Program to Allow Low-Income PECO Customers to Take Retail Supply Won't Include Price Cap; PUC Cautions Suppliers on "Great Social Responsibility"

The Pennsylvania PUC approved a program to expand retail choice eligibility to electric customers in PECO's Customer Assistance Program (CAP).

These customers had previously been unable to participate in retail choice.

A final written order from the PUC was not immediately available, but the PUC's adopted program will not include any price cap on the rates charged by retail suppliers to customers in PECO's CAP program. PECO had originally proposed that offers to CAP customers be required to be lower than the Price to Compare.

This led Commissioner Gladys Brown to dissent, in part, who said that, "A potential result, under PECO' s current CAP structure, of not placing a ceiling on the prices that EGSs can charge CAP customers is that the overall cost of PECO's CAP program will rise. Those increased costs will be borne by the residential class as a whole."

Per a motion from Commissioner Pamela Witmer adopted by the PUC, electric generation suppliers will also be able to charge an early termination fee on products offered to CAP customers if CAP customers cancel a contract during its term.

In addition to allowing CAP customers to shop, PECO will open up its Standard Offer Referral Program to CAP customers as of April 15, 2014

Commissioner James Cawley said, "I'd like to emphasize that with this Commission authorization for EGS participation in this segment of the market also comes great social responsibility. EGSs should be very mindful of this responsibility, and ensure that their participation plays a very constructive role, helping these customers achieve more affordable electricity supply and other more affordable services."

"If they do not have such intentions, I strongly advise that they not register to provide service for this customer segment. The Commission is certain to be monitoring these competitive market offers and supply prices very closely," Cawley said.

Docket No. P-2012-2283641