PUC Accelerates Switching Times For Electricity Suppliers, Responding To Rate Spikes

The Public Utility Commission Thursday finalized regulation changes that dramatically reduce the time it takes customers to change electricity suppliers (Docket No. L-2014-2409383).

The Commission voted 5-0 to approve the regulations that require the electric distribution company (EDCs) to accelerate switching time frames through off-cycle meter readings that will allow consumers to switch suppliers within three business days once the EDC has been notified. EDCs are required to implement the changes within six months of the new regulations becoming final. Cost recovery for implementation would be addressed in each EDC’s next base rate proceeding.

“It’s a huge needle-mover because we want customers to be able to be portable and be able to get into new products and not be trapped in what we call the 16- to 40-day billing cycle,” said PUC Chairman Robert F. Powelson in a video news release. “At the end of the day, this is about helping consumers that are actively out there on the market shopping by giving them greater portability, greater notification of the products that they’re being served by suppliers.”

The regulations must be approved by the Independent Regulatory Review Commission, Attorney General’s Office, Senate Consumer Protection and Professional Licensure Committee and House Consumer Affairs Committee before going into effect.

The Commission launched the expedited rulemaking proceeding on March 17, 2014, by asking for comments. The Commission viewed the current time it takes for consumers to switch suppliers as unfavorable to those consumers who may wish to move away from an existing rate or onto a new rate under certain market conditions.

In February and March 2014, more than 9,137 consumers have contacted the Commission with concerns about electric supply prices, many of whom expressed frustration with the time it take to change suppliers. Of those, more than 5,732 consumers have filed informal complaints with the PUC’s Bureau of Consumer Services.

Under current regulations, it can take between 11 and 40 days to switch electric suppliers, whether changing suppliers or moving to or from the utility for electric supply. The current switching timeframes reflect changes made as a part of the PUC’s Retail Markets Investigation. Those changes reduced the switching timeframe by five days.

The PUC also finalized regulation changes Thursday adopting new electric supplier disclosure requirements for variable rate contracts.

Click Here to search for copies of documents available for Docket No. L-2014-2409383.

For more information on shopping for electricity suppliers, visit the PUC’s PA Power Switch website.

On Monday Rep. Peter J. Daley II (D-Washington), Minority Chair of the House Consumer Affairs Committee, thanked key gas utilities in Pennsylvania for delaying service shutoffs by two weeks due to significant increases in electric and gas prices over the winter.

The Senate Consumer Protection and Professional Licensure Committee held a hearing Tuesday on electricity rate spikes this winter and the variable rate pricing issues.

The House Consumer Affairs Committee has scheduled a second hearing on the variable electric rate issue for April 10.   The hearing will be held in the Gold Room, Allegheny County Courthouse, 436 Grant St., in Pittsburgh starting at 10:00.

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