Press Release

PUC Explores More Uniformity Among Utility Assistance Programs for Low-Income Customers Shopping for Competitive Electric Suppliers

Published on 12/21/2018

Filed under: Electric

The Pennsylvania Public Utility Commission (PUC) has approved a motion from Commissioner David W. Sweet seeking to provide more uniform retail electric shopping standards for customers participating in electric distribution companies’ (EDCs) Customer Assistance Programs (CAPs).  CAPs are intended to provide eligible low-income customers with lower monthly payments and arrearage forgiveness.

EDCs periodically submit default service plans (DSPs) to the Commission outlining their electric generation procurement processes and associated programs tied to their provision of default service for customers, including those in CAPs, who have not switched to competitive suppliers. The Commission voted 5-0 to adopt the motion, which proposes certain criteria all EDCs with CAP requirements should follow in their future DSPs to better ensure CAP customers switching to a competitive supplier do not pay higher rates for electric generation and to keep down costs ultimately paid by all customers.

Today’s motion directs the PUC’s Law Bureau to prepare a Proposed Policy Statement for the Commission’s consideration no later than Feb. 28, 2019, setting forth specific areas of uniformity in CAP shopping practices that EDCs with CAP requirements should have in future DSPs, including:

• A requirement that the CAP shopping product have a rate that is at or below the EDC’s Price to Compare (PTC) at all time periods of the contract between the EGS and the customer;

• A provision that the contract between the EGS and the CAP customer contains no early termination or cancellation fees; and

• A provision that, at the end of the contract, the CAP customer may reenroll with the EGS at a product that meets the same requirements as outlined above, switch to another EGS offering a product that meets those requirements or be returned to default service.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

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Contact:

• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov