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Pennsylvania PUC to Order Utilities to Consider Longer-
October 17,
2011
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Copyright 2010-
The Pennsylvania PUC has tentatively ordered the electric distribution companies
(EDCs) to consider semi-
The direction, part of a tentative order on intermediate recommendations regarding the PUC's investigation of the retail market, is tentative and subject to comment before being adopted in a final order.
Nevertheless, at this point the PUC is, "interested in weighing the benefits of semi-
Accordingly, in the tentative order, the Commission recommended, "that EDCs contemplate
the incorporation of semi-
As first reported by Matters Friday (10/14), the PUC has tentatively issued a series of recommendations to be incorporated into the EDCs' next default service plans (for delivery beginning June 1, 2013), such that any ultimate changes in retail market design adopted by the PUC after the completion of its retail market investigation may be harmonized with the default service plans which, due to timing, must be designed before the PUC completes its retail investigation.
Chiefly, the PUC tentatively recommends that EDCs, for the next default service period, file default service plans that run for two years, with the period aligning with the PJM Planning Year. "The Commission believes that two year plans will provide a reasonable time period to allow for implementation of any long term changes proposed in the Investigation," the tentative order says.
The Commission does not want to hinder the ability of EDCs and other interested parties to formulate a portfolio of energy contracts that satisfy statutory requirements for default service. Accordingly, the tentative order would avoid mandating a prescriptive portfolio of contract lengths.
However, the tentative order would recommend that EDCs file plans, "that limit or eliminate the existence of short term energy contracts extending past the end date of the default service plan time period."
The tentative order contends that adherence to such a policy can be achieved while still obtaining compliance with statutory requirements. "The Commission also believes that the approval of various EDCs' presently effective default service plans does not define these portfolios as the only possible prudent mix of contracts," the tentative order says.
Further, at a minimum, the tentative order recommends that EDCs limit the proportion of long term contracts that make up their default service plan energy portfolio. In addition, the tentative order recommends that EDCs consider using already existing long term contracts from previous or presently effective default service plans to satisfy compliance with the long term contract mandate of 66 Pa. C.S. § 2807(e)(3.2)(iii).
The tentative order would also recommend that EDCs incorporate an opt-
Additionally, the tentative order would recommend that EDCs incorporate a customer referral program within their default service plans. Again, the Commission would not propose a specific format for referral programs within its order, again directing that the proposal being discussed by stakeholders should serve as a "starting point." The PUC noted that referral programs can range from programs which simply inform and direct customers to PA Power Switch, to programs where EDC call center representatives assist customers with enrolling onto a standard "referral program" competitive supply product.
To address the statutory requirement that EDCs offer a Time of Use generation option, the tentative order would recommend that EDCs "contemplate" contracting with a retail supplier to offer a default service TOU option.
Finally, the tentative order would recommend that EDCs "contemplate" expanding hourly-
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