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 Pennsylvania Public Utility Commission (PUC) recently announced the Agenda for their November 10, 2011, en banc hearing, which is part of the PUC’s ongoing investigation into Pennsylvania’s competitive retail electricity markets.

Following a presentation of consumer survey results, the en banc hearing will be divided into five panels addressing issues such as consumer survey results; a statewide consumer-education campaign; accelerated switching timeframes; customer referral programs; retail opt-in auction; and default service plans beyond June 2013.  The panels include a mix of consumer advocates as well as utility and supplier representatives.

The hearing is to be held:
12:30 p.m. Nov. 10, 2011
Hearing Room 1
Commonwealth Keystone Building
400 North St., Harrisburg, PA

The hearing is designed to provide insight on key issues that the PUC plans to address either before or as part of the intermediate work plan to promote competition.  The PUC has selected panel participants representing a diverse set of perspectives.  Panel participants will make a short presentation then the Commissioners will conduct a question and answer session of each panel.

Interested parties are welcome to submit written comments after the en banc hearing no later than Nov. 23, 2011. Comments along with any questions about the hearing should be directed to This e-mail address is being protected from spambots. You need JavaScript enabled to view it . The comments will be considered as part of the process to develop an intermediate work plan.

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.

In light of ongoing concerns that incumbent utilities could share customer information, link regulated services with non-competitive services, and either directly or indirectly favor affiliated generators and thereby compromise efforts to achieve a truly competitive market, the Public Utility Commission at its August 25, 2011, public meeting issued a proposed rulemaking to revise existing competitive safeguard regulations at 52 Pa. Code §§ 54.121-123, which have been in effect since July 2000.  Comments on the proposed amendments are due in mid to late October, 45 days from the date of their publication in the Pennsylvania Bulletin.

On July 28th, 2011, the Pennsylvania Public Utility Commission entered an Order intended to provide guidance to the PUC Staff and interested stakeholders regarding issues to be addressed in Phase II of the PUC’s Investigation into the competitiveness of Pennsylvania’s retail electric market.  The Phase II process will involve a series of technical conferences to be chaired by the PUC’s Office of Competitive Market Oversight (OCMO) as well as additional en banc hearings.

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 January 2009, PPL Electric Utilities Corp. (“PPL”) sought Pennsylvania Public Utility Commission (“PUC”) approval to construct a 500kV Pennsylvania-New Jersey transmission line, part of which, subject to the issuance of appropriate permits, will run through the National Park system in Pennsylvania's Pocono Mountains.  The project involves modernization of an existing 230kV transmission line and the exercise of eminent domain over five parcels of land.  A PUC Administrative Law Judge issued a recommended decision granting PPL’s application on the condition that PPL not begin construction on the 230kV line prior to obtaining all approvals necessary for construction.  The PUC's final opinion and order adopted the ALJ’s recommended decision but also required that PPL inform the PUC whether it intended to defer its construction schedule and refrain from constructing a certain portion of the 230kV line until obtaining a National Park Service permit.  On reconsideration, the PUC clarified that PPL could begin construction on any other part of either line that was not subject to the National Park Service permit because to hold otherwise “would result in a significant, unacceptable delay in light of the demonstrated need for the line.”

Last week, the en banc Commonwealth Court  upheld in Metropolitan Edison Co. v. Pa. Pub. Util. Comm’n, No. 532 C.D. 2010 (Jun. 14, 2011), the Pennsylvania Public Utility Commission’s (“Commission”) decision in two consolidated cases in which the Commission held that “marginal transmission losses” or “line losses” are generation-related costs and are not recoverable from ratepayers under the Companies’ Transmission Service Charge Riders.  In a surprising upset for the Commission, however, the court remanded the case in-part for further consideration on whether Companies should be permitted to collect carrying charges.

The PA PUC’s recent public hearing to explore the future of the competitive electricity markets in Pennsylvania was no less than a resounding success according to Chairman Robert Powelson of the Commission.

The Pennsylvania Public Utility Commission has received comments and reply comments from various parties on its April 1, 2011 Tentative Order regarding changes to electric distribution companies’ (“EDCs”) energy efficiency and conservation plans (“EE&C Plan”) under Act 129.  See 66 Pa.C.S. § 2806.1.

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.