Lewis here from Omaha. Nebraska just opened up more competitive options for large customers and I'm already seeing problems with NPPD's billing for competitive supply customers. They're applying something called a 'Competitive Service Adjustment' that adds $0.0285/kWh to the delivery charges, but this isn't mentioned anywhere in the published tariffs. Customer switched from NPPD's bundled rate of $0.087/kWh to a competitive supplier at $0.065/kWh, thinking they'd save money. But with this mystery adjustment, their total cost is now $0.093/kWh - higher than before! NPPD claims it's to recover 'stranded costs' but won't provide documentation. Anyone else in Nebraska seeing this?
NPPD competitive rate shenanigans - anyone else seeing this?
Lewis, I haven't seen that specific charge with NPPD, but it sounds like a classic stranded cost recovery mechanism. Here in Lincoln with LES, we don't have full competitive choice yet, but I've heard NPPD was pushing back hard against the legislature's deregulation plans. They probably built in this adjustment to discourage switching. Did the competitive supplier not warn the customer about additional delivery charges?
Ken, that's the problem - neither NPPD nor the competitive supplier (Direct Energy) mentioned this charge during enrollment. The customer signed thinking they understood the total cost structure. I'm wondering if this violates Nebraska's consumer protection statutes or the PSC's disclosure requirements for competitive billing. The lack of transparency is really concerning, especially for a brand new market.
Lewis, this sounds similar to what we saw in other states when they first deregulated. Utilities often try to recover their 'lost' revenue through creative delivery charges. File a complaint with Nebraska PSC and request a detailed breakdown of what costs this adjustment is supposed to recover. They should have filed testimony supporting any stranded cost recovery mechanisms. Also check if the charge has a sunset date - most stranded cost riders are supposed to phase out over time.
Randy, good point about the sunset provision. I'll dig into the PSC filings from when Nebraska passed the competitive choice legislation. The charge definitely wasn't included in NPPD's initial tariff filings for competitive service. Smells like they added it after the fact without proper regulatory approval. Customer is pretty frustrated - they thought deregulation would give them more options and lower costs, not hidden fees that make them worse off.
That's exactly why I always tell customers to get a detailed bill comparison BEFORE switching, including all delivery charges and fees. The competitive suppliers love to quote just their generation rate and ignore the utility delivery portion. Lewis, keep us posted on what you find in the PSC records. If NPPD is applying unauthorized charges, that could affect a lot of customers who switched early in the program.