Morning Call: PPL Will Not Place Migrating Competitive Customers on Standard Default Service Prior to TOU Rates

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January 7, 2011

The Allentown Morning Call reports that PPL Electric Utilities will not place customers leaving competitive supply for PPL's optional Time of Use default service plan on standard (non-TOU) default service rates first for one billing cycle, as PPL originally said it would do in extending the TOU program for the period beginning in 2011.

According to the Morning Call, PPL's decision to transfer requesting customers directly from competitive supply to TOU rates, with no interim stay on standard default service, is due to high customer demand, and in recognition of the fact that customers will miss out on lower TOU prices if forced to serve a billing cycle on standard default service during their transition back to PPL generation supply.

After a cursory review, PPL's tariff appears to be silent with respect to how customers migrating from competitive supply to the optional TOU rates are to be treated, and thus the change would not conflict with any current tariff provision.

However, PPL's original filing supporting an extension of the TOU program contemplated that customers leaving competitive supply for PPL TOU rates would serve one billing cycle on the standard default service rate before being able to elect the TOU prices.

Specifically, PPL's original pleading states, "[a] customer receiving competitive supply who returns to Basic Utility Supply Service will return to standard default service.  The customer then may notify the Company of his/her desire to again take service under TOU rates, and the Company will switch the customer, consistent with existing billing practice regarding rate changes, on either the next billing cycle or the next subsequent billing cycle." (See Sept. 23 filing in R-2010-2201138).  

After a cursory review, it does not appear the PUC's December order approving extension of the TOU plan explicitly addressed requirements for customers leaving competitive supply for TOU rates (12/3).

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