The Public Utility Commission Thursday issued for comment recommendations toward changing the default service electricity product that consumers receive, as part of the Commission’s ongoing investigation designed to improve the state’s retail electricity market.

The Commission voted 5-0 to seek comments on the proposed changes, which are designed to provide default service prices that more closely track market conditions.

"I truly believe that the recommendations embodied within this Tentative Order go a long way toward improving retail electric competition within the Commonwealth and thereby creating significant value that will benefit ratepayers across Pennsylvania," said Commissioner Pamela A. Witmer in a statement.

The changes are intended to provide a regulatory framework that encourages electric generation suppliers (EGSs) to invest in Pennsylvania’s retail electric market. These changes seek to move the Commonwealth toward a more robust competitive market, in which consumers enjoy a wide array of generation supply products and offerings from which to choose.

Even with the proposed changes, the Commission continues to ensure that consumer protections remain in place such as:

-- Security of customer information;

-- Reporting requirements for quality of service benchmarks and standards, as well as universal service and energy conservation;

-- Standards for changing a customer’s electricity generation supplier;

-- Marketing and sales practices for the retail residential energy market; and

-- Standards and billing practices for residential utility service.

Interested parties have 30 days to comment. More information on how to comment can be found in the Tentative Order once it has been entered.

On April 28, 2011, the Commission launched its retail electricity market investigation, which was 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 (OCMO) 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.

The second phase examined and addressed how to best resolve the issues raised and implement the prudent changes identified based upon information gathered during the Investigation. Thursday’s proposal is a result of this investigation.

11/12/2012