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OCC Proposes Capping Low Income PIPP Customer Rates At SSO Rate
The Ohio Consumers’ Counsel (OCC) filed comments recommending that the Standard Service Offer (SSO) rate be used as a price cap for electric service to Percentage of Income Payment Plan (PIPP) customers who are not allowed to shop in Ohio.
As background, on December 3, 2025 the Public Utilities Commission of Ohio (PUCO) issued an order directing all interested persons or entities wishing to file comments or reply comments with the Commission regarding the proposed rules pertaining to the Percentage of Income Payment Plan riders of Ohio electric distribution utilities do so no later than January 5, 2026, and January 20, 2026, respectively.
In its comments OCC argues that PIPP rates which exceed the SSO rate contravene the statutory provision that the PIPP auction shall, “[r]educe the cost of the percentage of income payment plan program relative to the otherwise applicable standard service offer”.
However, PUCO has previously held that this statutory provision requires that PIPP rates be lower on a “long-term” basis, and not for each rate period.
OCC said that PIPP rates set by the auction process have exceeded the SSO clearing prices by as much as 60%
The utilities as well as Constellation New Energy also submitted comments.
Of note, Constellation New Energy – stated that “[t]he proposed rule contains potentially conflicting language when the supplemental auction process would be triggered. Constellation recommends below a small, but important, revision to Proposed Rule 4901:1-44-04(D) to ensure no conflict occurs and to still allow the bidding flexibility envisioned for the supplemental auction process, which would also encourage participation in the auctions for serving the electric PIPP loads.”
“Constellation supports the initial/supplemental auction process set forth in Proposed Rule 4901:1-44-04(A). It is a format that is generally consistent with the process followed for the electric PIPP auctions today. Constellation, however, recommends Proposed Rule 4901:1-44- 04(D) be revised to recognize the possibility that the winning bids could be at any price if resulting from the supplemental auctions. The following simple revision (marked in redline) would avoid any conflicting rule language in Proposed Rule 4901:1-44-04:
(D) All RFP auction results and winning bids are subject to commission approval and will meet the following requirements: * * *
(2) Except as otherwise provided, reduce the cost of the PIPP plus program relative to the SSO.
See all comments at docket link below.
25-0823
(In the Matter of the Consideration of Rules Pertaining to the Percentage of Income Payment Plan Riders of Ohio Electric Distribution Utilities)
