Pennsylvania PUC Adopts Semi-Annual Price to Compare at Duquesne Light

The Pennsylvania PUC yesterday approved a default service plan at Duquesne Light for the period June 1, 2013, through May 31, 2015.

An order was not immediately available.

According to a PUC press release, the Price to Compare under the plan will only vary semi-annually. It was unclear if this would be every six months, or a more seasonal split (e.g. 4 month summer/ 8 month winter price), though likely the former

While that does depart from an ALJ's recommended decision, which as first reported by Matters would have adopted a 12-month fixed Price to Compare, the semi-annual PTC still falls short of the policy the PUC has been promoting as the preferred "end-state" for the retail market, which features a quarterly Price to Compare.

The PUC also said that the adopted procurement strategy is, "intended to ensure the provision of default service to customers on a least cost basis" (emphasis added). The recommended decision in the case had emphasized "price stability" in formulating the Duquesne Light plan, though absent a written order it was unclear if the PUC struck such reliance on "price stability" as a deciding factor.

In the news release, the PUC said that default supplies for residential and lighting customers would be acquired through 12-month full requirements contracts from third party suppliers through competitive requests for proposals. It was not immediately clear if the delivery periods of these contracts would be staggered, thereby establishing the semi-annual Price to Compare, or whether the underlying portfolio contracts would remain static for a 12-month period, with the semi-annual default service rate change only reflecting reconciliation, rather than changes in the default service portfolio.

The PUC said in a news release that it also adopted a retail opt-in aggregation program at Duquesne Light commencing in July 2013, with pricing based on a five-percent savings off of Duquesne's Price to Compare for four months plus a $50 cash bonus, followed by an eight-month fixed price offer by participating competitive electricity suppliers.

Although precise details regarding the opt-in aggregation program were not available, a statement from Commissioner Pamela Witmer said that the program would be similar to what the PUC previously ordered at PECO and the FirstEnergy companies (though it should be noted the PUC directed each EDC to propose its own customer assignment process for the aggregation, and each EDC has proposed unique processes)

Additionally, Duquesne Light is to offer an ongoing "standard offer" customer referral program commencing in August 2013 under which suppliers shall offer customers a seven-percent price discount to the current Price to Compare for 12 months.