OCC Says PIPP Non-shopping Customer Carve-out Auction Resulting In Customers Paying 45% More Than Standard Default Service Rate

The Ohio Consumers' Counsel sought to re-introduce Percentage of Income Payment Plan (PIPP) customer electricity load back into the default service auctions for Standard Service Offer (SSO) customers, stating the current approach to PIPP load has resulted in customers paying nearly 5 cents per kWh more than the SSO at Dayton Power & Light

PIPP customers may not shop in Ohio. Under Ohio Rev. Code § 4928.54, PIPP load is carved out of the SSO auction, and a separate auction is held. While a wholesale auction, the PIPP auction is limited to companies certified as retail suppliers

OCC notes that Ohio Rev. Code § 4928.542 provides that the winning bids under the PIPP auction or alternative competitive procurement shall, "Reduce the cost of the percentage of income payment plan program relative to the otherwise applicable standard service offer established under sections 4928.141, 4928.142, and 4928.143 of the Revised Code."

However, OCC alleged that PUCO has approved PIPP rates in excess of the SSO.

OCC alleged, "DP&L’s PIPP consumers are paying more than consumers being served under the standard service offer -- $0.1577/kWh versus $0.1091/kWh during the summer months. This means PIPP consumers are charged $0.0486/kWh more for their generation than standard service offer consumers."

"This independent PIPP auction has yielded mixed results (sometimes benefiting PIPP consumers as required by law) over the years. But the last two auctions have resulted in significant overcharges to DP&L PIPP consumers. At-risk, low-income PIPP consumers cannot lawfully be billed higher generation rates on a per kWh basis than non-PIPP consumers served under the DP&L standard service offer, per R.C. 4928.542," OCC said

OCC said that PIPP customer load should be combined into the SSO auctions. OCC says that statute permits such a change

OCC's proposal was made in a docket in which DP&L recently proposed changes to the schedule and term lengths for its SSO auctions (see story here)

OCC, in the DP&L filing, expressed similar concerns with PIPP rates at the other EDCs

OCC also said, "But fixing the problem going forward is just part of what is needed for DP&L’s PIPP consumers. They need help now. Based on our estimates, they are presently being charged higher electricity prices in violation of law, R.C. 4928.542. Their current plight also needs a solution."

Case No. 17-957-EL-UNC