FirstEnergy-Pa. EDCs File Default Service Plan, Confirm Lowering Of Hourly Pricing Threshold

FirstEnergy's four Pennsylvania electric distribution companies have filed for approval of a default service plan covering the period starting June 1, 2019

A copy of the filing was not immediately available.

As such, it was unclear whether the FirstEnergy EDCs were proposing any changes under the plan, such as a change to the purchase of receivables (POR) clawback approved in the current default service plan

The FirstEnergy EDCs' most recent default service plan covered the period through May 31, 2019. Parties agreed, and the PUC adopted, a provision in such plan that provides that the procurement schedule and related design as contained in the plan would be replicated for the 2019-2021 period, except that a collaborative would be held prior to the EDCs' filing to continue the program, with the EDCs and parties free to propose changes for consideration

FirstEnergy said in a news release, "The companies also are proposing a change for commercial customers served on the GS Medium Rate Schedules with demand usage billing in excess of 100 kilowatt hours [sic]. Rather than use the current system of fixed default service prices that change quarterly, the companies want to move qualifying customers to an hourly pricing schedule. "

As previously reported, the current default service plan provides that the FirstEnergy-PA utilities (Met-Ed, Penelec, Penn Power, and West Penn Power) would lower the hourly pricing threshold to 100 kW effective June 1, 2021. However, the current plan provides that EDCs would lower the hourly pricing threshold to 100 kW effective June 1, 2019 for any EDC where smart meters will be used for hourly pricing billing purposes by that date

The current hourly pricing threshold is 400 kW. Customers in the 100-400 kW range are currently served on a mix of fixed priced full requirements contracts, which includes a mix of 3-month (28%), 12-month (36%) and 24-month (36%) terms.

FirstEnergy's news release did not describe the specific product mix or product type for small customer default service, other than stating that, as proposed, the first auction will be held between October 20 and November 20, 2018, with others scheduled in January, April, and June of 2019.

FirstEnergy said that the filing includes the continuation of the Customer Referral Program that was established in August 2013