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PUC Seeks Comments On Retail Electric Competition, Issues Default Service Guidelines
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The Public Utility Commission Thursday issued a proposed intermediate work plan as part of its Retail Electricity Markets Investigation designed to improve the state’s retail electricity market. The Commission also issued final recommendations to guide the state’s electric distribution companies in developing upcoming default service plans.
Electricity Market Investigation
The Commission voted 5-0 to receive comments on the proposed intermediate work plan, which provides a framework for more specific action items pending before the Commission. The intermediate work plan provides recommendations and proposals regarding the:
-- Expansion of consumer education to drive electric customers to www.PAPowerSwitch.com, the PUC’s website dedicated to helping consumers shop for electricity, and to increase general awareness of competitive markets and how to shop;
-- Acceleration of the switching timeframe when a customer shops for an alternative supplier;
-- Initiation of a customer referral program;
-- Initiation of a retail opt-in auction program;
-- Inclusion of the EDCs’ price to compare on customer bills; and
-- Increase in coordination between EDCs and EGSs.
The proposal calls for all issues and goals included in the intermediate work plan to be implemented prior to or in conjunction with the expiration of the electric distribution companies’ next round of default service plans.
Interested parties will have 30 days from the entry of the Order to comment, followed by a 15-day reply comment period. More specific instructions on how to comment will be contained within the Order.
On April 28, 2011, the Commission launched its retail electricity market investigation, which is being conducted in two phases. The first phase was designed to assess the status of the current retail market and explore what changes need to be made to allow customers to fully realize the benefits of competition.
On July 28, 2011, the Commission directed the Office of Competitive Markets Oversight to hold technical conferences to address intermediate and long-term issues pertaining to the competitive retail electricity market and provide specific proposals for changes to the existing retail market and default service model.
This second phase will examine and address how to best resolve the issues raised and implement the prudent changes identified based upon information gathered during the Investigation.
Default Service Guide
The Commission voted 5-0 to provide final recommendations that are intended to serve as guidance to the EDCs in developing the format and structure of their upcoming default service plans. The recommendations are part of the PUC’s ongoing investigation of Pennsylvania's retail electricity market and technical conferences that are being held to address intermediate and long-term issues pertaining to the competitive market.
The final recommendations are intended to provide EDCs with the flexibility to craft default service plan filings to address their unique operations while also supporting the PUC’s efforts to enhance the retail electric competitive market. These recommendations are designed to:
-- Ensure that the upcoming default service plans do not hinder the ability of the Commission to implement changes that will be addressed within the investigation;
-- Advise EDCs and other parties that they will be expected to amend proposed default service plans when possible to incorporate changes that may arise out of the PUC’s investigation of Pennsylvania's retail electricity market; and
-- Provide guidance on default service plan components that the Commission believes can improve the competitive marketplace.
The recommendations address default service plan time periods; energy contract durations; retail opt-in auctions; referral programs; time-of-use rates; default service rate adjustment structure (residential and small commercial); and hourly-priced default service (medium commercial and industrial).
Proposed recommendations were issued for comment on October 14, 2011. More than 25 parties filed comments.
For more information, visit the PUC's Retail Electricity Market Investigation webpage.
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12/19/2011 |
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