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Nonunanimous Joint Settlement Filed in FirstEnergy’s Default Service Program
On July 2, 2026 a Joint Petition for Nonunanimous Settlement regarding FirstEnergy Pennsylvania Electric Company petition that was filed on February 3, 2026 seeking the Pennsylvania Public Utilities Commission (PUC) approval of its default service program for the period from June 1, 2027, to May 31, 2031.
The following entities that are signatories to the nonunanimous settlement petition include: FirstEnergy Pennsylvania Electric Company (FE PA); the Office of Consumer Advocate (OCA); the Office of Small Business Advocate (OSBA); the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania (CAUSE-P); Walmart, Inc. (Walmart); and Duquesne Light Company (DLC).
In its joint petition the parties request that the Administrative Law Judges (ALJs) approve the Settlement without modification.
FirstEnergy Pennsylvania Electric Company – Petition of FirstEnergy Pennsylvania Electric Company for Approval of Its Default Service Program for the Period from June 1, 2027, to May 31, 2031
The Briefs will be filed according to the schedule set forth in the Administrative Law Judge’s June 24, 2026 Interim Order.”
Per the interim order all briefs shall be filed by June 18, 2026.
Interstate Gas Supply, Shipley Choice filed a letter that they do not support the settlement. “Please consider this letter notice that Shipley Choice, LLC d/b/a Shipley Energy and Interstate Gas Supply, LLC d/b/a IGS Energy (“EGS Parties”) will not be filing a Statement in Support of the Settlement in the above-captioned matter. The EGS Parties oppose the settlement for reasons that will be addressed in the EGS Parties’ Main and Reply Briefs.”
Retail Energy Supply Association (RESA) and other parties have also indicated that it did not support the proposed joint settlement and may likely file a brief.
Excerpts from Joint Stipulation:
Procurement Groups:
“FE PA’s default service customers shall be divided into three classes for purposes of default service procurement: the residential class, the commercial class, and the industrial class. FE PA will maintain the same residential, commercial, and industrial class definitions that were approved by the Commission in the DSP VI proceeding, with one change. As discussed in Paragraph 36 below, the Company will classify default service customers with a peak demand or a maximum registered peak load (“MRPL”) of 100 kilowatt (“kW”) or above as industrial customers subject to the Company’s Hourly Pricing Default Service (“HP”) Rider.” [Emphasis added.]
- Classification of Non-Residential Default Service Customers – “The Joint Petitioners agree to the Company’s original proposal to introduce the MRPL into FE PA’s determination of eligibility for participation in the PTC Rider and HP Rider as set forth in the DSP VII Petition.
- Customer-generators online prior to June 1, 2027 will be exempt from the MRPL proposal until June 1, 2029 as originally proposed in the DSP VII Petition.
- For purposes of determining compensation for net excess generation for customer-generators taking service under the HP Rider, such compensation shall include capacity and line loss portions of the HP Rider until May 31, 2041, absent a material change in the capacity markets operated by PJM. In the event of such an occurrence, FE PA will notify and meet with parties to this Settlement, including Walmart, to discuss the proposed changes and their impact on customer-generator compensation at least 30 days in advance of any Commission filing.”
Supplier Coordination Tariff and Retail Shopping Changes
- The Joint Petitioners agree to FE PA’s originally proposed modifications to its supplier coordination tariff set forth in FE PA Exhibit CDL-4 in two areas: (1) protocols for EGS arrangements with customers and (2) purchase of EGS receivables.
- As shown in FE PA Exhibit CDL-4, EGSs entering into new contracts with residential customers after June 1, 2027, must return those residential customers to default service at the conclusion of the fixed duration contract term absent an affirmative choice to remain with the EGS in response to the notices required by the Commission’s regulations at 52 Pa. Code § 54.10. In addition, commencing June 1, 2027, EGSs will be required to provide an attestation of affirmative customer consent on a quarterly basis for all residential customers on variable-priced month-to-month products. [Emphasis added]
- The Joint Petitioners agree that for all contracts entered into after June 1, 2027, EGSs on utility consolidated billing must use “rate-ready” billing and charge a rate that is at or below the PTC at the time of the customer’s enrollment transaction or rate change transaction to be eligible for purchase of receivables (“POR”) for that customer account. The Company will phase out its existing clawback mechanism over the first year of the DSP VII term if its proposed POR program changes are approved by the Commission.” [Emphasis added.]
