|
|
|
|
|
PUC Staff Recommend Of Approval Of Broker's Application, Limited To Large C&I Service, In Claimed First (Broker Affiliated With Retail Supplier Subject To Expired Stay-out With Respect To Brokering)
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
Staff of the PUC of Ohio have recommended that the electric and natural gas broker applications of CGE Renewables LLC be approved, subject to the provision that the licenses are limited to providing service to, "large commercial and industrial customers."
As previously reported, CGE Renewables is affiliated with Palmco Power. Palmco Power and its owners were, in two separate stipulations, subject to certain stay-out periods in Ohio. In one stipulation, a five-year stay-out (which expired in July 2024) prohibited certain Palmco owners from operating any competitive retail energy "company" in Ohio (which, under the Ohio definitions, included non-LSEs brokers in addition to suppliers). A separate stipulation provided a seven-year stay-out (through 2028) only with respect to a retail "supplier", but also held that the Palmco owners would be permitted to operate a retail supplier after July 31, 2024 to the extent service was limited to large commercial and/or industrial customers
In an amended application, CGE Renewables LLC stated that, for electricity, it is seeking to serve as a broker for, "large commercial, industrial and mercantile customers". The standard electric application form does not distinguish the size of commercial customers in designating the applicant's intended authority (only listing a check box for "commercial").
For natural gas, CGE Renewables LLC in an amended application stated that it seeks to serve, "large commercial, industrial and mercantile customers". The standard natural gas application does distinguish between small and large commercial service. However, while a mercantile designation exists in the Ohio natural gas market, the standard form broker application does not list it as an option
As noted above, Staff recommends that CGE's broker applications be approved for service limited to, "large commercial and industrial customers." While Staff's narrative filing does note that CGE has stated a desire to serve mercantile customers, Staff's specific recommendation does not mention mercantile customers
While most, if not all, mercantile customers will fall within the definition of large commercial or industrial customer, it is possible under the Ohio definition of mercantile that a customer whose usage does not fall within large commercial is granted mercantile status. Specifically, in addition to meeting certain volume thresholds, an Ohio commercial customer can be designated as mercantile, regardless of usage level, due to being included in a, "national account involving multiple facilities in one or more states" (for electricity, with a similar multi-location option granting mercantile status on the gas side)
Staff found that CGE meets the requirements set forth for certification as a broker, and noted that CGE's CEO has signed the customary compliance affidavits as part of the license applications
Staff further said, "The class of customers CGE Renewables seeks to serve are typically knowledgeable energy users unlikely to be misled in decisions regarding CRES and/or CRNGS services by a broker. Brokerage services offered to commercial customers are also not subject to all the same rules that apply to energy suppliers serving residential customers."
Staff in its recommendation stated, "the Commission has not issued any CRES/CRNGS certificates that only certify the applicant to provide services to large commercial and industrial customers."
It is unclear as to Staff's specific observation here
While a specific "large commercial" designation does not exist in the electric application, this specific class is an option in the gas application. ECM has found at least one natural gas broker which, in its application which was approved in 2023, selected to serve only large commercial and industrial customers
True, the certificates from PUCO issued to suppliers and brokers, even where a supplier/broker has specifically indicated service only to large C&Is as part of the application, do not specify the customer classes (or utility service areas) to which a supplier/broker is limited
Moreover, in directing applicants to indicate the customer classes and service areas that the applicant will serve, the applications list these selections as the customers and areas that the applicant "intends" to serve, and thus such selections on the application may not be treated as binding by PUCO
In any case, Staff said, "If the Applications are approved as filed, Staff would recommend a limited certification to ensure that CGE Renewables only serves large commercial and industrial customers."
Case 24-0837-EL-CRS, 24-0836-GA-CRS
ADVERTISEMENT ADVERTISEMENT Copyright 2025 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
January 13, 2025
Email This Story
Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Manager / Director of Sales, PJM Commercial
|
|
|
|
|