Press Release

PUC Approves Changes to Renewal Notice Guidelines for Electric Generation Suppliers

Published on 9/23/2010

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today finalized interim guidelines for advance notification by an electric generation supplier (EGS) of impending changes affecting customer service.

The Commission voted 5-0 to approve the revisions in order to provide customers with important information about their options prior to the expiration of their current agreements for generation supply.  The number of customers who have entered into contracts with EGSs has increased significantly in the last year with the expiration of rate caps for PPL Electric Utilities Corp. on Dec. 31, 2009. Many of those contracts expire at the end of 2010.

The amendments address two issues that the Commission felt needed to be resolved in light of the current market environment in Pennsylvania:

• The use of an estimated price to compare (PTC) on customer contract renewal notices when an actual PTC is not yet available from the electric distribution company; and
• The effect on a customer’s contract with a supplier when the customer does not respond to a contract renewal notice.  In some situations, the customer’s failure to respond resulted in the automatic renewal of the contract, often at different terms than those in the original contract.

The Commission said providing this information in renewal notices will ensure that customers will have this important information at hand to use when considering various alternatives for future electric generation supply.  Additionally, the  new guideline that was adopted  will preserve “choice” for customers who fail to respond to a renewal notice from their current supplier by providing them with the opportunity to cancel, without penalty, any resulting agreement with that supplier. 

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 website at www.puc.state.pa.us.

# # #

Docket no. M-2010-2195286

Contact:

• Press Secretary
  717-787-5722