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Pa. PUC Approves End Of Customer Referral Program At PPL

PUC OKs PPL Default Service Plan Which Ends Use Of 6-Month SOS Contracts For Mass Market Customers, Will Use 24-Month Contracts For 80% Of SOS

Future Collaborative To Address Retail Supplier Concerns About PPL Electric's Communications To Shopping Customers


November 7, 2024

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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com

The Pennsylvania PUC this morning adopted without modification a settlement among several major parties in the default service proceeding of PPL Electric Utilities ("PPL") in Pennsylvania which terminates PPL's standard offer customer referral program (SOP), while setting a collaborative to address concerns raised by retail suppliers relating to PPL's communications to shopping customers about choice and the customer's specific rate and supplier

As the settlement was adopted without modification, ECM's prior reporting on the settlement provides a full discussion of the adopted settlement's terms and provisions for PPL's new default service plan, DSP VI, which will run from June 1, 2025 through May 31, 2029.

See our prior story here for details on the plan approved by the PUC

In brief, the PUC has ended the standard offer customer referral program at PPL.

The SOP may not be offered during the DSP VI term, but any party may propose an SOP program for after May 31, 2029

As more fully discussed in our prior story linked above, the settlement requires that a collaborative be established, "to determine the timing, frequency, and content of PPL Electric’s written communications sent directly to shopping customers about their contracts and rates for competitive electric generation supply service."

Under the settlement, for customers eligible for PPL's Customer Assistance Program (CAP), PPL will automatically move currently shopping customers, who seek to enroll into CAP, to default service.

Customers participating in OnTrack, PPL's customer assistance program, are prohibited from shopping for a retail supplier, but, under current practice, customers seeking to move to CAP must cancel their EGS service themselves, as opposed to the automatic move to default service that will now be implemented

Under the adopted settlement, PPL will end the use of 6-month contracts for default service, and will introduce 24-month contracts, as part of the fixed price full requirements contracts used in the default service portfolio for non-hourly customers (residential and small C&I)

Under the approved settlement, 80% of the residential SOS portfolio that is served under full requirements contracts will be served by laddered 24-month contracts, after a transition period from the current portfolio

In addition to the full requirements contracts for residential customers, PPL Electric will procure 150 MW of long-term block energy-only contracts for 10-year terms for residential SOS. The 150 MW in block energy contracts represents about 15% of residential SOS load

For mass market customers, changes in the PPL Price to Compare will continue to be every 6 months

See a full discussion of the default service product portfolio, term lengths, and procurement dates in our prior story here

P-2024-3047290

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