Ohio Weighing Customer Tool to Compare Different Electric Pricing Options, Seeks Comment on Dynamic Price Options

The Public Utilities Commission of Ohio is seeking comments on whether electric distribution utilities (EDUs) and/or competitive retail electric service (CRES) providers should offer pricing options for all consumers with advanced or interval meters that reflect the time-varying prices in wholesale electricity markets and additional dynamic pricing options such as pre-paid, indexed, and other variable rates (Case 12-150-EL-COI).

The Commission seeks to determine how information regarding such options might best be made available to these consumers. The Commission anticipates initiating a series of workshops on time-differentiated and dynamic pricing.

Furthermore, the Commission is also seeking comments on the development of a, "standardized approach to help consumers compare different types of retail pricing options for competitive services."

"Existing 'price-to-compare' information may not permit consumers to readily compare fixed prices with time-differentiated or dynamic retail pricing. Among the options to be considered, the Commission is seeking comments on the development of an on-line bill-to-compare calculator that could help consumers compare the bill impacts of alternative retail service offerings and how best to inform consumers of the availability of this capability," PUCO said.

"In taking these comments, the Commission may seek to evaluate and potentially expand the range of choices available to consumers and encourage more effective retail competition. This would include the development of innovative service offerings by CRES providers. By encouraging the development of time-differentiated and dynamic pricing options, the Commission is seeking to provide consumers with additional tools to manage their electricity bills, improve utility asset utilization, and enhance the reliability and resilience of the power system," PUCO added.

Specific questions include

• Should EDUs offer consumers with advanced or interval meters time-differentiated or dynamic retail rates to ensure that such options are available to such consumers? In addition to or in conjunction with Commission-approved time of use programs, should such choices include dynamic pricing options that reflect time varying PJM Interconnection, LLC (PJM) market prices?

• Should EDUs offer consumers with advanced or interval meters two-part dynamic pricing, such that the offer provides a dynamic price signal and a hedging or insurance component that addresses consumer risk aversion?

• What barriers, if any, are there to CRES providers offering dynamic pricing to consumers with advanced or interval meters? What steps, if any, should the Commission consider to encourage or to remove barriers to CRES providers offering packages that include dynamic pricing?

• Apart from a contemplated online bill comparison tool, are there alternative approaches which the Commission should consider that could provide customers comparable or superior capabilities for comparing different forms of pricing and different competitive retail service offerings?