Met-Ed/Penelec/Penn Power/West Penn Statement No · · 2017-10-28Met-Ed/Penelec/Penn Power/West...
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Met-Ed/Penelec/Penn Power/West Penn Statement No.7 BEFORE THE PENNSYL VANIA PUBLIC UTILITY COMMISSION METROPOLITAN EDISON COMPANY Docket No. P-2011-2273650 PENNSYLVANIA ELECTRIC COMPANY Docket No. P-2011-2273668 PENNSYLVANIA POWER COMPANY Docket No. P-2011-2273669 WEST PENN POWER COMPANY Docket No. P-2011-2273670 DEFAULT SERVICE PROGRAMS Direct Testimony of Charles V. Fullem List of Topics Addressed Status of Retail Competition Proposed Retail Market Enhancements Consisting of: (1) Removal of Non-Market Based Services Transmission Costs from the Price-To-Compare; (2) Market Adjustment Charge; (3) Act 129 Mandated Time-of-Use Rates for Penn Power and West Penn Residential Customers; (4) Opt-In Aggregation Program; and (5) Customer Referral Program
Transcript of Met-Ed/Penelec/Penn Power/West Penn Statement No · · 2017-10-28Met-Ed/Penelec/Penn Power/West...
Met-Ed/Penelec/Penn Power/West Penn Statement No.7
BEFORE THE PENNSYL VANIA PUBLIC UTILITY COMMISSION
METROPOLITAN EDISON COMPANY Docket No. P-2011-2273650
PENNSYLVANIA ELECTRIC COMPANY Docket No. P-2011-2273668
PENNSYLVANIA POWER COMPANY Docket No. P-2011-2273669
WEST PENN POWER COMPANY Docket No. P-2011-2273670
DEFAULT SERVICE PROGRAMS
Direct Testimony of
Charles V. Fullem
List of Topics Addressed
Status of Retail Competition
Proposed Retail Market Enhancements Consisting of: (1) Removal of Non-Market Based Services Transmission Costs from the Price-To-Compare; (2) Market Adjustment Charge; (3) Act 129 Mandated Time-of-Use Rates for Penn Power and
West Penn Residential Customers; (4) Opt-In Aggregation Program; and (5) Customer Referral Program
1 TESTIMONY OF CHARLES V. FULLEM
2 3 I. Introduction
4 Q. Please state your name and business address.
5 A. My name is Charles V. Fullem, and my business address is FirstEnergy, P.O. Box 16001,
6 Reading, Pennsylvania 19612-6001.
7 Q. By whom are you employed and in what capacity?
8 A. I am employed by FirstEnergy Service Company, which is a direct subsidiary of
9 FirstEnergy Corp. ("FirstEnergy"). I am the Director, Rates and Regulatory Affairs -
10 Pennsylvania. The Pennsylvania Rate Department of FirstEnergy Service Company
11 provides regulatory support for each of FirstEnergy's wholly-owned Pennsylvania
12 operating companies: Metropolitan Edison Company ("Met-Ed"), Pennsylvania Electric
13 Company ("Penelec"), Pennsylvania Power Company ("Penn Power") and West Penn
14 Power Company ("West Penn") (collectively, the "Companies"). I am responsible to the
15 Vice President of Rates & Regulatory Affairs for the development, coordination,
16 preparation and presentation of the Companies' rate-related matters before the
17 Pennsylvania Public Utility Commission ("PUC" or "Commission") and the New York
18 Public Service Commission ("NYPSC"), including the Default Service Programs, as well
19 as the preparation of statements and reports addressing, among other things, stranded cost
20 recovery, energy costs, non-utility generation ("NUG") costs, quarterly earnings, and
21 other financial matters. Also, I am responsible for administering the Companies' tariffs
22 and development of retail electric rates, rules and regulations and ensuring their uniform
23 application and interpretation.
1 2 Q. What is your educational and professional background?
3 A. I received a Bachelor of Science degree in Mineral Economics from the Pennsylvania
4 State University in November 1981. I have over twenty-nine (29) years of experience
5 with FirstEnergy and its predecessor companies. My work experience is more fully
6 described in my biography, which is attached as Appendix A.
7 Q. On whose behalf are you testifying in this proceeding?
8 A. I am testifying on behalf of Met-Ed, Penelec, Penn Power and West Penn.
9 Q. Please describe the purpose of your testimony.
10 A. The purpose of my testimony is two-fold. First, I will describe the current status of retail
11 competition in the Companies' service territories. Second, I will explain five retail
12 market enhancements that the Companies are proposing as part of their Default Service
13 Programs in this case. These consist of: (1) removing from the price-to-compare the cost
14 of Network Integration Transmission Service ("NITS"), Regional Transmission
15 Expansion Plan costs ("RTEP") and Expansion costs (collectively referred to as "Non-
16 Market Based Services Transmission Charges" or "NMB") that are imposed by the PJM
17 Interconnection LLC ("PJM"); (2) adding a Market Adjustment Charge ("MAC") to the
18 price-to-compare for the residential and commercial customer classes in order to
19 compensate the Companies for fulfilling the role of default service provider and, in that
20 way, provide additional "headroom" below the price-to-compare for competitive retail
21 offerings by electric generation suppliers ("EGSs"); (3) employing a bidding process to
22 award contracts to an EGS to provide Act 129-mandated Time-of-Use ("TOU") rates for
23 Penn Power and West Penn residential customers; (4) implementing an Electric
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Distribution Company ("EDC") - Opt-In Aggregation Program; and (5) implementing a
competitively sourced Customer Referral Program.
Are you sponsoring any exhibits?
Yes, I am sponsoring Met-Ed/PeneleciPenn PowerlWest Penn Exhibits CVF-l through
CVF-6, which I will discuss in detail later in my testimony.
Status of Retail Competition in the Companies' Service Territories
Currently, what percentage of the Companies' load is being served by EGSs?
As reflected in the December 7,2011 weekly report to the Commission, approximately
48% of the total Megawatt hours ("MWH") delivered by the Companies between January
1,2011 and December 4,2011 was supplied by EGSs. During the same period, over
87% ofthe total MWH that the Companies delivered to their industrial customers was
supplied by EGSs.
How many EGSs are registered to provide generation service in the Companies'
service territories?
The table below shows the number of registered EGSs, the number of EGSs serving load
and the number of EGSs serving residential load in the Companies' service areas. As the
data indicate, a significant number of EGSs have registered to furnish generation service
in the Companies' service areas, which reflects the low cost of entry for EGSs in the
competitive retail generation market.
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Registered EGSs
EGSs serving customers!
EGSs serving residential customers2
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Penn Power West Penn
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What have the Companies done to encourage customers to shop and to encourage
EGSs to actively pursue residential and small commercial customers in their
respective service areas?
As the Commission is aware, beginning in the second half of 20 1 0 and continuing in
2011, the Companies have had in place a customer education program that is focused on
promoting shopping and increasing customer awareness of, and access to,
PaPowerSwitch.com as a source of information and as a convenient tool for shopping for
electric generation. Additionally, pursuant to the terms of various settlements to which
they are parties, the Companies agreed to send letters to all of their residential and small
commercial customers that set forth offers from EGSs. Providing this channel for EGSs
to extend offers to residential and commercial customers reduces the EGSs' customer
acquisition costs and clearly communicates each EDC's support for customer shopping.
The table below shows the number of EGSs that participated in at least one of the first
two mailings sent to Met-Ed's and Penelec's small commercial and residential customers:
Based on latest PUC quarterly report as of September 30,2011.
Based on latest PUC quarterly report as of September 30, 2011.
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Small Commercial
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What else have the Companies done to enhance the competitive retail generation
market?
The Companies' customer service team provides the following support to EGSs that are
marketing to residential customers:
1. Between December 2010 and December 2011, Met-Ed and Penelec included
seven, and Penn Power included five, inserts about customer choice and shopping
with their residential customers' bills.
2. Applicants for new service and customers changing service that contact the
Companies' call center are advised of their ability to choose their generation
supplier. If an applicant or customer expresses any interest, the Companies send
supplier and customer choice information that explains how electricity choice
works, identifies registered EGSs, and explains how to shop for electricity and
how to enroll with an EGS.
3. By June 1, 2012, all new customer "welcome" packets will contain an insert
promoting the Commission's PAPowerSwitch.com website and the OCA's
Residential Electric Shopping Guide that is available at www.oca.state.pa.us.
4. Applicants for new service and customers changing service that apply for new or
changed service through the Companies' website, have to scroll through a script
that asks whether they are interested in obtaining supplier-related information. If
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1 a customer offers any expression of interest about shopping, the customer is
2 referred to P APowerswitch.com for a supplier list.
3 In addition, the Companies provide billing, collection and remittance processing on
4 behalf of EGSs at no cost to the EGSs, and the cost of those services is recovered in
5 distribution rates. Additionally, and consistent with the Commission's Policy Statement
6 at 52 Pa.Code Section 69.1814 endorsing such a program, each of the Companies has
7 adopted a Purchase of Receivables ("POR") program for EGSs' residential and small
8 commercial accounts. Under the Companies' POR programs, accounts receivable are
9 purchased from participating EGSs at a zero discount rate (the Companies pay the face
10 value of the account receivable), which eliminates the risk of uncollectible accounts for
11 EGSs serving residential and small commercial customers, and the costs of the POR
12 program is recovered through the Default Service Support Rider for Met-Ed, Penelec and
13 Penn Power ..
14 15 Q. How does the residential price-to-compare for the Companies compare to the
16 residential price-to-compare of other EDCs in Pennsylvania and the surrounding
17 region?
18 A. The Companies' average residential class price-to-compare for the period January 1,
19 2011 through December 1,2011 is well below the average price-to-compare of other
20 EDCs in Pennsylvania and the surrounding region, as show by the data in the table
21 below:
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The Other New Jersey New York Maryland Companies3 Pennsylvania EDCs5 EDCs6 EDCs7
EDCs4
Average "Price-to-Compare" (January 1, $0.07692 $0.094150 $0.11565 $0.08024 8 $0.09219 2011 - December 1, 2011)
What is your assessment of the state of retail competition in the Companies' service
territories?
The relatively low cost to enter the competitive retail market has encouraged significant
numbers of EGSs to register to serve, and to actually serve, substantial amounts of load in
the Companies' service areas. Indeed, in view of the fact that EGSs served over 85% of
the MWH the Companies delivered to industrial customers during the first nine months
of2011, I see no need to change the policies and practices currently in place with respect
to that customer class. With respect to the residential and small commercial classes, the
Companies already provide billing, remittance and POR services and furnish significant
marketing support, at no cost to EGSs, to promote a competitive retail market.
Consequently, few, if any, opportunities remain for EDCs to reduce the back-office costs
of EGSs. Thus, in my opinion, the focus should now be shifted to the development of
The average price-to-compare for each of the Companies is as follows: Met-Ed - $0.08659; Pene1ec$0.07363; Penn Power- $0.07533; and West Penn - $0.07214.
The "Other Pennsylvania EDCs" are Duquesne Light Company, PECO Energy Company, PPL Electric Utilities, and UGI Utilities Inc.
The "New Jersey EDCs" are Jersey Central Power & Light, Atlantic City Electric, Orange Rockland Electric, and PSE&G.
The "New York EDCs" are Central Hudson Gas & Electric Corp., Consolidated Edison Company of New York Inc., New York State Electric & Gas Corp., National Grid, Orange & Rockland Utilities Inc., and Rochester Gas & Electric Corp.
The "Maryland EDCs" are The Potomac Edison Company, Baltimore Gas & Electric, Delmarva Power & Light Company, and Potomac Electric Power Company.
New York price-to-compare excludes embedded cost transmission expenses
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new marketing channels and the commodity price area, as I will discuss later in my
testimony in connection with competitive market enhancements being proposed by the
Companies and, in particular, the implementation of a customer referral program, an
EDC opt-in aggregation program and a MAC.
Removal of Non-Market Based Services Transmission Charges from the Price-toCompare
Are the Companies proposing to remove any costs from the price-to-compare?
Yes. The Companies propose to remove NMB charges from the price-to-compare. NMB
charges consist of NITS charges, RTEP charges billed under Schedule 6 of the PJM
Operating Agreement, and P JM Expansion costs billed under Schedules 12 and 13 of the
PJM Open Access Transmission Tariff. Additionally, the Companies propose to obtain
NMB services for EGSs serving load in their service areas and to bear those costs, subject
to recovery from all customers, as explained below. In that way, neither the price-to-
compare nor prices charged by EGSs would include NMB costs.
How do the Companies propose to recover the costs of NMB?
