Pa. PUC Denies Retail Suppliers' Rehearing Request On Order Allowing Electric Utilities To Use On-Bill Billing For Their "Own" Non-Utility Services -- EnergyChoiceMatters.com

Pa. PUC Denies Retail Suppliers' Rehearing Request On Order Allowing Electric Utilities To Use On-Bill Billing For Their "Own" Non-Utility Services

PUC Says Service Performed By Third Party Under Utility Contract Remains A Utility Provided Service; Does Not Amount To Discrimination To Deny Retail Suppliers' Billing Access For Such Service

April 14, 2022

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Reporting by Paul Ring • ring@energychoicematters.com

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The Pennsylvania PUC denied reconsideration of its recent order that had found that the use of "on-bill billing" by the FirstEnergy Pennsylvania electric utilities (the EDCs) for their own non-commodity goods and services, while not offering the same on-bill billing service for the non-commodity goods and services offered by retail suppliers, is not unreasonably discriminatory in violation of the Public Utility Code, 66 Pa. C.S. §§ 101, et seq.

For a full discussion of the PUC's prior finding on such EDC billing, see our story here. As noted in our prior story, the PUC has reached a different conclusion with respect to natural gas utilities, due to different statutory language applicable to each type of utility

Retail suppliers had requested rehearing because the PUC's prior order addressed the situation of utilities providing non-utility services themselves. Suppliers alleged that, after filing an initial complaint, they learned that the EDCs provide on-bill billing for a non-affiliated third party, HomeServe USA, and the PUC's prior finding did not address this issue

However, the PUC denied reconsideration, finding that the services performed by HomeServe are still utility-provided services.

"[W]e are not persuaded that the facts alleged by the EGSs warrant reconsideration or reopening of the record," the PUC said

"As explained by the EDCs, the relationship with HomeServe is not one which demonstrates that the EDCs provide 'on-bill billing' to non-affiliated third parties. Rather, the EDCs contracted with HomeServe to serve as the program administrator for certain of the EDCs’ own non-commodity products and services," the PUC said

The PUC further said, "As explained by the EDCs, the EDCs contracted with HomeServe to provide certain of the EDCs’ own non-commodity products and services, such as electrical line and water heater protection plans, which the EDCs noted was thoroughly explained in the EDCs’ DSP V proceeding. We find that the EDCs do not, as alleged by the EGSs, allow HomeServe to bill for its own non-commodity products and services on the EDCs’ bills."

"We conclude that, as asserted by the EDCs, the material facts in the present case: 'remain unchanged -- the Companies 'do not permit any EGS, affiliate, or other third party to include charges for their non commodity products and services on the Companies’ bills,''" the PUC said

"Given that the facts remain unchanged, the conclusion reached in the Commission’s August 2021 Order," the PUC said that the circumstances of the EDCs’ billing practice is distinguishable from the facts as found in a proceeding involving Columbia Gas (with the electric and gas statutes also differing on this issue). The PUC thus found that the EDCs' actions comport with the Section 1502 prohibition on discrimination in service.

"Based on the foregoing discussion, we shall deny the EGSs’ Petition for Reconsideration and/or For Reopening of the Record, and, consistent with the discussion in our Opinion and Order entered August 26, 2021, deny and dismiss the Complaints," the PUC said

Docket C-2019-3013805 et al.

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