News Stories
Sponsored by Earth Etch. Regulatory insight and compliance solutions for today’s energy markets.
Commission Order Rejects Petitions For Reconsideration That Called For An End To PECO’s SOP Program
Excerpts From Statement of Chairman DeFrank of the Pennsylvania Public Utilities Commission:
{***} I voted in support of modifying the proposed settlement term as a practical matter, because the term likely would have resulted in EGSs deciding not to participate in the SOP. EGS participation in the SOP is voluntary. It requires an EGS to accept several conditions, including among other requirements, offering a rate that is initially 7% below the default service rate and maintaining that rate for one year. The potential to retain the customer upon expiration of the SOP is a key element that EGSs are likely to consider when determining whether to participate in an SOP.
“PECO’s SOP appears to attract both customers and EGSs alike. Since its inception in 2013 through August 2023, the SOP has resulted in over 282,000 customer referrals to EGSs participating in the SOP. ….These numbers illustrate that PECO’s SOP, with a guaranteed discount off the default service rate at the time of enrollment, provides a desirable program where watchful consumers are able to realize savings.”
“Both OCA and TURN/Cause-PA argue … that the Commission overlooked its recent decision concerning PPL’s Default Service Program proceeding, which eliminated PPL’s SOP effective June 1, 2025. The Petitions assert that the Commission relied on maintaining program design consistency as a main reason for modifying the settlement term … for PECO’s default service program….. I disagree with these arguments.”
“However, where an electric distribution company’s SOP is viable and there is interest in continuing it – like PECO’s – it makes sense to avoid taking measures that could thwart EGS participation, such as automatically transferring customers to default service at the conclusion of the SOP.”
“For this reason, I am not persuaded by the Petitions’ assertions and the proposal to return customers to default service at the conclusion of the standard offer period.”
OPINION AND ORDER – 3046008-OSA – 1-8-25 PM – PETITION FOR RECONSIDERATION – PETITION OF PECO FOR APPROVAL DSP VI (01/08/2024)
VC BARROW STATEMENT PECO DSP 3046008-OSA (01/08/2024)
CHAIRMAN DEFRANK STATEMENT PECO 3046008 OSA.PDF (01/08/2024)
P-2024-3046008 (02/02/2024)
Electric’s (PECO) default service program for the period from 6/1/25 through 5/31/29.