As I explained previously, the Companies propose to provide NMB to their default
generation suppliers and to EGSs providing competitive retail service to shopping
customers. Therefore, the Companies propose to recover the costs of providing NMB
through the competitively-neutral, non-bypassable Default Service Support ("DSS")
Rider, as described in more detail by Raymond E. Valdes in Met-Ed/PeneleciPenn
Power/West Penn Statement No.2.
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Why are the Companies proposing to provide NMB to both default service
generation suppliers and to EGSs furnishing competitive retail service to shopping
customers?
Penn Power's last default service proceeding, at Docket No. P-2010-2157862, was
resolved by a settlement, which was approved by the Commission. In paragraph 47 of
the Joint Petition for Settlement in that case, the parties agreed that, beginning June 1,
2013, all RTEP charges imposed by PJM on Penn Power would be recovered through
Penn Power's DSS Rider. All NMB charges, like the RTEP charges addressed in Penn
Power's last default service settlement, are essentially embedded, cost-of-service rates
that are imposed on the basis of an EDC's total native load, regardless ofthe source of
the generation used to serve that load. Over the last several years, default suppliers and
EGSs have told the Companies that it is very difficult for them to financially hedge NMB
charges because of how those charges are calculated and imposed. Additionally, default
suppliers and EGSs made it clear that they would prefer not to procure these services and,
in that way, avoid including the corresponding costs in the wholesale and retail prices,
respectively, that they charge. By having the Companies provide NMB services and
recover the costs from all customers through a rider that imposes a reconcilable, non
bypassable charge, competitive neutrality can be maintained and all customers should
benefit. For this reason, I believe that recovering NMB costs through the DSS Rider is
appropriate and is consistent with Section 69.1807(9) of the Commission's Policy
Statement, which states that the public interest would be served by using adjustment
clauses to track and recover certain transmission costs as a way to reduce customer costs.
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Why do you view this proposal as a competitive enhancement?
Currently, the Companies do not require their wholesale suppliers to obtain and pay for
NITS as part oftheir obligation to furnish default generation supply service. Instead,
NITS is provided by the Companies and the cost is recovered in their price-to-compare.
Similarly, Penn Power and West Penn exclude RTEP costs, and West Penn excludes PJM
Expansion costs, from their respective default suppliers' obligations. Penn Power and
West Penn pay those charges to PJM and include the associated costs in their price-to
compare calculations. This approach has lowered the risk profile for default suppliers
that bid in the Companies' supply auctions because, given the difficulty with financially
hedging such costs, default suppliers would need to include in their prices a premium for
the future uncertainty of those costs. I believe that providing NMB services for both
default suppliers and EGSs serving load in the Companies' service areas and recovering
NMB charges through a competitively-neutral, non-bypassable charge will reduce costs
for both default suppliers and EGSs, assure a level playing field and provide appropriate
price signals for shopping customers.
Are you aware of other jurisdictions that exclude similar charges from the price-to
compare calculation?
Yes, the Companies' Ohio affiliates, Ohio Edison Company, Cleveland Electric
Illuminating Company, and Toledo Edison Company, recover NMB charges through a
competitively neutral, non-bypassable charge. Also, it is my understanding that the New
York EDCs provide embedded cost transmission service to shopping and non-shopping
customers and recover the costs through a competitively neutral, non-bypassable charge
as well.
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Market Adjustment Charge
Please describe the proposed MAC and how you envision it will work.
The MAC is a bypassable charge that will be imposed on non-shopping residential and
commercial customers at a rate of 5 mills per kWh ($0.005/kWh) and recovered as a cost
under the Price to Compare Default Service Rate Rider. The MAC contains a return
component that will be added to the weighted average cost of generation for default
service customers in the residential and commercial classes and included in the
reconciliation cost calculation. The MAC will compensate the Companies for the value
provided to default service customers for assuming the risks that attend the obligation to
procure electric power for customers who cannot shop or choose not to shop and will
encourage new retail suppliers to begin to offer competitive generation service in the
Companies' service territories. The proposed MAC is consistent with Section 69 .1802( a)
of the Commission's Policy Statement on default service, which states: "The goal of the
default service regulations is to bring competitive market discipline to historically
regulated markets. This can be accomplished by structuring default service in a way that
encourages the entry of new retail and wholesale suppliers." The MAC is expected to
encourage the entry of new retail suppliers by sending appropriate price signals to
customers and thus encouraging them to shop. The additional "headroom" within the
price to compare increases the likelhood that EGSs can make offers that are attractive to
customers and profitable to EGSs
To your knowledge, are there any other states that permit a return component to be
added to unbundled generation and/or default service prices?
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Yes, such a return component is authorized in Maryland, under Maryland Code Section
7-510(c)(3)(ii)(2), for service to both residential and small commercial customers. The
amount of the return component and the way it is applied were agreed upon in a
comprehensive settlement among the Maryland Public Service Commission's ("PSC")
staff, Maryland EDCs, consumer advocates, customers that intervened in the proceeding,
wholesale suppliers and retail suppliers. The settlement, including the return component,
was approved by the Maryland PSC. Additionally, the Public Utility Commission of
Texas authorizes a 20% return to be added to the cost of wholesale energy costs included
in the prices charged by companies furnishing provider-of-Iast-resort service.
Have any other states added an administrative fee to be added to the cost of
generation and/or default service prices?
Yes. New Jersey imposed a Retail Margin of $0.005 per kWh as an additional charge to
all basic generation service customers with an annual peak load of750 kW or above
between 2004 and 2010 to encourage customer switching to retail suppliers.
You previously implied that EDCs provide value to default service customers that is
not reflected in the price of default service. Please explain.
Default customers receive value from the creditworthiness of the Companies. Because
the Companies are creditworthy counterparties, suppliers are willing to enter into default
service Supplier Master Agreements ("SMAs") that do not require the Companies to
furnish collateral for the contract liabilities they assume under the SMAs. If suppliers
required the Companies to meet collateral requirements, the resulting cost would be
borne, ultimately, by default service customers. The Companies estimate that their
ability to enter into SMAs that do include collateral requirements provides a benefit to
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default service customers of one to two mills per kWh. In addition, during the current
default service period, the Companies are providing various transmission services (which
I described above). Having the EDC provide those services reduces the risk borne by
default service suppliers and provides value to the Companies' default service customers
for which the Companies are not currently being compensated. Also, since the Supplier
Master Agreements ("SMA") only hold the default service suppliers responsible for the
Alternative Energy Portfolio Standards ("AEPS") Act requirements that are in place at
the time the SMA is executed, the Companies stand ready to satisfy additional
requirements under the AEPS Act that may be imposed under legislation enacted during
the term of the SMAs. This undertaking further reduces the risks and costs borne by
default service suppliers, which provides value to default service customers for which the
Companies are not compensated. Finally, as load serving entities, the Companies must
constantly stand ready to serve load, or to procure additional supply, in the event a
default service supplier breaches its obligations under an SMA. This assurance of
continued service at transparent market-based prices by a creditworthy provider imparts
value to all default service customers.
What types of risks are imposed on the Companies by their obligation to procure
electric power for customers who cannot shop or choose not to shop?
The Companies bear the risk of increased uncollectible expense associated with both the
default service they provide and the EGS-generated accounts receivable included in the
Companies' POR programs. In addition, while the Commission and the Commonwealth
Court have affirmed the Companies' rights to full cost recovery, the reconciliation
method employed by the Commission to date, as a practical matter, can provide full
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recovery only if the Companies have default service customers from which to recover
prior period under-collections. No mechanism has been approved to recover the cost of
default service if the Companies have few or no default service customers.
How did the Companies determine the amount of the proposed MAC return
component?
The Maryland PSC has authorized an addition to the price-to-compare of approximately 2
mills per kWh. Based upon the Maryland experience, it appears that the addition of 2
mills per kWh was insufficient to promote a robust retail competitive market. The
addition made to the Texas POLR rate started out at 30% and, as of May 15, 2009, was
reduced to 20% of the wholesale energy cost. The Companies believe a MAC of 5
mills/kWh (or roughly 7% of the average price-to-compare rate for the Companies over
the first 11 months following the expiration of generation rate caps) would provide EGSs
and the Companies an opportunity to earn a return commensurate with the risks the
Companies bear and the value they create in providing default service. In so doing, the
MAC would create incentives for new retail suppliers to enter the market and would
enhance existing EGS' ability to gain market share relative to the Companies' price-to
compare default service offering.
18 Q. Why do the Companies believe that the MAC should be recognized as a cost
19 component in the price-to-compare calculation?
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Investors in a for-profit company - regulated or otherwise - expect to earn a return for
services their company provides, particularly when the contractual and regulatory
obligations are as significant as those that an EDC must assume as the default service
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provider. If any entity other than a utility were to provide default supply service to any
customer segment, it would certainly expect to earn a return for doing so. Absent the
opportunity to earn a return, such entities would not choose to provide those services
voluntarily. Simply because default service is a regulatory mandate should not absolve
the beneficiaries of that service from properly compensating the Companies for the
obligations, and attendant risks, they assume by committing their capital and credit
capacity to shoulder the long-term contractual liability of buying power on their
customers' behalf.
Is the MAC consistent with Act 129's requirement that default supplies should be
obtained in a manner that produces the lowest cost over time?
Yes. Nothing in Act 129 precludes an EDC (or other default supplier) from reflecting in
the price-to-compare all ofthe costs of providing default service. The MAC's return
component should be one of the costs included in the calculation of default service costs
because it is an actual cost being borne by the default service provider.
Why do you view this proposal as a competitive enhancement?
EOSs have contended that a price-to-compare that does not reflect all of the major cost
components borne by retail suppliers can be an impediment to the development of a
robust retail market in which BOSs can gain sufficient market share to generate
economies of scale. Without adequate "headroom" beneath the price-to-compare, it is
difficult for BOSs to offer sufficient savings to justify customers' expenditure of time and
effort to shop for electric generation service. The MAC addresses this issue by
increasing the price-to-compare to reflect a cost component, namely, a reasonable return,
that has not previously been recognized.
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As I explained before, by offering POR, billing, collection and remittance processing
services and by providing a no-cost marketing channel for EGSs, the Companies have
substantially leveled the playing field between EGSs and default service in all major
respects except one, namely, the recognition, through a return component, of the
enterprise risk borne by default service providers. The absence of this cost component
from the price-to-compare requires EGSs, who need to earn a profit to justify being in the
generation service business, to compete against a default service product being offered on
a not-for-profit basis.
Has the need to properly compensate default service providers through a return
component of the price-to-compare been addressed previously?
Yes. In comments (p. 7) submitted on June 3, 2011 in the Commission's Investigation of
Pennsylvania's Retail Electricity Market at Docket No. 1-2011-2237952, the Companies
explained that a return component is necessary and would enhance the competitive
position of EGSs:
Finally, EDCs, as a general rule, do not currently include a profit margin in the provision and pricing of default service. Assuming all other variables to be equal (such as the generation fuel source, timing ofthe generation procurement, portfolio mix, etc.), it has been suggested that an EGS may not be able to effectively compete against the default service price because there is insufficient 'headroom' ... The Companies believe the Commission should consider authorizing default service providers to include an 'adder' in their PTCs to address this issue.
Similarly, at page 12 of the Comments, the Companies explained:
The inclusion of a return adder would make a default service product comparable to a competitive offering, thereby allowing EGSs a better chance to compete. Although some may argue that
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\ the inclusion of a return adder may be inconsistent with the principle of providing 'the least cost to customers over time', it could actually work to help lower costs to customers over time since an increase in competition among EGSs will result in downward pressure on prices.
For all of the reasons I discussed above and that the Companies discussed in their June 3,
2011 comments, the MAC proposed by the Companies should be approved in this case.
Act 129 Mandated Time-of-Use Rates for Penn Power and West Penn Residential Customers
How do the Companies currently meet their obligation under Act 129 to have at
least one TOU rate available for residential customers?
Met-Ed and Penelec have legacy, optional TOU rates available for residential customers,
which are set forth in each Company's Rate Schedule RT - Residential Time-of-Day
Service. The TOU aspect of the rate design has been included in the design of
distribution rates. The availability of Rate Schedule RT satisfies Act 129's requirement
that an EDC have at least one TOU rate available for residential customers. Default
service for customers served on Rate Schedule RT is provided under Met-Ed's and
Penelec's PTC Riders, which charge a flat rate per kWh that changes quarterly; this is the
same rate available to customers on standard residential service under Rate Schedule RS.
Met-Ed and Penelec do not plan to change the rate design utilized in Rate Schedule RT
until their next distribution rate cases.
Since June 1,2011, Penn Power has offered a Residential Time of Day Option in its PTC
Rider, which is available to up to 5,000 customers that have smart meters installed
pursuant to Penn Power's Smart Meter Plan. The Penn Power Residential Time of Day
Option adjusts the current PTC rate by a fixed on-peak TOU factor and a fixed off-peak
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TaU factor to reflect time-differentiated pricing. The on-peak hours are generally 8:00
am to 8:00 pm on weekdays, and all other hours are considered off-peak hours. As of
November 30, 2011, there were no customers taking service on the Penn Power Time of
Day Option of its PTC Rider.
