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FirstEnergy Files Default Service Plan with PA PUC
FirstEnergy has filed a petition with the Pennsylvania Public Utilities Commission for the utility’s default service plan (DSP) for the period June 1, 2027 to May 31, 2031
Upon quick review the petition among other things includes:
Customer Referral Program (CRP)
“Based on the Company’s review of the data gathered during the collaborative showing declining supplier participation and a relatively low level of residential customer enrollment, FE PA is not proposing a successor CRP for DSP VII.”
Supplier Tariff And Retail Shopping Changes
To address issues arising from shopping customers paying EGS prices in excess of the PTC, FE PA is proposing modifications to its supplier coordination tariff in two areas: (1) protocols for EGS arrangements with customers and (2) purchase of EGS receivables.
“First, during the DSP VII period, FE PA proposes a new provision to require EGSs entering into new contracts with residential customers after June 1, 2027, to 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.”
Second, “for DSP VII, the Company proposes a limitation on eligibility for its POR program to incentivize EGSs to consider the impact of their pricing on a customer’s ability to pay and affordability. Specifically, for all contracts entered into after June 1, 2027, EGSs on UCB 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 POR for that customer account. EGSs that do not comply with the new pricing requirement for the Company’s POR program will be responsible for all arrearages those EGSs generate, which would substantially reduce FE PA’s and customers’ exposure to unreasonable and excessive EGS-driven write-offs. As such, the Company will phase out the clawback charge over the first year of the DSP VII term if its proposed POR program changes are approved by the Commission. Mr. Young provides more details about the new eligibility requirements and how they will be implemented in FE PA Statement No. 1.”
