Settlement Would Require Study of Introduction Of New Bypassable Retail Adder At Utility

A settlement concerning the FirstEnergy Pennsylvania utilities' default service programs for the four-year period beginning June 1, 2017 would require the convening of a stakeholder collaborative to examine the potential introduction of a new bypassable retail adder at the EDCs.

As previously reported, the settlement, signed by all major parties to the case, would among other things, introduce a clawback to POR at the FirstEnergy EDCs, and lower the hourly pricing cutoff for default service.

See prior stories for more details on the settlement:

Settlement Would Introduce Purchase of Receivables "Clawback" At Pennsylvania Utilities

Settlement Would Expand Hourly Pricing at Pennsylvania EDCs, Retain Use of Three Month Contracts For Small C&I Default Service Portfolio

Additionally, the settlement would require the EDCs to convene a stakeholder collaborative to explore the establishment of a, "bypassable retail market enhancement rate mechanism."

The settlement provision was prompted by proposals from the Retail Energy Supply Association made during the case to require the EDCs to unbundle default service costs that it currently recovers through distribution rates and to require that those costs be recovered through the Price to Compare.

Although the settlement does not adopt RESA's recommendations in this regard, the required collaborative will further explore such issues regarding establishment of a bypassable retail market enhancement rate mechanism. The FirstEnergy EDCs are to make proposals by January 31, 2018 in a docketed proceeding related to the issue following discussion and input from the collaborative

"Establishing a forum to collaboratively address these issues is a reasonable step forward," RESA said

Any retail adder mechanism proposed will be revenue neutral to the EDCs, the settlement provides