Effective July 28,2011, West Penn began offering a Critical Peak Rebate ("CPR")
program under Act 129 to both shopping and non-shopping residential customers that
have a smart meter installed pursuant to West Penn's Commission-approved Smart Meter
Plan. West Penn's CPR program, which is funded through West Penn's Act 129 Energy
Efficiency and Conservation Surcharge, provides participating customers a rebate of 50
cents ($0.50) for each kWh ofload they reduce during summer peak load periods. West
Penn expects to have 18,840 residential customers on its CPR program during the
summer of2012.
Have you reviewed the impact of the Penn Power Time of Day rate that was
introduced on June 1, 2011?
Yes, I have. The terms ofthe settlement of Penn Power's last default service proceeding
at Docket No. P-2010-2157862 required Penn Power to review the progress of its Time
of-Use program. However, as I previously explained, to date, none of Penn Power
customers has participated in the program. I suggest that Penn Power conduct another
study at the end ofthe next default service period to review the effects of the new TaU
rates being proposed in this case, as explained below.
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What changes are the Companies proposing to their Residential TOU offerings?
No changes are proposed to Met-Ed's and Penelec's Rate Schedule RT, which is
competitively neutral and satisfies Met-Ed's and Penelec's obligation under Act 129 to
have at least one TOU rate available to residential customers. Penn Power and West
Penn are proposing a new Residential TOU Default Service Rider, which is set forth in
Met-Ed/Penelec/Penn Power/West Penn Exhibit CVF-l and CVF-2. The Rider will be
available to residential customers that have been provided a smart meter pursuant to Penn
Power's and West Penn's respective Commission-approved Smart Meter Plans. The
Rider will be open to enrollment for up to 15,000 new customers per Company per year
during an enrollment period that runs from April 1 through May 31. After May 31, the
Rider would be closed to new applicants until the following year.
How will Penn Power and West Penn secure the generation supply and determine
the on and off-peak rates for the Residential TOU Default Service Rider?
As explained by James D. Rietzes in Met-Ed/Penelec/Penn Power/West Penn Statement
No.6, Penn Power and West Penn propose to select a Commission certified EGS to serve
customers who elect service under their Residential TOU Default Service Riders. The
EGS will be selected through an auction process to be held annually, with the winning
bidder to provide service to all customers that select the Residential TOU Default Service
Rider for up to a twelve-month period beginning with the customer's June meter reading
and ending with the May meter reading of each contract year. Penn Power and West
Penn will solicit a 12-month fixed price, on-peak and off-peak product, with on-peak
hours matching the PJM on-peak hours of7:00 am to 11 :00 pm weekdays, excluding
Company-observed holidays, and all other hours being off-peak.
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How will customers that have been provided a smart meter pursuant to Penn
Power's and West Penn's respective Commission-approved Smart Meter Plans be
notified that the TOU Default Service Rider is available?
The customer enrollment window will begin after completion of each auction and will
last two months. Non-shopping residential customers that have been provided a smart
meter pursuant to Penn Power's and West Penn's approved Smart Meter Plans will be
sent information via bill insert or a direct mailing that will provide the TOU prices
established through the auctions, as well as standard terms and conditions of service.
Customers will also be given a tear-off card bearing the return address of the winning
bidder, as well as information on how to enroll with the winning bidder by phone and/or
internet.
In addition, if a customer with a smart meter calls the Company during an enrollment
window to make a new service request or register a high bill complaint, and expresses an
interest in time-of-use rates, that customer will be referred to the winning TOU supplier.
How will customers selecting the TOU Default Service Rider be enrolled with the
EGS?
The winning bidder will be responsible for processing customer enrollments.
Enrollments must adhere to the Company's meter reading schedule and be consistent
with the switching rules of the Company's supplier tariff.
How will customers selecting the TOU Default Service Rider be billed?
The customers selecting the TOU Default Service Rider will be billed by the EDC. The
EDC will use rate-ready EDC consolidated billing. Penn Power and West Penn are
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developing the capability to bill time-of-use rates for residential customers with the on
peak and off-hours specified in the Rider. Once complete, this system will provide the
added benefit of allowing all EGSs to offer residential customers a time-of-use rate using
the same on-peak and off-peak period offered under the TOU Default Service Rider and
rate-ready EDC consolidated billing. Those EGSs that wish to offer different on-peak
and off-peak periods will be able to do so using bill-ready EDC consolidated billing.
Will the winning bidder in the auction process be required to execute a contract?
Yes. The results of the auction will be submitted to the Commission for its approval, and
the winning bidder will be required to execute a contract in the form set forth in Met
Ed/Penelec/Penn Power/West Penn Exhibit CVF-3.
Will customers opting into the TOU Default Service Rider have the ability to return
to standard default service at any time?
No. Like Penn Power's current Residential Time Of Day Option, the TOU Default
Service Rider would not allow residential customers to return to standard default service
until the next default service year (i.e. June 1 of the year following the year of
enrollment).
Will customers opting to receive service under the TOU Default Service Rider have
any shopping restrictions?
No. Like all other customers on default service, customers served under the Residential
TOU Default Service Rider will have the opportunity to switch, without penalty, to any
EGS, including the EGS that is serving as the supplier of the Residential TOU Default
Service Rider customers.
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What happens to customers that elect the TOU Default Service Rider following the
end of the current 12-month contract period?
Upon conclusion of each TOU default service year, an enrolled customer will not
automatically revert to default service. The TOU supplier must inform customers of their
right to select another EGS or return to default service prior to the conclusion of the
default service year, in accordance with the notice requirements of 52 Pa. Code §
54.5(g)(1). The TOU supplier will retain the customer unless the customer elects a
different EGS or default service and may establish new TOU prices without Commission
approval of those prices, as is the case with any other EGS rates.
Will Penn Power and West Penn provide any notice to customers that elect the TOU
Default Service Rider at the end of the 12-month contract period?
Yes. At least sixty days before their agreements with their TOU suppliers expire, the
Companies will provide notice to all customers receiving service under their Time of Use
Default Service Riders that their contract with current TOU supplier is ending. Such
notice will also provide enrollment information to enable those customers, if they choose,
to affirmatively re-enroll for service under the Time-of-Use Default Service Rider for a
subsequent twelve-month term.
Why do you view this as a competitive enhancement?
The TOU program will allow Penn Power and West Penn to offer their residential
customers a TOU product provided by an EGS chosen through an annual auction process
overseen by a neutral, third-party administrator. Thus, the Companies will provide only
standard or "plain vanilla" default service, and avoid inadvertently competing with EGSs,
because their Act 129 obligation would be satisfied by the competitive selection of an
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EGS to offer optional TOU service on their behalf. The annual competitive EGS
selection process will also assure residential customers that they are obtaining TOU
service from the lowest-cost provider each year.
The TOU program will also enhance competition because it is putting enrolled customers
in a direct contractual relationship with the EGS furnishing TOU service. Although
customers that enroll in the TOU program will be billed by the EDC using EDC
consolidated billing, TOU default service will be shown on the customer's bill as being
provided by the TOU supplier. Additionally, at the conclusion ofthe twelve-month TOU
service period, customers enrolled in the TOU program will remain customers of the EGS
unless they affirmatively elect default service or select an alternative EGS.
EDC Opt-In Aggregation Program
Are the Companies proposing an EDC opt-in Aggregation program to help increase
customer awareness for shopping opportunities, as recommended by the
Commission's Tentative Order at Docket No. 1-2011-2237952?
Yes. The Companies propose to implement a retail opt-in aggregation program
beginning June 1,2013 that would be in place for those who opt-in for a twenty-four
month term.
What customers would be eligible to participate in the retail EDC opt-in
aggregation program?
All residential customers, including those on customer assistance programs, would be
eligible to participate. Although residential customers that are already shopping for
generation service are not the target for participation, they will be eligible to participate if
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they so choose. In fact, it would be administratively very difficult to try to make
shopping customers ineligible. However, the Companies will not provide shopping
customers notice of the opt-in aggregation program. Also, cancellation fees or penalties
for terminating service with their current EGSs may be a disincentive to shopping
customers' participation in the opt-in aggregation program.
Are there any limitations on the number of residential customers that may
participate?
No. In an effort to spur as much shopping activity as possible, the Companies are not
proposing to limit the number of residential customers or the amount of load that may
participate. Additionally, the retail opt-in auction supplier will be required to accept all
residential customers that elect to participate, regardless of credit history, income level,
usage level, load factor, or location.
Why are the Companies proposing to limit eligibility to only residential customers?
Residential customers are fairly homogenous as a group and are served on rate schedules
dedicated solely to residential customers. In contrast, small commercial customers have
widely varying business usage patterns. For example, some of the largest companies in
the nation can be considered "small commercial" customers if electrical usage is a
defining criterion because telecommunication, wireless, cable and transit companies have
thousands oflow-usage connections spread throughout the Companies' service territories.
Additionally, the Companies do not have rate schedules dedicated solely to a "small
commercial" customer segment because the availability of non-residential rate schedules
is usually determined by the amount of electricity the customer uses rather than the nature
of customer's business. Therefore, due to the ambiguity regarding what mayor may not
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constitute a "small commercial" customer, the Companies do not propose to include such
customers in the retail opt-in aggregation program.
How will service be priced under the EDC opt-in aggregation program?
The Companies are seeking a "percentage-off' product because it will assure that
customers always pay less than the EDC's price-to-compare. The goal of the EDC retail
opt-in aggregation program is to benefit customers by leveraging their trust in their EDC
to help them select an EGS and, in that way, increase residential customer shopping and
raise customer awareness of the savings possible from shopping. By the same token, if
we are going to leverage the customers' trust by having the EDC form an aggregation
group, we need to take great care not to violate that trust. In that regard, the "percentage
off' product guarantees that the customers who opt-in to the aggregation program will
benefit from doing so. This attribute, which guarantees savings, will also minimize what
has been known as "regret risk", namely, customers' fear that switching from a known
supplier of default service to a new supplier could cause them to pay higher prices. We
believe that eliminating "regret risk" and providing guaranteed savings will likely
increase participation rates in the EDC retail opt-in aggregation program.
When will the EDC retail opt-in procurement auction occur?
Although the exact date has not yet been determined, the Companies propose to schedule
the auction after the January 2013 default service supply procurement but no later than
March 2013. This schedule will allow the participating EGSs to estimate the price-to
compare during the period from June 1,2013 through May 31,2015, which is critical to
formulating a percentage-off price-to-compare bid.
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Will the winning bidder in the auction process be required to execute a contract?
Yes. The results of the auction will be submitted to the Commission for its approval, and
the winning bidder will be required to execute a contract in the form set forth in Met
Ed/Penelec/Penn Power/West Penn Exhibit CVF-4.
How will customers be notified of the opt-in program?
After the highest percentage-offprice-to-compare bid (i.e., the lowest bid price) has been
determined and the results have been approved by the Commission, each Company will
notify its residential customers of their ability to opt-in to the program by means of a bill
insert or direct mailing that will contain all the necessary terms and conditions that are
necessary for a customer to make an informed decision. The terms and conditions will
indicate that the offer is only available for a 3~-day period from the date indicated on the
mailing. The bill insert or direct mailing will include a tear-off card to be returned
directly to the winning EGS for the customer to affirmatively elect the program.
Customers can also affirmatively elect the program electronically or by telephone. The
winning EGS(s) will then enroll the customer using the same enrollment protocols and
electronic transactions that are currently in place for enrolling customers in retail choice.
To the extent that the opt-in auction produces multiple winners, the Companies will
randomly generate separate mailing lists so that customers are provided the opportunity
to select one supplier.
Will customers be allowed to elect a different EGS after they enroll in the opt-in
program?
Yes, at any time during the 24-month service period of the opt-in program, a customer
may leave the opt-in program either by contracting with a different EGS or electing
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default service. Under those circumstances, the opt-in EGS would not be permitted to
charge the customer an early termination fee. However, customers will not be permitted
to return to the opt-in program if they elect a different EGS and/or default service.
What happens to customers at the conclusion of the 24-month opt-in program?
At the end of the 24-month program, the opt-in EGS must provide the notices required by
the Commission's regulations at 52 Pa.Code § 54.5(g)(l). If, after any of the required
notices are furnished, the customer does not affirmatively choose to receive service from
a different EGS or elect default service, the customer will remain with the EGS that
previously provided service under the opt-in program. At the conclusion of the 24-month
opt-in program, the opt-in EGS is free to set the price at which it will offer service to
those customers that, after receiving the required notices, remain with it.
