PUC: "Time To Look To Competitive Markets" (& Retail Suppliers) To Play More Significant Role In Providing Energy Efficiency

In adopting a stipulation in Columbia Gas of Ohio's distribution rate case, the Public Utilities Commission of Ohio stated, "It is time to look to competitive markets to play a more significant role in the provision of energy efficiency services in this state."

See our related story today for more details on adoption of the stipulation, including terms impacting the retail market and suppliers

One of the few contested issues in the case concerned the proposed withdrawal, under the stipulation, of Columbia's previously proposed demand-side management (DSM) programs to non-low-income customers. The stipulation maintains funding for a low-income weatherization program (WarmChoice)

The Ohio Consumers' Counsel, a supporter of the stipulation, had noted in the case that withdrawal of the DSM program provisions related to non-low-income customers will save Small General Service (SGS) customers approximately $120 million between 2023 and 2027

Certain other environmental and consumer interest groups opposed the stipulation's withdrawal of the non-low-income DSM programs

PUCO adopted the stipulation, including limiting utility-offered DSM programs to the low-income weatherization program (WarmChoice)

In adopting the stipulation, PUCO said that the stipulation's treatment of DSM programs, "promotes the competitive market by relying on competitive suppliers to provide energy efficiency services to customers."

"At the same time, the DSM program provides for the continuation of the WarmChoice program for low-income customers in order to protect at-risk populations who may be unable to afford market-based service," PUCO said

"[T]he Commission notes that the General Assembly codified gas choice over twenty years ago with the enactment of House Bill 9 by the 124th General Assembly," PUCO said

"It is the policy of the state to promote the availability of unbundled and comparable natural gas services and goods that provide wholesale and retail consumers with the supplier, price, terms, conditions, and quality options they elect to meet their respective needs; promote diversity of natural gas supplies and suppliers, by giving consumers effective choices over the selection of those supplies and suppliers; and encourage innovation and market access for cost-effective supply- and demand-side natural gas services and goods. R.C. 4929.02(A)(2), (3) and (4)," PUCO said

The stipulation, "promotes the competitive market by relying on competitive suppliers to offer energy efficiency services to non-low-income customers," PUCO said

"It is time to look to competitive markets to play a more significant role in the provision of energy efficiency services in this state," PUCO said

PUCO noted that, "customers who wish to manage their usage will continue to have access to energy efficiency measures through the competitive marketplace," and that, "we will reiterate that nothing in the Stipulation prevents a consumer from obtaining energy efficiency services from a competitive retail service provider or other provider in the competitive marketplace."

Case 21-0639-GA-UNC et al.