Consumer's Counsel Seeks Rate Cap Applicable To Retail Supplier Prices Listed On PUC's Shopping Site

Sought Supplier Rate Cap Could Actually Be LOWER Than Default Service Rates, As Consumer Counsel Says SOS Rates Currently An "Anomaly", Not True Market Benchmark

October 2, 2023

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Ohio Consumers' Counsel has recommended that the PUC of Ohio should impose caps on the prices that retail electricity and natural gas suppliers may offer on the PUCO Apples to Apples rate boards

OCC said, "Action should start but not end with delisting from the apples-to-apples website all unconscionable prices, being those higher than 2.25 times the standard offer for natural gas."

OCC continued, "For electric, during the remainder of the standard offer delivery year, there should be a benchmark market rate determined, because the standard offer is an anomaly (at a very high rate) now. For example, the electric benchmark during this standard offer delivery year could be the 20th percentile lowest price offered on the electric Apples-to-Apples price comparison charts. The 2.25 times threshold for the electric Apples-to-Apples price comparison charts would reference the benchmark, given that the current standard offer is historically anomalous."

OCC made the comments in a proceeding addressing a proposed settlement between a retail supplier and PUCO Staff addressing, among other allegations, the charging of what Staff alleged were, "unconscionably high rates" by the supplier. See details on this settlement here

While made in a supplier-specific proceeding, OCC appeared to seek application of its proposal on a market-wide basis, to all suppliers

To that end, OCC restated its proposal as follows, though there may be a scrivener's error in the text; OCC's inclusion of "and other [sic]", as well as its broadly stated concerns about high pricing noted further below, make it appear OCC that is seeking that the Apples to Apples rate caps should apply to all suppliers

OCC said, "Action should start with delisting from the apples-to-apples website all unconscionable prices by Inspire and other [sic], being prices higher than 2.25 times the standard offer for natural gas. For electric, during the remainder of the standard offer delivery year, there should be a benchmark market rate determined, because the standard offer is an anomaly (at a high rate) now. For example, the electric benchmark during this standard offer delivery year could be the 20th percentile lowest price offered on the electric Apples-to-Apples price comparison charts. The 2.25 times threshold for the electric Apples-to-Apples price comparison charts would reference the benchmark, given that the current standard offer is historically anomalous.

OCC also noted another recent supplier settlement addressed by PUCO, in which PUCO stated in its order (see details here), "As recently noted by Commissioner [Lawrence] Friedeman, '[h]ealthy and effective competition should allow for profit potential but should also introduce price discipline into the market. We can expect competitors’ prices to differ, but the price points among the supplier prices should fall within some reasonable range and should not include excessive or outlier prices. If a competitive supplier’s commodity price manifests a lack of self-discipline in regard to price determination, then I believe this Commission could appropriately consider whether it is appropriate, within its discretion to discipline the competitive supplier’s market behavior.'"

OCC said, "Given that matters involving unconscionable rates are before the PUCO with increasing frequency, the SmartEnergy Order’s call to discipline the competitive supplier’s market should be put to action across Ohio."

"If energy marketers are going to charge Ohioans extreme energy prices that are not market-based, then the very premise of allowing retail marketing should be questioned," OCC said

Case No. 23-720-GE-UNC

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