D.C. PSC to Examine Application of Pepco Minimum Stay Rule

The District of Columbia PSC will hear (in Formal Case 1097) a complaint brought by Liberty Power concerning the application of the 12-month minimum stay to non-residential customers returning to Pepco Standard Offer Service.

As only reported by Matters, Liberty is seeking an order from the PSC directing Pepco to enroll a customer with Liberty which has Pepco refused to do, citing the minimum stay.

The customer's account had been served by another competitive supplier, whose contract was expiring. That supplier submitted a drop request to cease serving the customer upon expiration of the contract.

Pepco says that it informed the customer that it would begin receiving Pepco SOS for 12 months unless the customer switched to another supplier by June 12, 2011. Liberty averred that the customer did not receive such notification.

On June 15, 2011, Liberty requested enrollment of the customer's two accounts beginning in July 2011, but the request was denied by Pepco, as Pepco said that the 12-month minimum stay had been triggered.

As previously reported, the tariff clearly does not contemplate situations where an incumbent supplier drops an account and the newly selected supplier, due to the enrollment deadline, fails to enroll the customer coincident to that drop resulting in an unintended and undesired return to SOS, and the issue appears to be one of first impression.

Liberty argued that Pepco's tariff, in cases where the enrollment notice misses the first available meter read, requires Pepco to complete the switch to the new competitive provider on the second regularly scheduled meter read date after the date of the notice, regardless of the status of the account. However, this section of the tariff addresses switches from one competitive supplier to another, and its applicability to a customer dropped to SOS, due to a timing issue, has not previously been addressed.

Liberty also said that returning a customer to SOS against their stated desire violates administrative regulations which state that, "unless the customer consents, a market participant may not change a customer's electricity supplier."

Pepco says that per the tariff and rules, the minimum stay can only be waived in cases of supplier default (or if the customer elects market-priced service when returning to Pepco). Pepco said that granting Liberty's relief would eviscerate the minimum stay, which is meant to prevent gaming.