Pa. PUC Adopts Final Recommendations on Interim Default Service Plans with Eye Toward Retail Markets Investigation

The Pennsylvania PUC yesterday voted to issue final recommendations to electric distribution companies (EDCs) concerning the structure of their next default service plan filings, such that the filings, to the extent possible, do not preclude any market design changes that the PUC may ultimately adopt as it investigates the structure of the state's retail electric market.

A written order was not immediately published.

The PUC said in a news release that the Commission voted 5-0 to provide final recommendations that, "are intended to serve as guidance to the EDCs in developing the format and structure of their upcoming default service plans." The recommendations are part of the PUC's ongoing investigation of Pennsylvania's retail electricity market and technical conferences that are being held to address intermediate and long-term issues pertaining to the competitive market.

"The final recommendations are intended to provide EDCs with the flexibility to craft default service plan filings to address their unique operations while also supporting the PUC's efforts to enhance the retail electric competitive market," the PUC said.

These recommendations are designed to:

• Ensure that the upcoming default service plans do not hinder the ability of the Commission to implement changes that will be addressed within the investigation;

• Advise EDCs and other parties that they will be expected to amend proposed default service plans when possible to incorporate changes that may arise out of the PUC's investigation of Pennsylvania's retail electricity market; and

• Provide guidance on default service plan components that the Commission believes can improve the competitive marketplace.

The recommendations address default service plan time periods; energy contract durations; retail opt-in auctions; referral programs; time-of-use rates; default service rate adjustment structure (residential and small commercial); and hourly-priced default service (medium commercial and industrial).

The docket is I-2011-2237952.