Press Release

Pennsylvania Ranks High in National Electric Competition Report, Ongoing PUC Improvements Should Boost Future Ranking

Published on 12/17/2012

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today was named the top state for the number of electric generation suppliers making offers to residential consumers, according to the Annual Baseline Assessment of Choice in Canada and the United States (ABACCUS).

Pennsylvania maintained its No. 3 ranking (No. 2 excluding Canadian provinces) in the ABACCUS Report for having achieved significant individual residential consumer choice; having a growing number of eligible residential consumers selecting a supplier, a pricing plan, and the services they prefer; and having a growing number of diverse, innovative customer offers.    Pennsylvania ranked fourth for commercial and industrial customers. Texas ranked No. 1 in both categories.

“While we are pleased with our rankings, we also recognize that more work needs to be done,” said Commission Chairman Robert F. Powelson. “As we learned through our Retail Markets Investigation (RMI), we must make it easier for customers to shop for a competitive electric supplier.”

The report highlights that states such as Pennsylvania have made progress in retail competition by lowering barriers to entry; increasing consumer awareness and education; and increasing the number of retailers and the number and kinds of offers in the market place.

“The PUC has taken steps to make shopping for electricity easier and more attractive to consumers,” Chairman Powelson said. “We increased our education efforts to ensure customers know how to shop for electricity, created PAPowerSwitch.com, and shortened the timeframe for a customer to switch electric suppliers.  The PUC will continue to improve the quality of our competitive market and the choices being delivered to consumers, while at the same time maintaining customer protections.”

The report indicated that the following steps would improve the competitive market in Pennsylvania: reforming default service to make pricing more market reflective; making the default service price known in advance of its effective date; limiting default service pricing to basic service, thereby allowing the market to offer more choices.

The Commission is currently reviewing comments filed on its Nov. 8, 2012, tentative order that proposed changes to default service intended to encourage electric generation suppliers to invest in Pennsylvania’s retail electric market. About 30 interested parties filed comments.

“We are reviewing comments on changes that will move the Commonwealth toward a more robust competitive market, where consumers will be able to choose from a wide array of generation supply products and offerings,” Chairman Powelson said. “As we move toward finalizing changes to provide default service prices that more closely track market conditions, we look forward to working with the Governor’s Administration, the General Assembly, and other stakeholders to further advance retail electric competition in Pennsylvania.”

ABACCUS scores and rankings are based on data available in the market. ABACCUS provides a baseline for building a properly functioning competitive energy market. ABACCUS is compiled by the Distributed Energy Financial Group LLC (DEFG), a management consulting firm specializing in energy and helping clients better connect with customers. Copies of the full report are available at www.defgllc.com.

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, video and audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov.

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