Pennsylvania Supplier Returns Customers to Utility Default Service

Pennsylvania customers served by American Power Partners, which was recently purchased by U.S. Gas & Electric, were recently returned to default service unless they affirmatively enrolled onto a new USG&E product.

American Power Partners had been serving customers at PECO, PPL and Duquesne Light.

In a July 9 letter to the Pennsylvania PUC but which was only posted online yesterday, American Power Partners informed the PUC that, "Please note that APP has concluded its marketing in Pennsylvania and will be returning those customers who are currently receiving service back to the utility. Please be advised that APP does not have any products that have termination or early cancellation fees."

Specifically, American Power Partners had been serving customers on a variable rate plan.

In a July 10 notice to American Power Partners customers, USG&E informed customers of its recent purchase of American Power Partners and said that,
"[w]e would like to protect you against future price increases by switching you to a fixed price product."

USG&E offered customers a two-year fixed rate in the notice.

However, USG&E informed customers that if the customer did not affirmatively select the USG&E fixed offer, or did not choose another supplier, by August 9, 2014, the customer would be returned to the utility for default service.

The customers returned to default service were only those formerly served by American Power Partners, and there was no impact on USG&E's organic Pennsylvania customer base.