Press Release

PUC Approves Settlement Regarding Purchase of Receivables Program for PECO Customers

Published on 6/16/2010

Filed under: Electric

HARRISBURG - The Pennsylvania Public Utility Commission today modified a settlement agreement requesting approval of a program for purchase of electric generation supplier (EGS) accounts receivables for PECO Energy Co.

The Commission voted 3-1 to approve the settlement, which established a purchase of receivables program by PECO to EGSs that choose to participate in its POR program. 

Vice Chairman Tyrone J. Christy is expected to release a dissenting statement at a later date.

Under a POR program, PECO provides certain billing and collection services on behalf of EGSs.  A POR program also ensures that an EGS is being paid for its services, and allows the distribution company to apply service termination rules to the entire bill, in the same manner that it applies its rules when PECO is supplying electric supply service.

Also under the settlement, for PECO’s residential customers, any EGS using an electric distribution company (EDC) consolidated billing will be required to utilize EDC billing for all the EGS’s residential customers, and effective Jan. 1, 2011, as PECO’s electric generation rate caps expire, a customer’s service may be terminated for failure to pay for generation service provided by an EGS.

The Commission noted that the settlement was in the public’s interest, noting that substantial litigation and associated costs would be avoided and that the settlement is consistent with Commission policies promoting negotiated settlements.

Based on previous experience with the expiration of rate caps, the PUC believes certain standards, rules, programs and operational protocols make the retail market more viable for EGSs that wish to offer retail generation service to customers.  Purchase of receivable programs is one of the key programs that helps remove barriers to competitive retail generation service entry for the small residential and commercial market. 

The settlement was reached between the Commission, PECO, the Office of Consumer Advocate, the Office of Small Business Advocate, Constellation NewEnergy, Dominion Retail Inc., the Retail Energy Supply Association and Direct Energy Services LLC.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket No. P-2009-2143607

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