PUC Affirms Authority to Order Retail Suppliers to Issue Refunds

The Pennsylvania PUC affirmed yesterday its authority to require retail electric suppliers to provide refunds to customers under certain circumstances

The PUC was addressing a complaint filed by an individual customer against Respond Power, LLC, which the PUC dismissed for failing to identify a violation of the supply contract, or a provision of the Public Utility Code, associated regulations or a Commission order

However, an initial decision regarding the complaint contained a discussion regarding the PUC's refund authority which the PUC sought to correct.

In the initial decision, the ALJ stated that because the Commission lacks the authority to regulate rates, it also lacks the authority to order a refund or credit to be provided to the complainant.

The PUC adopted a motion from Vice Chairman John Coleman stating, "I do not agree with this characterization of our authority to order refunds or credits."

"The Commission has interpreted Section 2807(d)(l) of the Public Utility Code, 66 Pa.C.S. § 2807(d)(1), to find that a refund is an appropriate remedy when a customer's supplier has been changed without the customer's affirmative consent. The Commission's regulations require an EGS to provide a full refund to customers of all generation charges resulting from an unauthorized switch. 52 Pa. Code § 57.178. This regulation was approved by the Independent Regulatory Review Commission, has been in effect since 1998, and enjoys the presumption of reasonableness. Accordingly, while I agree that the Commission lacks the authority to regulate EGS rates, it is well settled that EGSs may be required to provide refunds to retail customers in appropriate circumstances," Coleman said in the adopted motion.

Docket C-20 14-2429159