Retail Suppliers Seek Stay of Directive in PUC's "Fixed Means Fixed" Order

The Retail Energy Supply Association has sought a stay of the requirement that retail electric suppliers conform, by January 1, 2016, their marketing materials to the Public Utilities Commission of Ohio's recent "fixed means fixed" order, arguing that the PUCO order implies that there will be further changes made in subsequent rulemakings, and that RESA intends to file for rehearing of the "fixed means fixed" order.

As previously reported, PUCO ruled that, "[I]n all CRES contracts, whether residential, commercial, or industrial, fixed should mean fixed ... Consequently, the Commission finds that, on a going-forward basis, CRES providers may not include a pass-through clause in a contract labeled as 'fixed-rate.'"

RESA argued that PUCO's order, however, makes it clear that further changes will be forthcoming and that the specifics have not been finalized. RESA noted that PUCO's order said that, "the Commission finds that changes to the Commission's current rules should be initiated in order to provide clearer, more specific guidance for customers and CRES providers in the future."

RESA also informed PUCO that, "RESA intends to raise significant and compelling arguments on rehearing that may result in further changes to the Commission's conclusions on this [pass-through] issue."

Given the potential changes on rehearing or through the anticipated future rulemaking, "it is not reasonable to require all CRES providers in Ohio to modify their existing marketing materials by January 1, 2016," RESA said

"[W]ithout a stay, CRES providers will be required to expend the time, resources and money making changes that may not actually correspond with the Commission's final decision in this matter or the final rule revisions adopted in the subsequent Commission docket," RESA said

"RESA requests that the Commission stay the requirement that all CRES providers modify their marketing materials until the Commission has ruled upon the RESA rehearing petition and finalized rule changes," RESA said

"The stay will not result in substantial harm to others because the Commission's interpretation will remain in effect unless otherwise modified on rehearing. Moreover, the only CRES provider against whom there have been complaints filed at the Commission is not passing through charges anymore and there is no reason to believe that other CRES providers will take such actions. A stay on mandating changes to the marketing materials will only toll the time for making changes for a temporary period - until the Commission issues final decisions in this proceeding and in the rulemaking," RESA said