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Pennsylvania Passes 1,000,000 Customer Mark in Competitive Electricity Market

It’s official – Pennsylvania has passed the 1 million customer mark in electricity shopping.  According to the latest weekly update on the Pa. Power Switch website (www.PaPowerSwitch.com), the total number of customers switching to an electric generation supplier as of March 23, 2011, was 1,001,062.

Leading the way with the highest percentage of customers shopping is
tiny Pike County Power & Light, with 73% of its customers shopping.  Among the larger companies, PPL is out in front at 37.5%, which equates to 526,000 customers – 449,403 of whom are residential customers.  In a not too distant second place among larger companies is Duquesne, with 24.5% of its customers shopping.  This equates to 126,000 residential customers.   PECO has 16%, or 199,800 residential customers shopping, but given that its customers have been shopping for only a few months, that number is likely to grow substantially.  In all, for the majority of the Commonwealth, the numbers are quite impressive and evidence the strong support of the competitive electricity industry by the Pennsylvania Public Utility Commission and Pennsylvania’s electric distribution companies. These figures also are strong evidence for the notion that when it comes to competition in the electric and gas business, if you build a competitive market, the marketers will come.

The same momentum is not present in the natural gas markets, where switching has languished at about 200,000 total customers statewide.  The PUC has undertaken a number of regulatory initiatives that should help improve these numbers when the changes finally come on line.

Retail Energy Market Sales Practices To Be Subject Of PUC Rulemaking

In a move that reflects growing concern over door-to-door marketing of retail energy the Pennsylvania PUC is seeking  the input of industry stakeholders with an eye to adopting regulations that will curb perceived abuses.

At its February 10, 20011 Public Meeting, the PUC issued a Proposed Rulemaking Order at Docket L-2010-2208332 to establish regulations that will impose restrictions on the manner in which  retail energy marketers, particularly those who rely on door-to-door sales, interact with the public. The proposed regulations are not expected to deviate significantly from the Interim Guidelines that were issued on November 5, 2010.   Interim Guidelines on Marketing and Sales Practices for Electric Generation Suppliers and Natural Gas Suppliers; Docket No. M-2010-2185981 (Interim Guidelines). The Interim Guidelines addressed such subjects as: requiring marketing representatives to identify themselves and the company on whose behalf they are soliciting at the outset of every contact; prohibiting conduct such as misrepresenting  the terms of a proposal; and requiring that door-to-door representatives not dress in a manner that suggests they work for a utility or another marketer.  Under the Interim Guidelines, the Commission also required that sales representatives wear photo identification issued by the marketer and present customers with business cards clearly identifying on whose behalf they are marketing.  Sales representatives also were required to provide customers with written copies of any offers, terms and conditions, etc., discussed with customers orally during any sales contact and would require the marketing representatives break off any such contact immediately upon customer request.  One other important feature of the Interim Guidelines is the requirement that door-to-door sales representatives leave a customer’s home before the required third party verification process takes place.

Vice-Chairman Tyrone Christy filed a Statement in which he reiterated the position he took regarding the issuance of the Interim Guidelines,  stating that the other Commissioners were incorrect in presuming  that door-to-door sales are permissible for energy markets and suggesting that they should be outlawed altogether

The requesting comments is expected to be issued shortly.