|Order on Renewal Notice Timing for Customers Receiving Both Electric and Natural Gas Service|
The Commission issued an Order to address the disparity in timing in renewal notices for natural gas and electric service for customers receiving both services from the same competitive supplier. In the case when a customer is receiving both electric and natural gas service from the same competitive supplier and the terms for both services expire within 30 days of each other, the supplier may send two contract expiration notices that address both services. The timing of the two notices must comply with the timeframes set forth in the gas regulations — the first at 90 days and the second at 60 days. Suppliers may alternatively choose to provide the customer with four separate notices if they choose (two per the natural gas regulations and two per the electric regulations). The full text of the Order is available on the NEM Website.
|ANOPR on Automatic Adjustment Clauses for Electric Default Service|
The Commission issued an ANOPR pertaining to the interest rate applicable to both over- and under-collections resulting from the reconciliation of the electric utilities actual costs and revenue collected through automatic adjustment clauses for electric default service. Currently, the interest rates applied to utility under- and over-collections are often asymmetrical, resulting in an incentive to underproject or undercollect in order to avoid over collection penalties and to receive an interest rate higher than that which can be found in the market. The Commission proposes to, "establish a symmetrical rate of interest which will be applicable to over and under collections resulting from the reconciliation of DSPs’ costs and revenues resulting from automatic adjustment clauses related to electric default service. The proposed applicable rate of interest on over and under collections would be interest at the prime rate for commercial borrowing in effect on the last day of the month the over or under collection occurred, as reported in the Wall Street Journal. . . . This rate of interest will be computed monthly from the month the over collection or under collection occurs to the effective month that the over collection is refunded to customers or the under collection is collected from customers. Additionally, this rate of interest will apply universally to all over and under collections reconciled through the automatic adjustment clauses related to electric default service." Comments on the ANOPR are due thirty days after its publication in the PA Bulletin. The full text of the ANOPR is available on the NEM Website.