§ 54.185. Default service programs and periods of service.
(a) A DSP shall file a default service program with the Commission’s Secretary’s Bureau no later than 12 months prior to the conclusion of the currently effective default service program or Commission-approved generation rate cap for that particular EDC service territory, unless the Commission authorizes another filing date. Thereafter, the DSP shall file its programs consistent with schedules identified by the Commission.
(b) The Commission will hold hearings as necessary on the proposed plan or amended plan. If the Commission fails to issue a final order on the plan or amended plan within 9 months of the date that the plan is filed, the plan or amended plan will be deemed to be approved and the default service provider may implement the plan or amended plan as filed. Costs incurred through an approved competitive procurement plan shall be deemed to be the least cost over time.
(c) Default service programs must comply with Commission regulations pertaining to documentary filings in Chapter 1 (relating to rules of administrative practice and procedure), except when modified by this subchapter. The DSP shall serve copies of the default service program on the Pennsylvania Office of Consumer Advocate, Pennsylvania Office of Small Business Advocate, the Commission’s Office of Trial Staff, EGSs registered in the service territory and the RTO or other entity in whose control area the DSP is operating. Copies shall be provided upon request to other EGSs and shall be available at the DSP’s public internet domain.
(d) The first default service program shall be for a period of 2 to 3 years, or for a period necessary to comply with subsection (e)(4), unless another period is authorized by the Commission. Subsequent program terms will be determined by the Commission.
(e) A default service program must include the following elements:
(1) A procurement plan identifying the DSP’s electric generation supply acquisition strategy for the period of service. The procurement plan should identify the means of satisfying the minimum portfolio requirements of the Alternative Energy Portfolio Standards Act (73 P. S. § § 1648.1—1648.8) for the period of service.
(2) An implementation plan identifying the schedules and technical requirements of competitive bid solicitations and spot market energy purchases, consistent with § 54.186 (relating to default service procurement and implementation plans).
(3) A rate design plan recovering all reasonable costs of default service, including a schedule of rates, rules and conditions of default service in the form of proposed revisions to its tariff.
(4) Documentation that the program is consistent with the legal and technical requirements pertaining to the generation, sale and transmission of electricity of the RTO or other entity in whose control area the DSP is providing service. The default service procurement plan’s period of service must align with the planning period of that RTO or other entity.
(5) Contingency plans to ensure the reliable provision of default service when a wholesale generation supplier fails to meet its contractual obligations.
(6) Copies of agreements or forms to be used in the procurement of electric generation supply for default service customers. This includes all documents used as part of the implementation plan, including supplier master agreements, request for proposal documents, credit documents and confidentiality agreements. When applicable, the default service provider shall use standardized forms and agreements that have been approved by the Commission.
(7) A schedule identifying generation contracts of greater than 2 years in effect between a DSP, when it is the incumbent EDC, and retail customers in that service territory. The schedule should identify the load size and end date of the contracts. The schedule shall only be provided to the Commission and will be treated as confidential.
(f) The Commission may, following notice and opportunity to be heard, direct that some or all DSPs file joint default service programs to acquire electric generation supply for all of their default service customers. In the absence of such a directive, some or all DSPs may jointly file default service programs or coordinate the scheduling of competitive bid solicitations to acquire electric generation for all of their default service customers. A multiservice territory procurement and implementation plan must comply with § 54.186.
(g) DSPs shall include requests for waivers from the provisions of this subchapter in their default service program filings. For DSPs with less than 50,000 retail customers, the Commission will grant waivers to the extent necessary to reduce the regulatory, financial or technical burden on the DSP or to the extent otherwise in the public interest.
Source The provisions of this § 54.185 amended August 10, 2012, effective August 11, 2012, 42 Pa.B. 5185. Immediately preceding text appears at serial pages (330069) to (330071).
Cross References This section cited in 52 Pa. Code § 54.182 (relating to definitions); 52 Pa. Code § 54.186 (relating to default service procurement and implementation plans); 52 Pa. Code § 54.188 (relating to commission review of default services programs and rates); and 52 Pa. Code § 69.1803 (relating to definitions).
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