Pa. to "Never" See Robust Customer Migration Under Current Default Service, Powelson Says

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March 15, 2011  

"[A]s long as default service exists in its current form, we are never going to see robust shopping in the Commonwealth [of Pennsylvania]," PUC Chairman Robert Powelson said in prepared testimony before the Pennsylvania House Appropriations Committee, which was addressing the PUC's budget.

While competitive electric markets are "succeeding" in Pennsylvania, Powelson told lawmakers that, based on feedback from customers, "a recurring theme is that consumers worry they will not know who to call when their power goes out, or are afraid that if they switch, they will offend their incumbent utility, with whom they have a longstanding relationship."

Powelson said that the PUC's previously announced investigation of the retail electric market (announced in the FirstEnergy merger order), which will have a particular focus on default service, will help the PUC understand how to best tackle these problems.

"The Commission's goal is to determine the elements of the current retail electricity markets that are working and the elements that are not working, including whether there are other models for providing default service that might provide customers with more options for their electric generation," Powelson said.

"[W]ithout competition, we will not have affordable rates. I believe we are at a crossroads here and that Pennsylvania must take this opportunity to ensure that competitive electricity markets succeed in our state so consumers are able to reap the benefits," Powelson told lawmakers.

Powelson also updated lawmakers on an internal reorganization at the PUC to increase efficiency which includes: (1) incorporating strategy and planning functions within a new Executive Director position; (2) centralizing administrative and personnel functions; (3) more accurately aligning agency bureaus with regulatory functions; (4) consolidating technical staff within one bureau; and (5) clearly separating the agency's prosecutory and advisory functions.

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