Retail Supplier Files Complaint Against Wisconsin Electric Power Company Over Six-Month Delay in Switch Requests

Integrys Energy Services has filed a complaint at the Michigan PSC against Wisconsin Electric Power Company concerning Wisconsin Electric Power's refusal to promptly execute switch requests submitted by Integrys Energy Services for two of the utility's customers.

Specifically, Integrys Energy Services is seeking to serve two customers at Wisconsin Electric Power which Integrys Energy Services said have been receiving power supply and delivery services from Wisconsin Electric under the General Primary Full Requirements or Retail Access Service Time-Of-Use Rate Cp1 tariff.

Each customer, however, also has a "traditional service agreement" with Wisconsin Electric Power. Wisconsin Electric Power has asserted that a provision in the service agreements of the customers requires a 6-month notice for termination of the agreement, and therefore, has delayed the switch requests by six months.

However, Integrys Energy Services argued that each service agreement includes language providing that the agreement is subject to the utility's Rules and Regulations on file with the Michigan Public Service Commission, and subject to such filed changes in the Rules and Regulations and the General Primary Rate Schedule.

Accordingly, Integrys Energy Services says that the General Primary Tariff controls regarding retail access service. The General Primary Tariff specifies that "Customers who meet the availability requirements of the Cp1 rate schedule may contract for retail access service ... Customers taking retail access service are also subject to the Terms and Conditions contained in the Retail Access Service tariff rate schedule RAS-1, Section E."

The Retail Access Service tariff schedule RAS-1, Section E contains, in Section 2.4, requirements for customer enrollment and switching. These requirements specify that Wisconsin Electric, "will normally validate a Switch Request within three (3) business days of the receipt of the Switch Request and will transmit a Switch Response to the AES."

It further specifies that "the Switch Date shall be effective on the next scheduled meter read date that is not less than eight (8) business days after a Switch Request has been validated by the Company."

Finally, Integrys Energy Services said that Section 3.2 of the Retail Access Service tariff schedule RAS-1 provides in pertinent part: "All Switch Requests will be handled in accordance with Section 2.4 of this tariff ..."

Integrys Energy Services further said that termination of the service agreements is not implicated here (and thus no need for the six-month provision); the agreements allow customers to take retail access as allowed under the tariff, under the timeline set forth in the tariff.

"Wisconsin Electric may not, through its service agreements, impose on its customers requirements for the election of retail access service that are not approved in its tariffs and that act as barriers to competition. In doing so here, Wisconsin Electric has effectively attempted to delay or inhibit retail competition in its service area in violation of the Customer Choice and Electricity Reliability Act," Integrys Energy Services said.

"The actions of Wisconsin Electric, if allowed to stand, will have a chilling effect on the retail access market in Respondent's service area, as it will require a commitment to retail access full 6 months before any financial benefits could be gained by this change in service, thereby increasing the uncertainty about the financial benefits to be gained," Integrys Energy Services said.

Integrys Energy Services said that Wisconsin Electric, "is alone among Michigan's electric utilities in seeking to delay a customer's ability to move to retail access service through the invocation of a 'termination notice.'"

"If the Commission were to allow this innovative and anti-competitive practice to stand, it would threaten the ability of thousands of customers across the state to realize the benefits of retail access service, as it would give implicit approval to other utilities to institute similar delay tactics when full requirements customers seek to shift to retail access service," Integrys Energy Services warned.

Integrys Energy Services sought a PSC order directing Wisconsin Electric to give immediate effect to the switch requests, and related relief.

Wisconsin Electric serves customers on the Michigan upper peninsula.

Case No. U-17422