How will the cost of the retail opt-in program be recovered?
The Companies propose to recover the costs associated with the opt-in program from all
residential distribution customers via the non-bypassable Default Service Support Rider
of each Company's respective tariff. The costs will include the cost ofthe auction
manager, the costs associated with developing the mailing of the opt-in aggregation
notification to customers, including the development of randomly developed supplier
specific mailing lists, and any costs associated with responding to customer inquiries
regarding the EDC retail aggregation program.
What happens if no EGSs participate in the opt-in auction or if the Commission
rejects any of the winning bids?
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A. In the event no EGS(s) contracts are awarded for the retail opt-in aggregation program,
either because of lack of customer participation or because the Commission rejects the
auction results, then an opt-in program will not be offered by the respective Company.
4 VII. Customer Referral Program
5 Q Why are the Companies proposing to include a customer referral program as part
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of the default service plans?
The customer referral program is consistent with Section 69.1815 of the Commission's
Policy Statement on default service, which provides: "The public interest would be
served by consideration of customer referral programs in which retail customers are
referred to EGSs". In addition, the proposed customer referral program is consistent with
the Commission's recommendation in its December 15,2011 Order on post-2013 default
service plans that EDCs include a customer referral program in their first default service
plan filed after the issuance of that Order.
If approved, how would the customer referral program work?
The Companies would conduct a Weekly Customer Referral Solicitation to select the
lowest 12-month and 24-month fixed price offers from EGSs that agree to participate in
the program and submit such offers. Residential customers that contact a Company
regarding a high bill complaint or a new service request would be advised of their ability
to purchase power from an EGS at favorable prices and offered the opportunity to have
their call transferred to a member of the Customer Referral Plan Implementation Team.
At that stage, the Customer Referral Plan Implementation Team would explain customer
choice, advise the customer where to obtain additional information to allow the customer
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to assess various offers from EGSs, and tell the customer that they can be referred to an
EGS with the lowest 12-month or 24 month fixed price products being offered that week,
and describe what those lowest offers for that week are. If a customer wants to pursue
one ofthe EGS offers, the Customer Referral Plan Implementation Team would transfer
the call to the EGS making the offer.
What customers would be eligible to participate in the customer referral program?
The customer referral program is designed for non-shopping residential customers that
contact the Companies' call centers with a new service request, questions regarding a
high bill or inquiries with respect to customer choice.
What EGSs would be eligible to participate in the referral program?
All EGSs that meet the qualifications and have executed the standard contract in the form
set forth in Met-Ed/Penelec/Penn Power/West Penn Exhibit CVF-5 would be eligible to
participate in the referral program.
14 Q. Have the Companies developed bid rules that would be used for the Weekly
15 Customer Referral Solicitation?
16 A. Yes. The Weekly Customer Referral Solicitation bid rules are set forth in Met-
17 Ed/Penelec/Penn Power/West Penn Exhibit CVF-6.
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Would small commercial customers be eligible to participate in the referral
program?
No. Small commercial customers will not be eligible for the customer referral program
for the same reasons I discussed previously for not including small commercial customers
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in the opt-in aggregation program, namely, the difficulty in identifying a "small
commercial" customer.
What information will be communicated to non-shopping residential customers that
are eligible to participate in the customer referral program?
At the conclusion of a telephone call, the Companies' customer service representatives
will advise the customer that he or she can receive service from an EGS at a reduced
price and, if the customer is willing to shop, will be transferred to the Customer Referral
Plan Implementation Team. If the customer wants the call to be transferred, the
Customer Referral Plan Implementation Team will explain customer choice, advise the
customer that a wide range of offers are available for review at
www.PaPowerSwitch.com. and inform the customer that the Company can refer them to
an EGS with the lowest 12-month or 24-month fixed price offering that has been
provided to the Company for that week, and tell the customer what those lowest prices
are. If a customer elects either the 12-month or the 24-month fixed price, the customer
will be transferred to the EGS offering the product the customer selected, and the EGS
can then proceed to enroll the customer using the same enrollment protocols and
electronic transactions that are currently in place for enrolling customers in retail choice.
If the caller is a new customer that has not yet been assigned a Company account number,
the account number will need to be established before the EGS submits the customer
enrollment.
How would the Companies determine the lowest priced 12-month and 24-month
fixed price offering?
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A.
The Companies will conduct a Weekly Customer Referral Solicitation. The Weekly
Customer Referral Solicitation will be conducted via a website created by the Companies
through which participating EOSs can submit their 12-month and 24-month fixed price
offers. Participating EOSs will have to submit their offers electronically by Friday at 2
p.m. prevailing Eastern Time. If Friday of a given week is a Company- observed holiday,
the Weekly Customer Referral Solicitation will occur on the last business day of the
week. The Company will select the lowest price offer for the 12-month period and the
24-month period, which will then be made available to customers via the referral program
during the upcoming calendar week of Sunday through Saturday. If two or more EOSs
submit the same lowest price, the Customer Referral Plan Implementation Team will
alternate customer transfers between those EOSs. Because lowest price is the only
evaluation criterion, the same EOS can provide the 12-month and 24-month product, or
each product can be provided by a different EOS during a given week. The Companies
will conduct a Weekly Customer Referral Solicitation each week throughout the term of
their default service plan (June 2013 through May 2015). If any Company does not
receive a 12-month and/or 24-month EOS offer or if the lowest offer is not below the
known price-to-compare, then the customer referral program will not be offered during
that upcoming weekly referral period.
Will EGSs that participate in the customer referral program be permitted to reject
a residential customer enrollment?
No. A qualifying term and condition for participation in the referral program is that an
EOS must accept all residential customers that are referred to it regardless of income
level, credit history, usage level, load factor, or location.
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What happens to customers at the conclusion of the 12-month or 24-month term?
The EGS must provide the notices required by the Commission's regulations at 52
Pa.Code § 54.5(g)(1). If, after any of the required notices are furnished, the customer
does not affirmatively select service from a different EGS or elect default service, the
customer will remain with the EGS that previously provided service under the referral
program. At the conclusion of the 12-month or 24-month contract between the customer
and the EGS, the EGS is free to set the price at which it will offer service to those
customers that, after receiving the required notices, remain with it.
How will the costs of the customer referral program be recovered?
The Companies propose to recover the costs associated with the referral program through
the non-bypassable Default Service Support Rider of each Company's respective tariff.
Will the referral program affect certain call center metrics that the Commission
uses to assess customer service?
If the customer referral program is implemented, the duration of customer calls will
almost certainly be extended. Because each call is expected to be longer, the number of
calls that can be taken and resolved within a given time period will likely be be reduced
and wait times would likely increase. Therefore, the Companies believe that all customer
telephone calls regarding a high bill complaint or a new service request should be
excluded from the Commission's metrics measuring the percentage of calls answered
within 30 seconds.
Does this conclude your direct testimony?
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A. Yes, it concludes my direct testimony at this time. However, 1 would like to reserve the
right to supplement my direct testimony to address any updates the Companies may
propose to their default service plans based on developments in the statewide
investigation of the retail electricity market at Docket No. 1-2011-2237952. That
proceeding is discussed in somewhat greater detail in the direct testimony of Richard A.
D' Angelo (Met-Ed/Penelec/Penn Power/West Penn Statement No 1).
33
Biography Charles V. Fullem
Director - Rates & Regulatory Affairs/Pennsylvania
Appendix A
Charles V. Fullem is Director- Rates & Regulatory Affairs/Pennsylvania, a position he was appointed to on January 22,2006. In that capacity, he is responsible for developing the default service plans of Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company and West Penn Power Company, as well as all retail tariff filings and financial reports to the Pennsylvania Public Utility Commission ("PaPUC") and the New York State Public Service Commission. He has over 28 years experience in the energy industry, with a background in rates and regulation, marketing, unregulated retail pricing and regulated tariffs, contract development and negotiations of both wholesale and retail electric service contracts.
From December 2000 through January 2006, he served in various positions, including Director of Energy Consulting Operations for The E Group, the energy consulting subsidiary of FirstEnergy Corporation ("FirstEnergy"). As Director, he managed technical staff teams and was responsible for delivering all aspects of The E Group's client services for an over one billion dollar client energy spend, including energy management, bill and rate analysis, development of energy procurement strategies, preparation of requests for proposal, evaluation of bids, contract development and implementation, open market analysis, and negotiations with suppliers and utilities and utility bill payment.
From November 1999 through December 2000, Mr. Fullem was Director, Pricing and Regulatory Affairs in FirstEnergy's rate department, where he was responsible for tariff administration and pricing programs serving over 2.2 million customers in Ohio and Perinsylvania. In this capacity, Mr. Fullem developed and implemented the unbundled tariffs designed to implement Customer Choice in Ohio, coordinated the development of FirstEnergy's Supplier Tariff and Net Metering Rider, and participated in the Operational Support Plan (OSP) workgroups. The OSP workgroups were collaborative working groups charged with establishing the various rules and policies of retail choice in Ohio.
From December 1994 through November 1999, Mr. Fullem served in various roles in First Energy's marketing department, including Director, Planning and Strategy and Director of Centerior Energy's Competitive Analysis Department, where he developed and implemented successful marketing programs targeted to commercial and industrial customers and mass market customers in competitive retail electric markets in both competitive generation markets and in traditional areas of competition between fully integrated electric utility providers.
From 1982 through December 1994, Mr. Fullem served in various roles in rates and regulation at Centerior Energy and Cleveland Electric Illuminating Company, including the roles of Director, Planning & Strategy, and Director of Rates & Contracts. In these roles, Mr. Fullem managed and performed cost of service studies, load research, customer requirements analyses, designed rates and tariffs, participated in the development of revenue requirements, and performed financial analyses.
Mr. Fullem holds his Bachelor of Science degree in Mineral Economics from the Pennsylvania State University. Mr. Fullem is a Certified Energy Procurement Professional by the Association of Energy Engineers. He has provided expert testimony before the Public Utilities Commission of Ohio ("PUCO"), the PaPUC, and the Federal Energy Regulatory Commission ("FERC").
Mr. Fullem has prepared and presented testimony in the following rate-related cases:
PUCO Cases:
Case Nos.
85-521-EL-COI
88-170-EL-AIR
88-1 71-EI-AIR
91-1528-EL-CSS
91-2308-EL-CSS
92-504-EL-CSS
95-02-EL-ABN
01-174-EL-CSS
PaPUC Cases:
Docket No.
R- 850267
Case Name
(In the Matter of the Investigation into the Perry Nuclear Power Station)
(In the Matter of the Application of the Cleveland Electric Illuminating Company for Authority to Amend and to Increase Certain of its Filed Schedules Fixing Rates and Charges for Electric Service)
(In the Matter of the Application of the Toledo Edison Company for Authority to Amend and to Increase Certain of its Filed Schedules Fixing Rates and Charges for Electric Service)
(In the Matter of the Complaint of Toledo Premium Yogurt, Inc., dba Freshens Yogurt, Complainant, v. Toledo Edison Company, Respondent)
(Board of Education, Cleveland City Schools v. Cleveland Electric Illuminating Company)
(Board of Education, Cleveland City Schools v. Cleveland Electric Illuminating Company)
(In the Matter of the Application of the City of Clyde Requesting Removal of Certain Electric Distribution Facilities of the Toledo Edison Company from Within Clyde's Corporate Limits)
(In the Matter of the Complaint of the City of Cleveland and WPS Energy Services, Inc., Complaints, v. The Cleveland Electric Illuminating Company and FirstEnergy Corp., Respondents)
Case Name
(Pennsylvania Public Utility Commission, et al. v. Pennsylvania Power Company)
2
R - 860378 (Pennsylvania Public Utility Commission, et al. v. Duquesne Light Company)
87-1160 (Duquesne Light Company and Pennsylvania Power Company, Appellants v. David M. Barasch, etc., et al.)
P-00072305 (Petition of Pennsylvania Power Company for Approval of Interim Default Service Supply Plan)
P-2008-2066692 (Voluntary Prepayment Plan)
P-2009-2093053 (Metropolitan Edison Company Default Service Programs)
P-2009-2093054 (Pennsylvania Electric Company Default Service Programs)
1-2009-2099881 (Compliance of Commonwealth of Pennsylvania with Section 410(a) of the American Recovery and Reinvestment Act 2009)
M-2009-2092222 (Petition of Metropolitan Edison Company, Pennsylvania Electric Company, and Pennsylvania Power Company for approval of its Energy Efficiency and Conservation Plans)
M-2009-2112952 (Petition of Metropolitan Edison Company, Pennsylvania Electric Company, and Pennsylvania Power Company for approval of its Energy Efficiency and Conservation Plans)
M-2009-2112956 (Petition of Metropolitan Edison Company, Pennsylvania Electric Company, & Pennsylvania Power Company for approval of its Energy Efficiency and Conservation Plans)
A-2010-2176520 (Joint Application of West Penn Power Company, Trans-Allegheny Interstate Line Company & FirstEnergy Corp.)
