Quick question for anyone familiar with Pennsylvania's deregulated market. I have a client who switched to a competitive supplier in PPL territory and now they're getting billed for Act 129 energy efficiency compliance costs by both the supplier and PPL. The monthly charge is about $340 from each entity, so they're being double-billed $680/month. The supplier claims this is a legitimate pass-through cost, but I thought Act 129 compliance was supposed to be handled by the distribution utility only. Can anyone clarify how these costs should be allocated in a deregulated environment?
Pennsylvania Act 129 compliance costs - who pays?
Sylvia, you're absolutely right to question this. Act 129 compliance costs should only appear on the distribution utility bill, not from competitive suppliers. The energy efficiency and demand response programs are PPL's responsibility, and customers contribute through the distribution rates regardless of their supply choice. Sounds like the supplier is trying to pull a fast one. I'd file a complaint with the Pennsylvania PUC immediately - this is a clear violation of the competitive market rules.
We don't have deregulation in Oregon, but I've seen similar issues in other states where suppliers try to pass through costs that should be handled by the utility. The key is understanding the unbundling requirements - certain public policy costs typically stay with the distribution utility to ensure they're collected fairly from all customers. Dan is right about filing with the PUC. Most state regulators take these billing violations very seriously because they undermine the integrity of the competitive market.
I deal with Duke Energy Ohio territory and we have similar energy efficiency mandates. The distribution utility handles all the compliance costs and program administration. If a competitive supplier tried to charge separately for these programs, it would be double-dipping. Sylvia, make sure to document all the bills showing the duplicate charges - the PUC will want clear evidence of the billing error. Also check if other customers of this supplier are being similarly overcharged.
Thanks everyone! I filed the PUC complaint yesterday and included copies of 6 months of bills showing the duplicate charges. Turns out this supplier has been doing this to dozens of customers. The PUC opened a formal investigation and the supplier has agreed to provide refunds while the case is pending. Total potential refund for my client is about $4,100 plus interest. Really appreciate the quick guidance from this forum.