Cawley Asks if Default Order of Electric Offers on PA Power Switch Should Change

During a retail markets hearing yesterday, Pennsylvania PUC Commissioner James Cawley asked stakeholders whether the default order of retail electric offers on PA Power Switch should be modified.

Currently, offers are listed in alphabetical order, with the Price to Compare appearing separately at the top.

Cawley asked whether the competitive offer list should be changed to list prices in ascending order, with the lowest prices on top.

Chris Kallaher, Senior Director of Government & Regulatory Affairs for Direct Energy, cautioned the PUC against any default listing based on price, as it would reinforce the erroneous notion that retail choice should remain a price driven market.

Kallaher noted that such a focus would mask the benefit of value-added products, such as bundled services, or unique Time-of-Use products, such as Direct Energy's "free Saturdays" product, which do not have a single rate for all periods.

Kallaher suggested that the default view could randomly list competitive offers. Such a process is in use in Illinois.

Regulator-sponsored rate boards in Connecticut and Texas list the lowest prices first, however each provides a preference for fixed rates (The default Texas view only includes fixed rates, while in Connecticut, variable/promotional rates are listed at the bottom regardless of price). Indeed, Texas, the state Pennsylvania wishes to emulate with respect to retail choice, originally listed Power to Choose offers randomly, but, citing customer confusion, opted for a ascending order price list, then further refining the list to default to fixed rates only.

New York's Power to Choose uses alphabetical order for the default view.