HMS Legal Blog
News and commentary on various legal issues.
The Pennsylvania Public Utility Commission will now decide whether migration riders will be permitted for electricity customers, at the same time it is moving forward with its Retail Markets Investigation and its notable efforts to make the electricity markets more competitive.
The PUC yesterday took a big first step toward creating an electricity market where most customers are served by competitive suppliers, and not by utilities, and unanimously voted to adopt recommendations for the next round of default service plans that will be filed by Pennsylvania’s electric utilities.
Two electric distribution companies, First Energy and PECO Energy Company, have filed their default service plans for service that will begin in 2013 – before the PUC has issued final guidance on what those plans should include.
On December 15, 2011 the PUC issued two orders designed to make Pennsylvania’s retail electricity market fully competitive. Both orders are a product of the PUC’s ongoing Investigation of Pennsylvania’s Retail Electricity Market (“RMI”), Docket No. I-2011-2237952. The first order (“RMI Final Order”) addresses the desired features of soon-to-be-filed electric utility default service plans and programs that will be implemented as part of those plans. The second order (“RMI Work Plan Order”) provides granular detail on specific components, including consumer education, accelerating of switching time frames, customer referral programs, and retail opt-in auctions.
The first product of the PUC’s Retail Markets Investigation is expected in the form of a Tentative Order to be voted on at the PUC’s October 13, 2011 Public Meeting, and will address the Electric Distribution Company (“EDC”) Default Service Plans for June 1, 2013 and beyond.
The PUC recently issued a Tentative Order seeking comment on a number of issues involved in the implementation of the deployment of smart meter technology throughout the Commonwealth and the data transactions required to support that implementation. Smart Meter Procurement and Installation, Docket No. M-2009-2092655 (Tentative Order entered June 30, 2011).
In a 4 to 1 vote, the Pennsylvania Public Utility Commission “officially launch[ed] the investigation of the competitiveness of the retail electric market with the goal of making recommendations for improvements to ensure a properly functioning and workably competitive retail electric market.”
The Pennsylvania Public Utility Commission unexpectedly voted to delay implementation of the electricity shopping Customer Education Program for Metropolitan Edison Company and Pennsylvania Electric Company. The Commission was addressing an audit of the plans, which cost about $900,000 each, when it suspended implementation pending further comment from participants. The Commission appears to be concerned that, due to lack of electric generation supplier participation in those territories, customer education about competitive alternatives may be premature.
It’s official - Pennsylvania has passed the 1 million customer mark in electricity shopping. According to the latest weekly update on the Pa. Power Switch website (www.PaPowerSwitch.com), the total number of customers switching to an electric generation supplier as of March 23, 2011, was 1,001,062.
The PUC has ruled unanimously that opt-out municipal aggregation programs violate the Commission’s regulations regarding the standards for changing a customer’s electricity generation supplier.
In a move that reflects growing concern over door-to-door marketing of retail energy the Pennsylvania PUC is seeking the input of industry stakeholders with an eye to adopting regulations that will curb perceived abuses.
After only a few months of collecting the newly increased rates from its 2010 Rate Case, Columbia Gas of Pennsylvania is back before the Pennsylvania Public Utility Commission seeking an additional $37.8 million in annual revenue.
Today, in split vote, the PUC approved new regulations intended to level the playing field for natural gas competition.