Pennsylvania PUC Proposes to Delay Customer Education Mailings Concerning Electric Choice

The Pennsylvania PUC proposed in a secretarial letter delaying two mailings from the electric distribution companies intended to educate customers about electric choice.

An "important component" of the PUC's final intermediate retail markets workplan was three coordinated educational mailings to residential and small business electric consumers.

In February 2012, the electric distribution companies mailed to customers a PUC-endorsed postcard encouraging consumers to shop for a competitive supplier and highlighting the Commission's website for electric shopping, PAPowerSwitch.com.

The PUC's final intermediate workplan order directed the mailing of a PAPowerSwitch.com tri-fold flyer in May 2012. This flyer has been developed and places a strong emphasis on PAPowerSwitch.com and provides consumers with a detailed walk-through of the steps involved when shopping for a competitive electric generation supplier. It also highlights the potential savings that can be achieved by consumers when shopping for generation supply. Both the postcard noted above and the tri-fold flyer have been posted on PAPowerSwitch.com so that consumers may reference them when they visit the website.

The final intermediate workplan further directed a third mailing in October 2012, consisting of a letter from the EDCs encouraging consumers to shop, directing consumers to PAPowerSwitch.com and reinforcing the notion that all consumers, regardless of who supplies their electricity, will continue to receive safe and reliable distribution service from their EDCs. Attached to this letter will be "frequently-asked questions" document. Language has been drafted for this mailing.

In the Secretarial Letter, the Commission proposes to delay the mailing of the PAPowerSwitch.com tri-fold flyer until November 2012 and to delay the mailing of the EDC letter and "frequently-asked questions" document until 2013.

"Despite the apparent effectiveness of the postcard in driving consumers to www.PAPowerSwitch.com and in raising awareness about shopping opportunities, the Commission proposes to delay the mailing of the tri-fold flyer and the EDC letter by approximately six months each," the PUC said.

"The primary reason for proposing these delays is feedback the Commission has received from consumers about the high volume of mail they receive from a variety of sources related to electric shopping. We are concerned about overwhelming consumers and giving them a negative impression of electric choice – the exact opposite of what is intended. Also, while the mailings are viewed as a cost-effective way of educating consumers, the Commission has a responsibility to ensure that ratepayer funds are used as effectively as possible," the PUC said.

"Although proposing to delay these mailings, the Commission remains steadfast in its commitment to consumer education. We firmly believe that the mailings will be more effective in promoting competition if they are spaced out over a longer period of time," the PUC said.

The PUC is accepting comments on the proposed change in schedule through May 29, 2012, and will issue a final order after reviewing such comments.

The PUC reported that after the first mailing, which was the PA Power Switch postcard, the Commission's call center received significant inquiries from consumers following those mailings, including many requests for shopping information. Additionally, the number of visitors to PAPowerSwitch.com doubled during the month following the mailings.