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Workgroup Recommends New CAP Customers Automatically Be Returned To Default Service If Utility Uses CAP Auto-Enrollment
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The Data Sharing Subgroup of the universal service working group (USWG) at the Pennsylvania PUC has recommended that, in cases of automatic customer enrollment into a customer assistance program (CAP), any shopping customers should be automatically enrolled in CAP and dropped to default service upon CAP enrollment, with customers provided a notice that they may opt-out of CAP
The Data Sharing Subgroup did not reach consensus on whether auto-enrollment of customers into CAP (which would automatically move customers to CAP based on LIHEAP and/or other data without the customer applying for CAP status)
should be permissive or mandatory and believes that further consideration may be needed regarding the issue of cost and to work to identify a standardized methodology for
projecting anticipated costs.
However, to the extent auto-enrollment into CAP does occur, the Data Sharing Subgroup recommends that the PUC:
(1)
prohibit suppliers from charging an early termination or cancellation fee for customers
seeking enrollment in CAP; and
(2) require public utilities to include information in an
opt-out notice, as detailed in a work group report and noted below, that customers will be returned to default service if they do
not "opt out" of auto-enrollment in CAP.
For new CAP participants, the Data Sharing Subgroup recommends that the PUC
issue guidance permitting auto-enrollment of LIHEAP recipients that were not previously
enrolled in CAP based on LIHEAP data
The Data Sharing Subgroup recommends that
the PUC require a public utility to send customers who have not previously participated
in its CAP an opt-out notice within 10 days of receiving LIHEAP data from DHS. In addition to the note about the customer being returned to default service upon being enrolled in CAP, the
opt-out notice should include:
• An indication that the customer is eligible for CAP.
• An explanation of the benefits and program rules of CAP.
• Notice that, absent the customer opting out, the customer will be auto
enrolled in CAP on XX date (30 days from receipt of the data).
• A requirement that a public utility send a welcome letter following auto-enrollment
to explain the rights, obligations, and benefits of CAP.
As previously reported, some Pennsylvania utilities already automatically return customers to default service under CAP enrollment, while others direct the customer to cancel their supplier service themselves in order to complete CAP enrollment. The issue has been raised in PPL Electric's current default service plan proposal (story here)
M-2023-3038944
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Recommends Prohibition On Early Termination Fees For Such Customers
March 21, 2024
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Reporting by Paul Ring • ring@energychoicematters.com
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