Pa. PUC Seeks Comment on Supplier Referral Letter at Met-Ed/Penelec Given Minimal Residential Offers

April 1, 2011
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The Pennsylvania PUC will solicit comments regarding whether the provision of supplier referral letters to customers at Met-Ed and Penelec should be delayed given the current minimal number of suppliers offering residential service in the territories (P-2009-2093053 et. al.).

As previously reported (8/19), the default service settlements at Met-Ed and Penelec call for the utilities to send, in envelopes bearing the utility's name and logo, letters to customers notifying customers of available residential and small commercial offers from retail suppliers participating in the letter referral program. The letters notifying customers of supplier offers are to be sent at least twice during each calendar year beginning in 2011.

The utilities are authorized to spend up to $2.25 million of ratepayer funds for the letter referral program; all other costs shall be recovered from participating suppliers.

Given that the only suppliers actively offering residential service in the territories are FirstEnergy Solutions, BlueStar Energy Solutions, and Palmco Power (Met-Ed only), the PUC adopted a motion from Commissioner James Cawley to solicit comments regarding whether the referral program should be delayed or altered to maximize the use of ratepayer funds, such as by delaying the program until there are more active offers, when the program would be more beneficial to suppliers and customers.

Specifically, the PUC will investigate:

- Whether the supplier referral letter should be postponed until such time that a certain threshold number of suppliers have entered the market in either service territory?

- If so, what should the threshold number of suppliers be?

- Should the referral program move forward for residential and small commercial customers, or just small commercial customers?

- Are there other suppliers that fully intend to enter these service territories in the near future?

- Might a delayed, more concentrated campaign be more effective after greater market entry by competitors?

Until the PUC evaluates responses to its questions, it will withhold authorization to commence the letter referral program.

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