statement from Commissioner James Cawley indicates that as part of the new guidelines, suppliers will be required to provide to customers, on the disclosure statement, an estimated date for the start of EGS supply service. Cawley asked a series of questions concerning this requirement and whether suppliers will have access to a customer's meter read schedule to provide such an estimate.

Currently, switching to an electric generation supplier (EGS) or even switching between competitive suppliers can take between 16 days and 45 days due to the various regulations and company procedures that are in place. The procedures are in place to protect customers from slamming or unwanted switching. However, the delays in switching are perceived by consumers as a lost savings opportunity and can lead to customer frustration, the PUC said.

The goal of the proposed interim guidelines is to shorten the time frame needed for a customer to switch EGSs while providing necessary customer protections. The changes include:

• The elimination of the 10-day waiting period that is initiated by the EDC sending a confirmation letter of a change in EGS to the customer; and

• The substitution of an account transfer letter for the confirmation letter sent by the EDC to the customer.

The Commission also is seeking comments on the feasibility of applying the proposed interim guidelines to natural gas distribution companies and natural gas suppliers.

The docket is M-2011-2270442