A-2010-2176732 (Joint Application of West Penn Power Company, Trans-Allegheny Interstate Line Company & FirstEnergy Corp.)
FERC Cases:
Docket No.
ER93 -471-000
Case Name
(COS - FERC Rate Case: Cleveland Electric Illuminating Company v. Cleveland Public Power)
3
Availability
Met-EdlPenelec/Penn Power/West Penn Default Service Plan Exhibit CVF-l
PENNSYL VANIA POWER COMPANY Time-Of-Use Default Service Rider
Time-Of-Use ("TOU") default service ("TaU Default ") is available under this rider, upon the terms and conditions set forth herein, to Residential Customers that: (1) have had smart meters installed pursuant to the Penn Power Smart Meter Technology Procurement and Installation Plan following approval of that plan by the Commission; and (2) affirmatively elect to receive service under this rider and comply with its enrollment procedures, provided, however, that enrollment will be limited to the first 15,000 qualified Customers that enroll for service under this rider during the first and each successive Enrollment Period. Customers that apply for service under this rider must agree, as a condition of service hereunder, to allow Penn Power Power to share their customer information as defined in the Penn Power Supplier Tariff with the EGS(s) that provide TOUDefault, subject to the requirements, restrictions and limitations, if any, of the Commission's applicable regulations dealing with the release of customer information.
TOUDefauIt
Qualifying Customers that are enrolled to receive service under this rider will obtain TaU default service, during the Default Service Year, from a Commission-certified EGS selected through an annual auction process ("TaU Auction"). The TaU Auction is held each year between January 1 and March 31; is overseen by an independent evaluator; and its results are approved by the Commission.
Each enrolled Customer must execute, and will receive service pursuant to, a Commission-approved consumer contract and disclosure statement with the EGS selected in the TaU Auction to furnish TaU default service during the applicable Default Service Year. The consumer contract and disclosure statement will set forth terms of service specified by the EGS that are in addition to, but may not conflict with, the rates, terms and conditions of service set forth in this rider.
The rates for TaU default service set forth in this rider are those offered by the EGS that is selected as the successful bidder in the TaU Auction for each applicable Default Service Year. Such rates shall be determined to the nearest one-thousandth of a cent per kWh and applied to each kWh of TaU default service that Penn Power Power delivers to the Customer under this rider, subject to the terms of the consumer contract and disclosure statement entered into between the Customer and the EGS.
The rates for TaU default service are different for On-Peak Hours and Off-Peak Hours. On-Peak Hours are all hours beginning 7:00 AM (0700 hours) prevailing Eastern Time and ending 11 :00 PM (1100 hours) prevailing Eastern Time each day from Monday through Friday excluding the days observed as holidays for New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Off-Peak Hours are all hours not identified as On-Peak Hours.
Enrollment Period
Met-Ed/Penelec/Penn Power/West Penn Default Service Plan Exhibit CVF-l
The Enrollment Period commences on (1) the day following the day on which the Commission approves the results of each TOU Auction or (2) April 1, whichever is the latest to occur. The Enrollment Period ends on May 31 of the same year in which such Enrollment Period began.
Default Service Year
The Default Service Year is an approximate one-year period that begins, as to any Customer, on the day of the customer's first meter reading after May 31 of the year of the customer's enrollment and ends on the day of the customer's first meter reading occurring during the calendar month of May of the following year.
Customer Switching During the Default Service Year
A Customer that has enrolled in the TOU default service program will not be eligible to return to standard default service during the Default Service Year. A Customer that has enrolled in the TOU default service program may, at any time during the Default Service Year, elect to receive service from another EGS including non-TOU default service from the EGS providing TOU default service to the Customer pursuant to this rider.
Service After the Default Service Year Ends
The Customer's enrollment for service under this rider terminates at the end of each Default Service Year for which the customer had affirmatively elected service under this rider. At the conclusion of the Default Service Year, the Customer may (1) return to standard default service by affirmatively electing to receive such service; (2) affirmatively apply for enrollment in the TOU default service program for the next Default Service Year; or (3) elect to receive service from an EGS other than the EGS that provided TOU default service during the concluded Default Service Year. If the Customer does not affirmatively elect one of the preceding three options, the Customer will remain a customer of the EGS that provided TOU default service during the Default Service Year; will cease to receive service under the terms of this rider; and will receive service from that EGS at such rates and such terms and conditions of service as may be established by that EGS.
Rates
For service rendered during the Default Service Year beginning not earlier than June 1, 2013 and ending not later than May 31, 2014, the TOUDefault rates are as follows:
On-Peak Off-Peak
Cents per kWh x.xx x.xx
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Met-Ed/Penelec/Penn Power/West Penn Default Service Plan Exhibit CVF-I
Any changes in the TOUDefault rates, including changes made pursuant to the Commission's approval of the results ofa TOU Auction, will be filed with the Commission xx days before the proposed effective date of such rate changes and will be accompanied by data and/or documents supporting the revised TOUDefaultrates.
Commission's Failure to Approve a TOU Auction or an EGS Contract and Alternative Rates
In the event Customers enroll in the TOU default service program during an Enrollment Period and, thereafter, the Commission does not approve the results of a TOU Auction or does not approve a contract between Penn Power Power and the winner of the TOU Auction for TOU default service for the applicable Default Service Year, Customers enrolled in the TOU default service program will receive service under the terms and conditions of Penn Power Power's Price To Compare Default Service Rate Rider, and the TOUDefault rates shall be the rates set forth in such Price To Compare Default Service Rate Rider (including, without limitation, "E" Factor of such rates) multiplied by 1.17701 to establish the rate that applies to each kWh of service provided during On Peak Hours and multiplied by 0.90258 to establish the rate that applies to each kWh of service provided during Off Peak Hours.
Annual Review and Audit
The application of the TOU Default rates under this rider shall be subject to annual review and audit by the Commission.
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AVAILABILITY
Met-EdiPenelec/Penn Power/West Penn Default Service Plan Exhibit CVF-2
WEST PENN POWER COMPANY TIME-OF-USE DEFAULT SERVICE RIDER
Time-Of-Use ("TOU") default service ("TOUOefault") is available under this rider, upon the terms and conditions set forth herein, to Schedule 1 0 Customers that: (1) have had smart meters installed pursuant to the West Penn Smart Meter Technology Procurement and Installation Plan following approval of that plan by the Commission; and (2) affirmatively elect to receive service under this rider and comply with its enrollment procedures, provided, however, that enrollment will be limited to the first 15,000 qualified Customers that enroll for service under this rider during the first and each successive Enrollment Period. Customers that apply for service under this rider must agree, as a condition of service hereunder, to allow West Penn Power to share their customer information as defined in the West Penn Supplier Tariff with the EGS(s) that provide TOUoefault, subject to the requirements, restrictions and limitations, if any, of the Commission's applicable regulations dealing with the release of customer information.
TOUOefault
Qualifying Customers that are enrolled to receive service under this rider will obtain TOU default service, during the Default Service Year, from a Commission-certified EGS selected through an annual auction process ("TOU Auction"). The TOU Auction is held each year between January 1 and March 31; is overseen by an independent evaluator; and its results are approved by the Commission.
Each enrolled Customer must execute, and will receive service pursuant to, a Commissionapproved consumer contract and disclosure statement with the EGS selected in the TOU Auction to furnish TOU default service during the applicable Default Service Year. The consumer contract and disclosure statement will set forth terms of service specified by the EGS that are in addition to, but may not conflict with, the rates, terms and conditions of service set forth in this rider.
The rates for TOU default service set forth in this rider are those offered by the EGS that is selected as the successful bidder in the TOU Auction for each applicable Default Service Year. Such rates shall be determined to the nearest one-thousandth of a cent per kWh and applied to each kWh ofTOU default service that West Penn Power delivers to the Customer under this rider, subject to the terms of the consumer contract and disclosure statement entered into between the Customer and the EGS.
The rates for TOU default service are different for On-Peak Hours and Off-Peak Hours. OnPeak Hours are all hours beginning 7:00 AM (0700 hours) prevailing Eastern Time and ending 11 :00 PM (1100 hours) prevailing Eastern Time each day from Monday through Friday excluding the days observed as holidays for New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Off-Peak Hours are all hours not identified as On-Peak Hours.
1
ENROLLMENT PERIOD
Met-EdlPenelec/Penn Power/West Penn Default Service Plan Exhibit CVF-2
The Enrollment Period commences on (1) the day following the day on which the Commission approves the results of each TOU Auction or (2) April 1, whichever is the latest to occur. The Enrollment Period ends on May 31 of the same year in which such Enrollment Period began.
DEFAULT SERVICE YEAR
The Default Service Year is an approximate one-year period that begins, as to any Customer, on the day of the customer's first meter reading after May 31 of the year of the customer's enrollment and ends on the day ofthe customer's first meter reading occurring during the calendar month of May of the following year.
CUSTOMER SWITCHING DURING THE DEFAULT SERVICE YEAR
A Customer that has enrolled in the TOU default service program will not be eligible to return to standard default service during the Default Service Year. A Customer that has enrolled in the TOU default service program may, at any time during the Default Service Year, elect to receive service from another EGS including non-TOU default service from the EGS providing TOU default service to the Customer pursuant to this rider.
SERVICE AFTER THE DEFAULT SERVICE YEAR ENDS
The Customer's enrollment for service under this rider terminates at the end of each Default Service Year for which the customer had affirmatively elected service under this rider. At the conclusion of the Default Service Year, the Customer may (1) return to standard default service by affirmatively electing to receive such service; (2) affirmatively apply for enrollment in the TOU default service program for the next Default Service Year; or (3) elect to receive service from an EGS other than the EGS that provided TOU default service during the concluded Default Service Year. If the Customer does not affirmatively elect one of the preceding three options, the Customer will remain a customer of the EGS that provided TOU default service during the Default Service Year; will cease to receive service under the terms of this rider; and will receive service from that EGS at such rates and such terms and conditions of service as may be established by that EGS.
RATES
For service rendered during the Default Service Year beginning not earlier than June 1,2013 and ending not later than May 31, 2014, the TOUOefaultrates are as follows:
On-Peak Off-Peak
Cents per kWh x.xx x.xx
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Met-EdlPenelec/Penn Power/West Penn Default Service Plan Exhibit CVF-2
Any changes in the TOUOefaultrates, including changes made pursuant to the Commission's approval of the results of a TOU Auction, will be filed with the Commission xx days before the proposed effective date of such rate changes and will be accompanied by data and/or documents supporting the revised TOUOefault rates.
COMMISSION'S FAILURE TO APPROVE A TOU AUCTION OR AN EGS CONTRACT AND ALTERNATIVE RATES
In the event Customers enroll in the TOU default service program during an Enrollment Period and, thereafter, the Commission does not approve the results of a TOU Auction or does not approve a contract between West Penn Power and the winner of the TOU Auction for TOU default service for the applicable Default Service Year, Customers enrolled in the TOU default service program will receive service under the terms and conditions of West Penn Power's Price To Compare Default Service Rate Rider, and the TOUOefault rates shall be the rates set forth in such Price To Compare Default Service Rate Rider (including, without limitation, "E" Factor of such rates) multiplied by 1.17701 to establish the rate that applies to each kWh of service provided during On Peak Hours and multiplied by 0.90258 to establish the rate that applies to each kWh of service provided during Off Peak Hours.
ANNUAL REVIEW AND AUDIT
The application of the TOUOefault rates under this rider shall be subject to annual review and audit by the Commission.
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Met-Ed/Penelec/Penn Powerl West Penn Power Exhibit CVF-3
Time of Use Aggregation Agreement
Residential Time of Use Customer Class Full Requirements
for
{INSERT EDC HERE}
TIME OF USE AGGREGATION AGREEMENT
THIS TIME OF USE AGGREGATION AGREEMENT ("Agreement") is
made and entered into as of {Insert Date} ("Effective Date") by and between the {Insert
EDC Name Here} ("Company"), a corporation organized and existing under the laws of
the Commonwealth of Pennsylvania and
_________________ ("TOU Supplier") a corporation
organized and existing under the laws of [State of or Commonwealth of. .... J, The
Company and the TOU Supplier hereinafter are sometimes referred to collectively as the
"Parties," or individually as a "Party."
