PECO, Consumer Advocates Reach Settlement To Defer Consideration Of Introduction Of Shopping For CAP Customers At PECO

PECO and several consumer advocates have reached a settlement to defer issues relating to shopping for electricity Customer Assistance Program (CAP) customers until PECO's next default service proceeding

Electricity CAP customers at PECO are not currently authorized to take service from a competitive electric generation supplier (EGS)

PECO had proposed extending to CAP customers the ability to shop as part of its DSP II default service proceeding.

The PUC previously adopted an order requiring that PECO allow CAP customers to shop; however, a court remanded the issue to the PUC with the direction that EGS products for CAP customers shall not include an early termination fee (background here)

Consideration of CAP issues at PECO have been abated pending litigation of CAP issues at PPL Electric.

During the abatement, the Commonwealth Court affirmed that, at PPL, CAP shopping could be limited to a CAP Standard Offer Program (CAP-SOP), with a required minimum discount to the PTC at the time of enrollment. Subsequently, the PUC approved a CAP-SOP at the FirstEnergy EDCs that requires that the CAP rate never exceed the PTC, and the PUC later issued a proposed policy statement which would apply such CAP shopping limitation to all EDCs (see our exclusive prior story on the PUC's proposed CAP policy statement here)

Notably, in the proposed policy statement, utilities would be required in their next default service plan proceeding to include a CAP shopping program under which CAP customers may only shop under a retail electric supplier plan that has a price at or below the Price to Compare during all times of the customer's contract

The settlement agreement notes that PECO intends to initiate its next default service plan proceeding in March 2020.

In light of the above, the settling parties agree to the termination of the current PECO CAP shopping proceeding, and to defer the issue of shopping for electric generation service by PECO CAP customers until PECO's next default service proceeding

"Because PECO plans to file its next default service plan in March 2020, the Settlement promotes efficiency by avoiding the potential for litigation of many of the same issues in this proceeding, the public comment process established by the Commission for the proposed CAP Shopping Policy Statement, and again in the context of the Commission's evaluation of PECO's next default service plan," the settling parties said

"The Joint Petitioners acknowledge that the CAP Shopping Policy Statement provides that it will be effective for all default service program filings submitted six months after adoption of the CAP Shopping Policy Statement. See CAP Shopping Policy Statement, p. 9. While it is possible that this six-month period will not have elapsed prior to the filing of PECO's next default service program in 2020, the Joint Petitioners believe that efficiencies in that future proceeding will still be attained with a new record developed in the context of the RESA Order and recent Commission decisions and without the obligation to address testimony from two prior default service proceedings," the settling parties state

Settling parties include PECO Energy Company, the Office of Consumer Advocate, the Coalition For Affordable Utility Services And Energy Efficiency In Pennsylvania (CAUSE-PA), and the Tenant Union Representative Network (TURN) and Action Alliance of Senior Citizens of Greater Philadelphia

P-2016-2534980