Say What? Retail Supplier Says Pa. Variable Rate Controversy Results from "One Or Two Suppliers"

The "extreme" pricing which has been the impetus for several proposed market changes in Pennsylvania result from, "one or two suppliers," NRG Retail Northeast said in comments to the Pennsylvania PUC.

Specifically, NRG Retail Northeast said:

"[D]ue to the competitive pressures of the retail market, variable price changes are generally infrequent and/or modest in amount; the extreme pricing pursued by one or two suppliers this winter (which is the impetus for these revised rules) is an aberration and likely to be an unsuccessful business model"

"[A]dopting regulations aimed at solving a once in 20 year weather event and/or the acts of one or two irresponsible suppliers will only impede the development of a properly functioning competitive retail market to the detriment of consumers."

We understand retail supplier pricing is proprietary so NRG cannot know what is being billed by other suppliers.

However, even a cursory reading of local press coverage, or of new complaint dockets filed with the PUC, would indicate that there are far more than just "one or two" suppliers drawing customer ire.

Specifically, the following suppliers have been cited in at least one press report as the source of an electric bill that was shockingly high to the customer [ADVERTISEMENT: many of these reports have been featured on RetailEnergyX.com]:

American Power and Gas
Blue Pilot Energy
Clearview Electric
Great American Power
Hiko Energy
IDT Energy
Palmco Energy
Starion Energy
U.S. Gas & Electric

EnergyChoiceMatters makes no averment as to whether any rates charged by these suppliers were "extreme," and only notes that customers have alleged such pricing. Moreover, when NRG says that only "one or two" suppliers is engaged in "extreme" pricing, NRG does not place a threshold on "extreme." If you define extreme to mean variable rates around 20¢, we think there are likely at least 10 suppliers who billed such rates -- but if you instead define extreme to mean 40¢, then the number of suppliers involved may dwindle significantly.

However, the distinction between 20¢ and 40¢ is one without a difference, at least to the customer, insofar as even rates of 20¢ are double the default service rate and would still be creating the same amount of controversy.

To say that the variable rate problem in Pennsylvania results from only "one or two suppliers" gives the appearance of either a supplier drastically out of touch with on the ground customer conditions, or one in denial about how severe the problem is.