WITNESSETH:
WHEREAS, the Company is an electric public utility engaged, inter alia, in
providing retail electric service within its service territory located in the Commonwealth
of Pennsylvania; and
WHEREAS, the Company's retail tariff includes a Time-of-Use Default Service
Rider to meet its obligation under Pennsylvania Act 129 of2008 ("Act 129") to have at
least one Time-Of-Use rate available for residential Customers; and
WHEREAS, the Pennsylvania Public Utility Commission ("PaPUC" or
"Commission") has found that it would serve the public interest for the Company to
secure a licensed Electric Generation Supplier ("EGS") to provide residential Time-of
Use Default Service pursuant to the Company's Time-of-Use Default Service Rider
through a competitive procurement process ("TOU Solicitation"), and the PaPUC has
approved such a process; and
1
WHEREAS, the Company has conducted and completed a successful TOU
Solicitation for the provision of residential Time-of-Use Default Service pursuant to the
Company's Time-of-Use Default Service Rider, and the TOU Supplier was a winning
bidder in the TOU Solicitation; and
WHEREAS, the TOU Supplier is licensed by the PaPUC to offer and supply
competitive retail electric service in Pennsylvania.
NOW, THEREFORE, in consideration of the mutual covenants and
promises set forth below, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally
bound, hereby covenant, promise and agree as follows:
Article 1: Definitions
Any capitalized or abbreviated term not elsewhere defined in this Agreement shall have the definition set forth in this Article.
1.1 Agreement - This Agreement for the TOU Supplier to provide default service to TOU Customers and Appendices attached hereto.
1.2 Applicable Legal Authorities - Those federal and Pennsylvania statutes and administrative rules, regulations and Orders that govern the electric utility industry in Pennsylvania, as they may be amended from time to time.
1.3 Business Day - Any day on which the Company's corporate offices are open for business.
1.4 Consolidated EDC Billing - Shall have the meaning set forth in the Company's Electric Generation Supplier Coordination Tariff as filed with the PaPUC and available on the Company's website.
1.5 Customer - Any person or entity who enters a contractual agreement with the Company to receive retail electric service including, without limitation, all persons or entities taking service under a retail tariff that are eligible to receive competitive electricity supply from an EGS or Default Service in accordance with the Applicable Legal Authorities.
1.6 Default Service - Shall mean Default Service as defined in 52 Pa. Code § 54.182
1.7 Default Service Year - The period beginning with the first scheduled meter read date on or after June 1 st of a year through the last scheduled meter read date
2
occurring no later than May 31 sl of the succeeding year, but in no event prior to the date of execution of this agreement.
1.8 Electric Distribution Company or "EDC" - A public utility providing facilities for the transmission and distribution of electricity to retail Customers in Pennsylvania subject to the jurisdiction of the Commission.
1.9 Electric Generation Supplier or "EGS" - A person or entity that is certified by the Commission to offer and provide competitive retail electric service to retail Customers located in the Commonwealth of Pennsylvania.
1.10 Enrollment Period - The sixty (60) days from April 1 through May 31 of each year, during which time a Residential Customer may enroll for service under the Time of Use Default Service Rider.
1.11 FERC - The Federal Energy Regulatory Commission.
1.12 P JM - P JM Interconnection, LLC
1.13 Purchasing Agent - The EDC for the TOU Customer.
1.14 Rate Schedule(s) - The Customer rate schedule(s) in the electric service tariff of the Company on file with the Commission as they may be modified from time to time.
1.15 Rate Ready - Shall have the meaning set forth the Company's Electric Generation Supplier Coordination Tariff as filed with the PaPUC and available on the Company's website.
1.16 Seller - The TOU Supplier.
1.17 Service Territory - The service territory in which the Company is authorized to furnish retail electric service in Pennsylvania.
1.18 Supplier Tariff - The PaPUC-approved Supplier Coordination Tariff for the Company.
1.19 TOU - Time of Use.
1.20 TOU Customer(s) - Retail Customers who are provided default service pursuant to the terms of the Company's Time-Of-Use Default Service Rider in the Company's Retail Electric Service Tariff as filed with the PaPUC and available on the Company's website.
1.21 TOU Fixed On- Peak Price - The price, in cents per kWh, set forth in the Company's Time-Of-Use Default Service Rider and Appendix A.
1.22 TOU Fixed Off- Peak Price - The price, in cents per kWh, set forth in the Company's Time-Of-Use Default Service Rider and Appendix A.
1.23 TOU Solicitation - The competitive bidding processes, procedures and rules employed by the Company with the Commission's approval to competitively select an EGS to provide Time-of-Use Default Service under the terms of the Time-Of-Use Default Service Rider to TOU Customer(s) for purposes of this Agreement.
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1.24 TOU Supplier - An entity that: (i) has been selected through the TOU Solicitation and has accepted the obligations and associated rights to provide Time-of-Use Default Service on behalf of the Company for retail Customers in accordance with the Applicable Legal Authorities; (ii) has entered into this Agreement with the Company as a Party; (iii) is a full member ofPJM and registered with PJM as a Load Serving Entity; (iv) is licensed by the PaPUC to offer and supply electric generation services in Pennsylvania; and, (v) is in full compliance with the terms and conditions of the Company's Electric Generation Supplier Coordination Tariff.
1.25 TOU Supplier Representative - Any officer, director, employee, consultant, contractor, or other agent or representative ofthe TOU Supplier having actual or apparent authority to act on behalf of the TOU Supplier in connection with TOU Supplier's performance under this Agreement. To the extent the TOU Supplier is a division or group of a company, the term "TOU Supplier Representative" excludes any person in that company who is not a part ofthe TOU Supplier's division or group and is specifically limited to any person in that company who is a part of the TOU Supplier's division or group.
Article 2 General Terms and Conditions
2.1 Term
This Agreement shall be effective upon execution by the Parties with the approval
by the PaPUC and shall terminate with the last scheduled TOU Customer meter read date
occurring no later than May 31 st of {Enter End of Default Service Year Here}. This
Agreement may be terminated prior to the initial one year term by the existence of any of
the following conditions: (1) if the TOU program is terminated by governmental action
before the end ofthe Default Service Period; (2) ifthe TOU Supplier is no longer a
certified EGS; (3) if either Party is in material breach ofthis Agreement or the Supplier
Tariff; or, (4) pursuant to Article 3 of this Agreement.
2.2 Supplier Tariff
Except as otherwise stated herein, all terms and conditions of the Company's
Supplier Tariff, as modified from time to time with the approval ofthe PaPUC, are
4
incorporated herein by reference, are in full force and effect, and are binding upon the
parties for the duration of this Agreement.
2.2 Purchase Agent Obligations and Authority
Purchasing Agent for the TOU Customers, as defined by this Agreement shall::
(a) Have a Time-of-Use Default Service Rider that has been approved by the
PaPUC effective June 1, 2013;
(b) Bill TOU Customers on behalf of the TOU Supplier under Rate Ready
Consolidated EDC Billing utilizing the on-peak and off-peak rates specified in Appendix
A-,
(c) Notify all non-shopping residential Customers that have been provided a smart
meter pursuant to the Company's PaPUC-approved smart meter plans, via bill insert or
direct mailing, of the availability of the Time-of-Use Default Service Rider. Such notice
will provide the TOU Fixed On-Peak Price, the TOU Fixed Off-Peak Price, standard
terms and conditions of service, information related to the TOU Supplier, and how to
enroll for service under the Time-of-Use Default Service Rider;
(d) Assign all eligible Customer accounts to Seller, with the requisite Customer
consent, consistent with the Supplier Tariff;
(e) Limit the availability ofthe Time-of-Use Default Service Rider to the first
15,000 residential Customers that enroll under the Time-of-Use Default Service Rider
during the Open Enrollment Period unless the Seller exercises its option to serve
additional customers as provided in Section 2.6;
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(f) Refer Customers with a smart meter that, during the enrollment period,
contact the Company to make a new service request or register a high bill complaint and
express an interest in time-of-use rates to the TOU Supplier;
(g) Provide written notice no more than 60 days prior to the expiration of a Time
of Use Aggregation Agreement to all Customers receiving service under the Time-of Use
Default Service Rider that the contract with the TOU Supplier would be ending and, as
part of such notice, providing enrollment information for the Customer to affirmatively
re-enroll for service under the Time-of-Use Default Service Rider for a subsequent 12-
month term;
(h) Secure PaPUC approval designating Seller as the TOU Supplier for the period
June 1, xxxx to May 31, xxxx.
2.3 Obligations of the TOU Supplier
The TOU Supplier shall:
(a) Provide Competitive Energy Supply (as defined in the Supplier Tariff) to TOU
Customers, consistent with the Company's Time-of-Use Default Service Rider, under the
terms and conditions of service set forth in Appendix B;
(b) Meet all of the obligations and requirements of a PaPUC-licensed EGS under
the then-current Supplier Tariff;
(c) Cooperate with the Company in any regulatory compliance efforts that may
be required to maintain the ongoing validity and enforceability of the terms of this
Agreement and the Time-Of-Use Default Service Rider in the Company's retail electric
service tariff, and fulfill any regulatory reporting requirement associated with the
6
provision ofTOU Supply before the PaPUC, FERC or any other regulatory body
asserting jurisdiction;
(d) Utilize EDC Rate Ready Consolidated Billing to bill TOU Customers the
TOU rates set forth in Appendix A and in the Company's Time-Of-Use Default Service
Rider; and
(e) Process TOU Customer enrollments, adhere to the Company's meter reading
schedule, and comply with the switching rules in the Supplier Tariff.
2.4 No Guarantee ofTOU Customers
Both Parties acknowledge that the Company's Time-Of-Use Default Service
Rider is only available to Customers in the Company's Service Territory that are in the
Residential Class, that have smart metering installed in accordance with the terms of the
Company's Smart Meter Technology Procurement and Installation Plan, and that
affirmatively elect TOU Default Service during the Enrollment Period. The Company
makes no guarantee or representation as to: (1) the number of residential Customers, if
any, that will have smart metering installed during the term of this Agreement; or, (2) the
number of residential Customers, if any, with smart metering installed that may enroll for
service under the Time-Of-Use Default Service Rider during the Enrollment Period.
2.5 Fees, Penalties, and Exceptions
Customers will be billed in accordance with the rates, terms and conditions of the
Time-of-Use Default Service Rider in the Company's retail electric service tariff. TOU
Suppliers will be paid by the Company pursuant to rates included in Appendix A and the
terms and conditions of the Supplier Tariff. TOU Supplier will not impose any additional
7
penalties or fees on TOU Customers other than those included in the Company's Time
Of-Use Default Service Rider or Appendix B to this Agreement.
2.6 Obligation to Accept Additional Customers
The TOU Supplier will accept up to 15,000 Customers into the TOU Program
who enroll during the open Enrollment Period. The TOU Supplier may, solely at its own
option, provide written notice to Purchasing Agent ofTOU Supplier's willingness to
accept more than 15,000 Customers and/or to accept Customers after the Enrollment
Period.
2.7 Guaranteed Power Supply to TOU Customers for One Year
All TOU Customers enrolled in the TOU program shall receive power at the rates
set forth in Appendix A, from the TOU Customer's initial meter read date during the
Default Service Year and ending with the last TOU Customer meter read date of the
Default Service Year.
2.8 Future Pricing
Upon conclusion of each TOU Default Service Year, an enrolled TOU Customer
will not automatically revert to Default Service. The TOU Supplier must inform
Customers of their right to select another EGS or return to Default Service prior to the
conclusion ofthe service period, in accordance with the notice requirements of 52 Pa.
Code § 54.5(g)(1). The TOU Supplier will retain the Customer unless the Customer
elects a different EGS or Default Service. If the TOU Supplier retains the Customer, the
TOU Supplier may establish new TOU prices, without Commission approval of those
prices, in the same manner as any other EGS rates.
8
2.9 Enrollment Procedures and Policies
TOU Customers can enroll or switch to an EGS, including an alternative offer
from the TOU Supplier, at any time during the Default Service Year without restriction
or penalty.
2.10 Service Inquiries and Notices to TOU Customers
TOU Customers may direct inquiries regarding this Agreement, and any power
supply or billing questions regarding the Time-Of-Use Default Service Rider, to the
Company, at the phone number which shall be provided in all TOU Program
communications with TOU Customers ..
Article 3 Early Termination of Agreement
The TOU Supplier may only terminate its Consumer Contract and Disclosure
Statement with TOU Customers in accordance with the terms and conditions in the form
of Consumer Contract and Disclosure Statement set forth in Appendix B.
Article 4 Energy Efficiency and Conservation Programs
TOU Supplier acknowledges that TOU Customers may participate in energy
efficiency and conservation programs offered by the Company (as required by Applicable
Legal Authorities or otherwise), by P JM, or by other third parties, and that such
participation may reduce or change the amount ofTOU Supply that TOU Supplier is
required to provide and, therefore, the amount of money it may receive under this
Agreement. TOU Supply does not include the load which TOU Supplier may have
served in the absence of such programs, and the Company shall have no obligation
whatsoever to TOU Supplier with respect to the effect, if any, of such programs. TOU
9
Supplier is solely responsible for determining the effect, if any, of such programs on
future load requirements.
