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Non-Unanimous Settlement At PECO Includes Placing New Shadow Billing Chart On First Page Of Shopping Customer Bills
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A non-unanimous settlement in PECO's default electricity service proceeding would include a new comparison of retail supplier costs and shadow billed default service costs on shopping customer utility consolidated bills, and would also drop customers in the Standard Offer Customer Referral Program (SOP) back to default service if the SOP customer does not make an affirmative choice at the end of the initial SOP term
The non-unanimous settlement was signed by PECO, the Office of Consumer Advocate (OCA), Office of Small Business Advocate (OSBA), the Tenant Union Representative Network and
Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania, and Energy Justice Advocates
The non-unanimous stipulation would govern PECO's default service program for the period June 1, 2025 through May 31, 2029 (DSP VI)
Notably, the non-unanimous stipulation would adopt a modified form of a monthly bill chart, to appear on the first page of utility consolidated bills, comparing the costs to shopping customers under their retail supplier versus the amount the customer would have paid under PECO's price to compare.
The settlement would modify PECO's originally proposed comparison chart to remove the column listing the dollar amount saved (or negative savings) with the retail supplier, and would only present two columns, one showing the total that the customer paid under their retail supplier's service, and the second showing the shadow billed cost that the customer would have paid under PECO's Price to Compare
See an example of the settlement's proposed shadow billing comparison chart below (click image for larger example, or click here)
Standard Offer Customer Referral Program (SOP)
The non-unanimous stipulation would, starting with SOP contracts executed after June 1,
2025, modify the SOP such that, for SOP customers who do not make an affirmative selection at the end of the SOP term, the retail supplier must automatically transfer SOP customers to default service
Under the settlement, PECO will revise its
SOP scripts to inform customers who enroll after June 1, 2025, that enrollment in the SOP program
will operate as consent to return to default service absent an
affirmative decision to remain with the SOP supplier at the end of the term.
CAP Customer Issues, Ban On Termination Fees
The non-unanimous settlement provides that, commencing with all residential retail supplier contracts executed after
June 1, 2025, retail suppliers will not be permitted to charge early cancellation, termination, or other fees
to any shopping customer that is transitioning into PECO’s Customer Assistance Program (CAP). CAP customers may not be served by a retail supplier
The settlement provides that, when a shopping customer enrolls in CAP, PECO shall, "assist the CAP applicant with removal of the generation supplier in order to
return to default service[.]"
Furthermore, settling parties agree that, in the next default service proceeding, PECO shall propose that, for a shopping customer who submits an application to participate in CAP, the submission of the CAP application shall serve as authorization by the customer for PECO to return the CAP applicant to default service
Under the stipulation, PECO is to convene a stakeholder process to discuss modifications to its
CAP application reflecting this authorization for PECO to automatically move CAP applicants to default service upon CAP enrollment
Default Service Rates, Procurement
Under the non-unanimous stipulation, residential and small commercial default service rates will only change every 6 months (June 1 and December 1), rather than every 3 months as is current practice
In terms of default service supply procurement, the non-unanimous settlement in large part would adopt PECO's filed proposal and current practice, with the following exceptions
Most notably, PECO under the settlement is withdrawing its reserve price proposal, which would have applied to residential customer fixed price full requirements (FPFR) supply procurements
The reserve price would have served as a recommendation for the PUC to reject bids above the reserve price
See full details of the original reserve price proposal in our prior story here
The settlement provides that PECO's reserve price withdrawal, "is made
without prejudice to propose this price stability protection in future default service proceedings."
Under the stipulation, to supply residential non-shopping customers, PECO will continue to procure a mix of one-year
(approximately 38%) and two-year (approximately 61%) fixed-price full requirements (FPFR)
contracts, with six months spacing between the start of contract delivery periods.
The remaining 1% of residential default service would be supplied by PJM spot market purchases, with these spot purchases offset by a new long-term solar procurement described below
The non-unanimous settlement provides that, for residential default service, PECO shall enter 10-year solar PPAs, in an amount up to 25 MW (DC), for one or more new Pennsylvania solar projects
This solar PPA procurement replaces PECO's original proposal for an increase in solar AEC
procurements via long-term contracts
Small commercial default service (100 kW and under) would continue to be supplied by equal shares of
one-year and two-year FPFR products, procured approximately two months prior to delivery
Large C&I customers would continue to receive hourly pricing
The settlement would adopt the use of a Capacity Proxy Price (CPP) for instances in which a PJM BRA capacity price is not known at the time of a default service procurement
Docket Number P-2024-3046008
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Settlement Would Revise Customer Referral Program So That Participants Are Dropped To Default Service At End Of Term, Absent Affirmative Choice
Ban On Termination Fees For Customers Enrolling In CAP Program (Who Must Take Default Service)
Settlement Includes Less Frequent Default Service Rate Changes
July 12, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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