PUC Video Teaches Electricity Shoppers What To Do At End Of Contracts

Public Utility Commission Commissioner Pamela A. Witmer Thursday announced a roughly two-minute video available on the PUC’s Educational Videos webpage to further educate electricity customers about what their options are at the end of their contract.

Commissioner Witmer announced the new piece during her testimony at the House Consumer Affairs Committee hearing on variable electric rates.

During January’s cold snap, some variable rate customers saw steep increases in their electric bills. This was largely due to electric generation suppliers (EGSs) passing on increased wholesale market prices.

“It appears that some customer contracts had no ceiling on the variable rate that could be charged by the EGS,” said Commissioner Witmer during her testimony. “It is important for consumers on variable rates to carefully review the terms and conditions of their contracts to determine if they are at risk for large rate increases at any given time.”

The new video can be found on the PUC website on the Educational Videos webpage, the PAPowerSwitch website’s Understanding Fixed & Variable Rates page, and on the PUC’s YouTube Channel.

The video is the second in a series of short videos highlighting key aspects of choosing and staying with a competitive supplier, and recent actions taken by the Commission to enhance the shopping experience for consumers.

The first video, released on March 20, provided information explaining the difference between fixed rates when compared to variable rates. Future videos will feature what to look for on a disclosure statement, using the sorting and filtering functionality of the online shopping tool, explaining cancellation fees and ways to save energy, among other things. PUC staff produced the video with existing Commission resources.

The video highlights the fact that before a contract ends, customers should receive two notices from their supplier – first, an Initial Notice, followed by an Options Notice. The Options Notice includes:

— Reminder of contract expiration or a summary of specific changes to the terms of service being offered;

— Information on new prices;

— An explanation of the customer’s options;

— How and when to exercise those options; and

— The telephone numbers and website addresses for the PUC as well as the Office of Consumer Advocate.

“If you choose to take an action with your renewal and options notices, your rate may change once the contract expires,” a PUC consumer educator says in the video. “For example, your current fixed rate may change to a different fixed or even a variable, month-to-month rate.”

The release of this video follows Commission actions last week, which approved two rulemakings to require EGSs to list contractual terms and conditions more prominently on bills and to accelerate the process for consumers to switch suppliers, reducing the time from 11 to 45 days to as few as three business days.

Additionally, the Commission has enhanced www.PAPowerSwitch.com and added new information related to electric shopping and fixed and variable rates.

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