Universe of Customers Eligible for Pennsylvania Retail Market Jump-start Programs Expanded

In its binding poll conducted yesterday concerning the FirstEnergy electric distribution companies' default service plan, the Pennsylvania PUC agreed to expand the universe of customers eligible to participate in a series of programs at the EDCs meant to encourage customers to take competitive electric supply.

Notably, the PUC reversed an ALJ's recommended decision, as well as its own interim retail market workplan order, and agreed to allow small commercial customers to participate in the retail market enhancement programs, which include the retail opt-in program (formerly an auction), and the Standard Offer referral program.

Specifically, the PUC adopted the position of the Retail Energy Supply Association, whose position had been that small business customers with an annual peak load of less than 25 kW, or in the alternative, customers in the smallest commercial rate class, should be eligible to participate in both market enhancement programs.

Additionally, the PUC agreed that Customer Assistance Program (CAP) customers should be eligible to participate in the programs. An ALJ's recommended decision would have excluded CAP customer participation, while the prior intermediate workplan order had deferred ruling on CAP customer eligibility.

The PUC agreed with the position of the EDCs that CAP customers should be eligible for the retail market enhancement programs. The EDCs had noted that these customers are already permitted to shop under the EDCs' approved tariffs, and that (as earlier designed) the programs would assure that participating customers, including CAP customers, pay a price that is less than the Price to Compare. The EDCs also noted that their systems for enrolling retail opt-in program participants do not have the capability to identify and reject CAP customers.

The PUC also affirmed that shopping customers will be eligible for the retail market enhancement programs, affirming the ALJ's recommendation. The programs will only be marketed to default service customers, however.

Furthermore, with respect to timing, the PUC reversed the ALJ's recommended start-date of June 2014 for the Standard Offer referral program. The ALJ had recommended a one-year delay in the program to avoid confusion with the retail opt-in program, under which service will start June 1, 2013.

The PUC agreed with FirstEnergy Solutions that a delay was not necessary given that customer marketing and enrollment in the retail opt-in program will occur before the June 1, 2013 start of service under the program. Therefore, there will be very little overlap of the retail opt-in program with the Standard Offer referral program which shall begin in June 2013, and therefore little opportunity for customer confusion.

The PUC also found that the New/Moving Customer Referral Program, "can be implemented in a relatively short period of time with minimal effort on the part of an EDC." Accordingly, the PUC affirmed that the program shall not be dropped, as suggested by the EDCs and retail suppliers (due to implementation issues), and that, "the Companies should be required to begin this program as soon as possible, while anticipating refinement of the program once the RMI [retail markets investigation] working group is able to finalize the 'call center scripts' as described in the Intermediate Work Plan Final Order."

Separate from the retail market enhancements, but also potentially implicating service from a retail supplier, the PUC agreed that the Time of Use generation rate options to be offered under the default service plan were inappropriate, but disagreed with the ALJ that the programs should be deferred. Instead, the Commission will require the EDCs to submit a revised TOU proposal for Penn Power and West Penn within 60 days. Commissioner Pamela Witmer, "encourage[d] the Companies to meet with stakeholders, including, but not limited to statutory advocates and EGSs [electric generation suppliers] to seek their input prior to making the above referenced filing."

Related Coverage

Today: Pennsylvania PUC's Witmer Encourages Study of Bypassable Adders to Default Service Price

Today: Pennsylvania Directs Office of Competitive Markets Oversight to Study, Report On Retail Supplier Data Access Issues

Yesterday: Pennsylvania to Adopt More Market-Reflective Default Service at FirstEnergy EDCs, Versus ALJ Proposal

Yesterday: Pennsylvania Modifies Terms for Retail Opt-in Auction