Article 5 Entire Agreement
This Agreement and Appendices constitute the entire Agreement and
understanding between the Parties with respect to the services that are to be provided
hereunder. All prior written and verbal agreements and representations, if any, with
respect to these services are merged into and superseded by this Agreement. No
revisions or modifications to this Agreement will be valid, unless written and executed by
all Parties and approved by the PaPUC.
Article 6 Authorization
Each Party to this Agreement represents and warrants that it has full and complete
authority to enter into and perform this Agreement. This includes Purchasing Agent's
warranty that it has the authority to enter into the Agreement and is not bound to any
special contract or other commitment which will prevent the Purchasing Agent from
discharging its obligations under this Agreement as of the commencement date. Each
person who executes this Agreement on behalf of either Party represents and warrants
that he or she has full and complete authority to do so and that such Party will be bound
by the Agreement.
Article 7 Jurisdiction
Any and all matters of dispute between the Parties, whenever arising, shall be
governed, construed and enforced in accordance with the laws ofthe Commonwealth of
Pennsylvania regardless of the theory upon which such matter is asserted.
10
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed by their duly authorized representatives to be effective as of the day and year
first written above.
ATTEST: {INSERT EDC NAME HERE}
By: ______________________ By: ____________________ __
Name: [Insert Name] Title: [Insert Tille]
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Name: [Itlsert Name] Title: [IIls~rt Titl~]
APPENDIX A
TIME OF USE PRICING
For service rendered xx/xx/xx to xx/xx/xx
TOU ON-PEAK Price
TOU OFF-PEAK Price
X.XX cents per kWh
X.XX cents per kWh
APPENDIXB
TIME OF USE AGGREGATION AGREEMENT
{INSERT EGS NAME HERE} CONSUMER CONTRACT AND DISCLOSURE STATEMENT OF
TERMS OF PENNSYLVANIA RESIDENTIAL ELECTRIC GENERATION SERVICE
LICENSE NUMBER {Insert EGS License Number here}
Purchase of Power and Energy Service
("{INSERT EGS Name HERE}") agrees to sell, and you agree to buy, your full requirements for Time of Use Default Service for residential electric generation service at the price and on the terms and conditions specified in this Consumer Contract and Disclosure Statement (the "Contract"). Price and other terms of this Contract are subject to change as provided below. {INSERT EGS Name HERE} reserves the right to revoke its electricity offer for any reason at any time prior to your acceptance ofthis Contract. Throughout this Contract, the words "you" and "your" refer to the Customer who has signed this Contract. The words "we", "us" and "our" refer to {INSERT EGS Name HERE}. {INSERT EGS Name HERE} represents and warrants that it is an independent seller of electric generation service licensed by the Pennsylvania Public Utility Commission ("PaPUC") and is representing or acting on behalf of the Electric Distribution Company ("EDC") responsible for the service territory where you reside, e.g., West Penn Power Company or Pennsylvania Power Company (each referred to as the "Electric Distribution Company" or "EDC"). {Insert EGS Name Here} is not representing or acting on behalf of any governmental bodies, or consumer groups. You will receive written notification from the EDC confirming a pending switch of your electric generation supply.
Term
The initial term of the Contract will be up to 12 months based on your election, beginning on the starting date that is the next meter read date after the EDC processes your enrollment (the "Starting Date"). Your switch to {INSERT EGS Name HERE} will commence with the next available meter reading following the Right of Recission Period.
Guarantee Period
You may terminate this Contract without incurring an early termination fee at any time by selecting another Electric Generation Service Provider. To do so, you must also notify us in writing or by calling our customer care center at {insert EGS 800 number here}. Upon your termination of this Contract, we will transfer your residential electric generation service to be supplied by the EGS of your choice at your next available meter
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read date and you will remain responsible for payment for electricity and related costs and charges incurred under this Contract through such meter read date.
Fixed Pricing
By choosing the TOU Plan your price for electric generation service will be x.xx cents on-peak and x.xx cents off-peak from the Starting Date through the meter read date at the end of the Default Service Year. This fixed price includes generation charges (as defined below), market based transmission charges (defined below) and all Independent System Operator charges (defined below) and gross receipt taxes. This fixed price does not include distribution charges (as defined below) or other EDC charges including nonmarket based transmission charges (which will be invoiced by the EDC), applicable state or local sales or other taxes, nor any other governmental taxes or assessments, all of which will be passed through and invoiced to you in addition to the fixed price.
Key Pricing Definitions
"Distribution charges" are part of the basic service charges on every Customer's bill for the physical delivery of electricity from the EDC to your horne. The PUC regulates distribution prices and services. This charge will vary according to how much electricity you use.
"Generation charges" are charges that represent the cost of producing the electricity and are specific to this Contract. Generation prices and charges are set by the electric generation supplier you have chosen, which is {INSERT EGS Name HERE}. This charge will vary according to how much electricity you use.
"Independent System Operator charges" are charges for services necessary to support the transmission of electric power from seller to purchaser given the obligations of control areas and transmitting utilities within those control areas to maintain reliable operations of the interconnected transmission system
"Market Based Transmission & Ancillary Service charges" are charges that represent the market based costs oftransporting electricity from the source of supply to the EDC. This charge will vary with your source of supply. The Federal Energy Regulatory Commission regulates transmission prices and services.
"Non-Market Based Transmission Charges" are part of the basic service charges on every Customer's bill for delivering electricity from the EDC to your horne. These services include Non Market Based Charges which consist of Network Integrated Transmission Charges ("NITS") charges, Regional Transmission Expansion Plan Costs ("RTEP") charges billed under Schedule 6 of the P JM Operating Agreement, and P JM Expansion costs billed under Schedule 12 and 13 of the PJM Open Access Transmission Tariff. NITS, RTEPs and PJM Expansion Costs are billed by the Independent System Operator.
"On-Peak Hours" are the hours from 7:00 a.m. to 11 :00 p.m. weekdays.
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"Off-Peak Hours" are the hours from 11 :00 p.m. to 7:00 a.m. weekdays and all hours during weekends and recognized holidays observed for New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
"Price-to-Compare" is the rate, in cents per kWh, representing the Company's costs to provide Default Service to a Customer.
Other Pricing Terms
The price charged for electric generation and market based transmission service under this Contract is reflective of competitive market conditions, was not set or approved by the PaPUC and does not include any applicable taxes (other than gross receipts taxes) or local distribution company fees or charges, which will be charged by the EDC. Based on the information provided by you during your signup, this address is your personal residence, vacation home or residential rental property or you are the parent or guardian for the person residing here, and you are paying the EDC bill. Accordingly, under current applicable laws, we are not required to assess sales taxes on our charges under this Contract. There is no charge for entering into this Contract or for terminating this Contract at the end of the then applicable Contract term as provided in the "Term" and "Renewal" sections.
Right of Rescission
You may cancel this Contract at any time before midnight of the third business day after receiving this disclosure by either notifying us in writing at the address provided below or by phone by calling us at {insert EGS 800 number here} that you would like to rescind this Contract.
Price Comparison
Because the EDC's tariff rates and other factors relevant to the EDC's current Price-ToCompare likely will change from time to time, {INSERT EGS Name HERE} cannot guarantee savings over the EDC's rates for the entire term of this Contract or any renewals and any savings are limited to a comparison against the EDC's Price-ToCompare applicable at the time you enter into this Contract.
Net Metering
If you currently own or plan to install during the term of this Contract solar, wind, or other eligible renewable electrical generating facilities in order to supply all or part of your electricity usage and such generating facility is or will be net metered by the EDC you must notify us in order for us to determine your eligibility and to properly enroll or continue to serve you.
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Renewal
THIS CONTRACT WILL AUTOMATICALLY RENEW AS DESCRIBED IN THIS SECTION. IN ORDER TO CANCEL BEFORE AN AUTOMATIC RENEWAL OF THIS CONTRACT, PLEASE NOTIFY US IN WRITING OR BY PHONE AS DESCRIBED IN THIS SECTION.
Unless tenninated earlier as provided in the "Tennination" section, if you have a fixed tenn agreement with us and it is approaching the expiration date, you will receive two written notifications ("contract renewal notices") from us that precede either the expiration date or the effective date of the proposed changes, as the case may be. We will explain your options to you in these two contract renewal notices. The first of these notices will occur between 52 and 90 days prior to the expiration date of the Contract or the effective date of the proposed Contract change; the second of these notices will occur at least 45 days prior to the Contract's expiration or the effective date ofthe proposed Contract change. The second contract renewal notice will set forth the proposed price for the renewal tenn, the proposed length of the renewal tenn, the bill cycle in which service under the new tenn will begin and any other proposed changes to the tenns and conditions of this Contract.
UNLESS YOU NOTIFY US THAT YOU DON'T WANT TO RENEW THIS CONTRACT IN WRITING OR BY CALLING US AT {insert EGS 800 number here}. NO LATER THAN 30 DAYS AFTER THE DATE YOU RECEIVE THE SECOND CONTRACT RENEWAL NOTICE, YOU WILL BE DEEMED TO HAVE IRREVOCABLY AND UNCONDITIONALLY AGREED TO RENEW THIS CONTRACT ON THE TERMS AND CONDITIONS SET FORTH IN THE RENEWAL NOTICE. YOU MAY, HOWEVER, TERMINATE THE CONTRACT DURING ANY RENEWAL PERIOD AT ANY TIME WITHOUT INCURRING AN EARLY TERMINATION FEE, AT WHICH TIME WE WOULD RETURN YOUR ACCOUNT AT THE NEXT APPLICABLE METER READ DATE TO BEING SUPPLIED BY THE EDC UNLESS YOU HAVE SELECTED ANOTHER ELECTRIC GENERATION SUPPLIER.
Initiation of Service
THE PURPOSE OF THIS DOCUMENT IS TO AUTHORIZE {INSERT EGS NAME HERE} TO CHANGE YOUR ELECTRIC GENERATION SERVICE SUPPLIER AND, BY ENTERING INTO THIS CONTRACT, YOU AUTHORIZE {INSERT EGS Name HERE} TO UNDERTAKE WHATEVER STEPS NECESSARY TO ACCOMPLISH YOUR SWITCH. {INSERT EGS Name HERE} will begin providing electric generation service to you on the next applicable meter read date after the EGS processes your enrollment and your service will continue throughout the tenn of this Contract. The EDC will notify you of the date on which your electric generation service from {INSERT EGS Name HERE} will begin. {INSERT EGS Name HERE} 's electric generation service will be delivered to your residence using the EDC's electricity distribution wires. You represent and warrant that the electricity supply being purchased under this Contract is to
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be used solely for residential purposes. {INSERT EGS Name HERE} 's obligations under this Contract are conditioned on you providing complete and accurate information and on you remaining a EDC distribution Customer throughout the term under the applicable residential electric rate class.
Billing and Payment
The cost of your electric generation service will be included on your bill from the EDC, and is due and payable when your EDC bill is due at the billing address provided in your EDC bill. You acknowledge that the EDC may provide us with your billing and payment information. You will be invoiced for {INSERT EGS Name HERE} , s charges under this Contract at the applicable price set forth in the "Fixed Pricing" section above (or, during any renewal period, under any revised price, terms and conditions as may be established as described in the "Renewal" section above) multiplied by your electricity usage as measured by the EDC in kWh during the applicable billing period. You agree to accept the measurements as determined by the EDC for purposes of accounting for the amount of power and energy services provided by us under this Contract. If the EDC is unable to read your meter, the EDC will estimate your usage and your charges will be calculated accordingly and adjusted on a future bill. Supplying you under this Contract is conditioned on the EDC accepting our enrollment of your account and your continued eligibility for consolidated billing by the EDC. If you are not eligible for consolidated billing, you need to remedy that restriction with the EDC before we can serve you. Should the EDC cease providing consolidated billing for your account and/or commence billing us for any charges relating to you, we will bill you and you will pay us for all such charges. You will be billed additional charges, including taxes and charges to distribute the electricity to your home, from the EDC consistent with its filed tariffs. You are responsible for paying any new or increased taxes, fees or other charges imposed on us or you in connection with our supply of electricity to you during the term of this Contract. {INSERT EGS Name HERE} reserves the right to change billing methods, upon the completion of the term of this Contract. If we change our billing methods, we will send you two (2) advance written notices either in your bills or in separate mailing before the effective date of any such change.
