Pennsylvania Modifies Terms for Retail Opt-in Auction

The Pennsylvania PUC adopted a motion from Commissioner Pamela Witmer concerning the structure of the retail opt-in auction at the FirstEnergy electric distribution companies.

Witmer's motion can be found here.

Notably, the adopted motion:

- Modifies the mechanism from a retail opt-in "auction" to a retail opt-in "program" (discussed further below)

- Sets the opt-in program product as a 5% discount to the Price to Compare at the time of enrollment, for a period of four months, followed by an eight-month fixed price set by the supplier

- Includes a $50 bonus payment with enrollment in the auction

- Requires suppliers to submit terms for the 8-month product for PUC review

- Does not require an auction prior to customer enrollment

What the modified program will look like is not exactly clear. Witmer's motion contemplates that within 60 days, the EDCs and retail suppliers shall update their proposals for customer notification, opt-in enrollment, and customer assignment that coordinates with the revised retail opt-in program design.

Witmer's motion also states that under the changes, there is no longer a need for a descending clock auction in order to solicit retail supplier participation in the retail opt-in (ROI) program. "[B]ecause the ROI Product is essentially a 'set' amount, there is no reason that an alternative mechanism to determine EGS participation cannot be used," Witmer said.

Though as noted above the PUC will review the terms of the post-discount 8-month product, it is unclear if pricing after the initial 4-month discount will be uniform.