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PUC Orders Utilities To Propose Changes To Low-Income Assistance Program To Address Problems From Shopping
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Another state could soon terminate the ability for customers receiving energy assistance funds from shopping for a retail supplier
The New Hampshire PUC has ordered the state's electric utilities to propose solutions to address "the problem" of retail supplier, and CCA, rates to customers in the statewide low-income electric assistance program (EAP) being either "unreasonably" higher or lower than default service rates
While not directing a specific proposal, the PUC found that any restriction on customer shopping for EAP customers would not run afoul of statutory provisions that require that customers be afforded the right to choose their electricity supplier, since EAP participation is voluntary, and customers could still choose to shop by not accepting EAP benefits
The PUC said that the current EAP design which uses the default service rate to calculate benefits, regardless of the customer's shopping status, creates problem both when the customer's actual rate is higher or lower than the default service rate
In cases where the shopping customer's rate is below the default service rate, the customer receives a larger than intended benefit since the program pays benefits based on the higher SOS rate, with the PUC noting that the EAP benefit may even exceed the amount the customer owes on their bill
For instances in which the EAP customer's shopping rate is higher than default service, the PUC said, "we observe that the EAP recipient that chooses a competitive supplier or community aggregation supplier with a higher rate than utility default service could also inadvertently cause a perverse outcome, where the regular ratepayer continues to pay into the EAP program at the same rate, but the EAP recipient pays more than necessary. That outcome becomes more onerous if EAP recipients choose the highest community aggregation or competitive supply option where they could conceivably, and unreasonably, pay more than they would have without being in the EAP program at all, an absurd and highly concerning outcome for New Hampshire’s most vulnerable population."
The PUC further said, "we agree with the argument that participating in the EAP and choosing competitive supply are both voluntary activities, and therefore there is no restriction on customer choice in violation of Chapter 374-F."
The PUC directed that, by March 15, 2025, the utilities shall propose changes to the EAP program, "to address the problem of community aggregation/competitive supply being unreasonably higher or lower cost than what is borne by EAP utility default service recipients."
While not directing a specific design, the PUC made note of a proposal that would restrict EAP customers from choosing a retail supplier or participating in a CCA
The PUC also noted a proposal to bid out aggregated EAP load to be served by a specific supplier at an EAP-specific supply rate
The PUC further cited the prior design which applied EAP discounts to the delivery portion of the bill only
The PUC offered one suggestion of a monthly billing approach, regardless of ratepayers' other granular details, that ensures that the EAP energy credit is never substantially different from the utility default service charges.
Docket DE 22-043
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PUC Notes Accepting Low-Income Energy Assistance Is Voluntary, Says Restrictions On Assistance Customer Shopping Would Not Violate Choice Statute
July 9, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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