Utility Reports Default On Tariff By Retail Supplier, Seeks Termination Of Supplier's Participation In Choice Program, Transition Of Customers

Vectren Energy Delivery of Ohio, LLC d/b/a CenterPoint Energy Ohio ('CEOH') provided to the PUC of Ohio a, "notice of material default by Median [Median Energy Corp.] and request for authority to transition Median’s customers and terminate Median’s participation in CEOH’s Choice Supplier Pooling Service ('Choice Program')."

Vectren alleged, "On August 11, 2022, Median’s customer count dropped below 100 customers in violation of the Tariff. CEOH first contacted Median on January 25, 2022, when the customer base was 110, and CEOH continued to contact Median on March 3, 2022, June 1, 2022, June 17, 2022, and July 13, 2022, to request information on Median’s plans to increase customer count to stay in compliance with the Tariff requirement. On August 12, 2022, CEOH contacted Median to inform them that Median’s customer base had dropped below 100 customers, and that failure to respond to CEOH with plans to return to compliance might result in CEOH pursuing Median’s termination from the Choice Program."

Vectren alleged, "Despite CEOH’s repeated outreach, Median has not responded or proposed a plan to reach compliance with the customer count/volume requirement of the Choice Program. CEOH considers this to be a material default of its Tariff and the Agreements under 4901:1-27- 13(E)(10). As required by Ohio Admin. Code 4901:1-27-13(F)(1), on November 17, 2022, CEOH served a written notice of the default in reasonable detail and with a proposed remedy to Median by electronic and postal mail. CEOH also provided a copy of the notice to the Commission. The notice required Median should reply to CEOH by December 2, 2022, with a plan to return to compliance with the terms outlined in the CEOH Tariff, or CEOH would commence action to request Median be terminated from participation in CEOH’s Choice Program."

Vectren alleged, "Given that Median has failed to respond to CEOH with a plan to return to compliance with the terms of CEOH’s Choice Program, CEOH considers the material default to be 'due to reasons other than underdelivery or nondelivery.' OAC 4901:1-27-13(F)(3). Therefore, 'if the commission, or an attorney examiner, does not issue an entry to suspend or reject the action proposed by the natural gas company within ten business days after receipt of the request, [CEOH’s] request to terminate or suspend shall be deemed authorized on the eleventh business day.'"

Vectren noted that, "This Notification of Default and Request for Authorization to Terminate Participation relates only to Median’s participation in CEOH’s Choice Program, and CEOH does not intend that this request would affect Median’s participation in the Choice Supplier Programs of any other utility."