Equal Payment Plan
The EDC is offering an Equal Payment Plan for our electric generation service charges. You may elect the Equal Payment Plan at any time by contacting the EDC's customer service department as long as you are not past due on your payments and are eligible for EDC consolidated billing. The Equal Payment Plan is calculated by estimating your Delivery Service Charges and electric generation service charges for a twelve (12) month period. A payment of approximately one-twelfth (1/12) of such estimate shall be rendered monthly by the EDC, subject to a monthly historical review by the EDC which may result in a change in the equal payment monthly amount to be paid by the Customer. The EDC will true up your account based on your actual charges upon termination of service or if you wish to discontinue Equal Payment Plan. For more information or to
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signup for the Equal Payment Plan, contactjhe EDC customer service center at the number shown below.
Late or Insufficient Payment
When the EDC issues you a consolidated bill, all invoiced balances under this Contract that are not paid in full by the due date will be subject to the EDC's late payment policies and procedures, including imposition of late fees, interest and other charges as described in the EDC's filed tariff(s) pursuant to the terms ofthe Company's Time-of-Use Default Service Rider. In addition, the EDC will have the ability to terminate service to a Customer for the Customer's non-payment of either EGS Basic Electric Supply charges or EDC charges.
Credit
In the event that the EDC does not continue to purchase the right to receive your payments during the term of this contract, {INSERT EGS Name HERE} reserves the right to determine if your credit standing is satisfactory for originating or continuing electric generation service under this Contract. Consistent with applicable law, {INSERT EGS Name HERE} uses uniform income, deposit and credit requirements in determining whether to offer service to our Customers. You hereby authorize {INSERT EGS Name HERE} to perform a credit check on you if the EDC does not continue to purchase the right to receive your payments.
Termination
{INSERT EGS Name HERE} may terminate this Contract for any breach of this Contract upon 30 days' prior written notice to you of such termination. If you fail to cure within the 30 day notice period, we may terminate the Contract even if you subsequently cure the breach after such period has expired. {INSERT EGS Name HERE} may also terminate this Contract upon 30 days' prior written notice to you due to a change in law or other act beyond our reasonable control or if we are no longer able to serve you. In addition, we reserve the right to reject your enrollment or terminate this Contract if:
• you move within or outside ofthe EDC's service territory or you fail to remain a EDC distribution Customer throughout the term under the applicable residential electric rate class;
• you fail to be eligible for EDC consolidated billing throughout the term; • you rescind your authorization for release of information provided in the
"Information Release Authorization" section below; or, • you provide any false, inaccurate or misleading information to {INSERT EGS
Name HERE} or the EDC.
YOU MAY TERMINATE THIS CONTRACT PRIOR TO THE END OF THE APPLICABLE TERM FOR YOUR CONVENIENCE BY GIVING US NOT LESS THAN 30 DAYS' PRIOR WRITTEN NOTICE.
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Upon any tennination of this Contract, you will need to select another electric generation supplier. The effective date of any tennination will be the next applicable meter read date after expiration of the required notice period. Upon any tennination, you will remain responsible for all obligations, including payment for electricity and related costs and charges incurred under this Contract prior to the effective date of tennination. The delivery of electricity to you cannot be tenninated or interrupted by the EDC as a result of any dispute between {INSERT EGS Name HERE} and you but may be tenninated by the EDC for nonpayment of EDC charges in accordance with applicable law. The EDC will continue to respond to any service calls and emergencies and switching to {INSERT EGS Name HERE} will not impact your electric service reliability. Because the EDC purchases the right to receive your payments under this Contract, your payment obligations under this Contract are EDC charges for purposes of tennination of service.
Assignment, Address Change
{INSERT EGS Name HERE} may assign, subcontract or delegate all or any part of our rights and/or obligations under this Contract, including your payment obligations under this Contract, without notice or your consent in accordance with the rules and regulations of the PaPUC. You may not assign any of your rights or obligations under this Contract without our prior written consent. If you move, you may tenninate our Contract. You will be responsible for paying for all electricity supplied to your old address until the date this Contract is tenninated in accordance with its tenns. If you move within the EDC's service territory, you must contact the EDC at the number provided in the "Contact Information" section below in order to obtain new account and meter numbers for your new residence. Please contact us if you would like us to serve you again at your new location.
Change in Pricing and Other Terms
In addition to {INSERT EGS Name HERE} 's right to revise the price, tenns and conditions of this Contract as provided in the "Renewal" section above, this Contract may be revised at any time by {INSERT EGS Name HERE} upon the occurrence of any event beyond its reasonable control that materially increases the obligations of {INSERT EGS Name HERE} or the cost ofperfonning such obligations under this Contract. If you have a fixed tenn agreement with us and it is approaching the expiration date or whenever we propose to change the tenns of service in this Contract, you will receive two written notifications from us in corresponding separate mailings that precede either the expiration date or the effective date of the proposed changes. We will explain your options to you in these two advance notifications. The first of these notices will occur between 52 and 90 days prior to the expiration date of the Contract or the effective date of the proposed Contract change; the second of these notices will occur at least 45 days prior to the Contract's expiration or the effective date of the proposed Contract change. You will have an opportunity to tenninate this Contract without any further obligation by notifying us in writing within 30 days after the date of the second notice of the new prices and/or tenns and conditions, in which case your electric generation service will tenninate
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effective as of the next meter read date after expiration of the required notice period. You will remain responsible for any unpaid balance as of the termination date.
Information Release Authorization
Throughout the term, you authorize {INSERT EGS Name HERE} to obtain information from the EDC that includes, but is not limited to, account name, account number, billing address, service address, telephone number, standard offer service type, historical and future electricity usage, rate classification, meter readings, characteristics of electricity service and, when charges hereunder are included on your EDC bill, billing and payment information from the EDC. You authorize {INSERT EGS Name HERE} to release such information to third parties that need to know such information in connection with your power and energy service and to {INSERT EGS Name HERE} 's affiliates and subcontractors. These authorizations will remain in effect as long as this Contract is in effect. You may rescind these authorizations at any time by either calling or providing written notice to us. We reserve the right to the extent permitted by law to reject your enrollment or terminate this Contract in the event these authorizations are rescinded.
Dispute Resolution
If you have a billing or other dispute involving our service, please contact us at {insert EGS 800 number here}. You must still pay your bill in full, but may deduct the specific amount in dispute while the charges remain in dispute. You may call the PaPUC if you are not satisfied after discussing the terms with us at 1-888-PUC-FACT or 1-800-782-1100 from 8:00 am to 5:00 pm weekdays or in writing at P.O. Box 3265, Harrisburg, PA 17105-3265.
Limitation of Liability; Jury Trial Waiver
You agree that neither {INSERT EGS Name HERE} nor any of its affiliates or subcontractors will be liable for any damages or claims for matters within the control of the EDC or the ISO controlled electricity grid, which include maintenance of electric lines and systems, service interruptions, loss or termination of service, deterioration of electric services, meter readings or injury to persons or damage to property caused by the delivery or supply of electricity. Neither {INSERT EGS Name HERE} nor any of its affiliates or subcontractors will be responsible for any failure to commence or terminate power and energy service on the date specified herein due to any failure or delay in enrolling you with the EDC. {INSERT EGS Name HERE} 's liability will be limited to direct actual damages only, which will not exceed the amount of your single largest monthly invoice during the preceding 12 months. In no event will {INSERT EGS Name HERE} or any of its affiliates or subcontractors be liable for any punitive, incidental, consequential, exemplary, indirect, third-party claims or other damages whether based on contract, warranty, tort, negligence, strict liability or otherwise, or for lost profits arising from any breach or nonperformance of this Contract. BOTH YOU AND {INSERT EGS NAME HERE} AGREE IRREVOCABLY AND UNCONDITIONALLY TO WAIVE ANY RIGHT TO A TRIAL BY JURY OR TO INITIATE OR BECOME A PARTY TO
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ANY CLASS ACTION CLAIMS IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS CONTRACT OR THE TRANSACTIONS CONTEMPLATED BY THIS CONTRACT.
Force Majeure
We do not transmit or deliver electricity and causes and events out of our reasonable control ("Force Majeure Events") may result in interruptions in service. We will not be liable for any such interruptions or any other failure to perform under this Contract caused by a Force Majeure Event. We are not and will not be liable for damages caused by Force Majeure Events, including but not limited to acts of God; acts of any governmental authority; accidents; strikes; labor disputes; required maintenance work; inability to access the EDC's system; nonperformance by the EDC, including, but not limited to, a facility outage on its distribution lines; changes in laws, rules or regulations of any governmental authority; or any cause beyond our reasonable control.
Miscellaneous
Except with respect to {INSERT EGS Name HERE} 's affiliates and subcontractors under the "Limitation of Liability; Jury Trial Waiver" section, there are no third party beneficiaries of this Contract. Any payments due under this Contract, and all provisions relating to the payment and collection thereof, and the provisions contained in the "Limitation of Liability; Jury Trial Waiver" section above, will survive expiration or termination for any reason. This Contract constitutes the entire agreement between you and {INSERT EGS Name HERE}. No statement, promise or inducement made by either party not contained in this Contract will be valid or binding. Any reference to days or periods will mean calendar days.
Contact Information
{INSERT EGS Name HERE} RESIDENTIAL LICENSE NUMBER IS {Inserrt EGS license number here}
Should you have any questions about your {INSERT EGS Name HERE} contract or {INSERT EGS Name HERE} charges on your invoice, please contact us between the hours of 8:00 a.m. and 8:00 p.m. eastern time on weekdays, except holidays. Our toll-free number is {INSERT EGS 800 number HERE}. We can be reached by email at: {INSERT EGS WEB-SITE HERE} or by mail at: { INSERT EGS Mailing ADDRESS here}. Please contact us at this address to provide all notices under this Contract and contact us at this address or phone number to resolve any disputes regarding this Contract. For emergencies relating to your service, such as a power outage, or for information about universal service programs, please call your EDC at the following number:
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West Penn Power Company at 1-800-255-3443, or Pennsylvania Power Company at 1-888-544-4877
The Pennsylvania Utility Commission can be reached by mail at P.O. Box 3265, Harrisburg, PA 171053265, or by phone at 18006927380 and their website address is http://www.puc.state.pa.us/. You may contact the PUC if after discussing with us you are not satisfied with these terms and conditions.
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Met-Ed!PeneleciPenn Power! West Penn Power Exhibit CVF-4
Customer Opt-In Aggregation Agreement
Residential Customer Class Full Requirements for
[Insert EDC Here]
OPT-IN AGGREGATION AGREEMENT
THIS OPT-IN AGGREGATION AGREEMENT ("Agreement") is made and
entered into as of {Insert Date} ("Effective Date") by and between {Insert EDC N arne
Here}("Company"), a corporation organized and existing under the laws of the
Commonwealth of Pennsylvania and _________ ("Opt-In Aggregation
Supplier"), a corporation organized and existing under the laws of {Insert State or
Commonwealth Here}. The Company and the Opt-In Aggregation Supplier hereinafter
are sometimes referred to collectively as the "Parties," or individually as a "Party."
WITNESSETH:
WHEREAS, the Company is an electric public utility engaged, inter alia, in
providing retail electric service within its service territory located in the Commonwealth
of Pennsylvania; and
WHEREAS, the Pennsylvania Public Utility Commission ("PaPUC" or
"Commission") has found that it would serve the public interest for the Company to
secure a licensed Electric Generation Supplier (EGS) to provide Opt-In Aggregation
Retail Customer Supply pursuant to this Agreement through a competitive procurement
process ("Opt-In Aggregation Solicitation"), and the PaPUC has approved such a
process; and
WHEREAS, the Company has conducted and completed a successful Opt-In
Aggregation Solicitation for the provision of residential electric generation service
pursuant to this Opt-In Aggregation Agreement, and the Opt-In Aggregation Supplier
was a winning bidder in the Opt-In Aggregation Solicitation;
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WHEREAS, the Opt-In Aggregation Supplier is licensed by the PaPUC to offer
and supply competitive retail electric service in Pennsylvania.
NOW, THEREFORE, in consideration of the mutual covenants and
promises set forth below, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally
bound, hereby covenant, promise and agree as follows:
Article 1. Definitions
Any capitalized or abbreviated term not elsewhere defined in this Agreement shall have the definition set forth in this Article.
1.1 Agreement - This Agreement for the Opt-In Aggregation Supplier to provide residential electric generation service to Opt-In Aggregation Customers and Appendices attached hereto.
1.2 Applicable Legal Authorities - Those federal and Pennsylvania statutes and administrative rules and regulations, and Orders that govern the electric utility industry in Pennsylvania, as they may be amended from time to time.
1.3 Business Day - Any day on which the Company's corporate offices are open for business.
1.4 Consolidated EDC Billing - Shall have the meaning set forth in the Company's Electric Generation Supplier Coordination Tariff as filed with the PaPUC and available on the Company's website.
1.5 Customer - Any person or entity that enters a contractual agreement with the Companies to receive retail electric service including, without limitation, all persons or entities taking service under a retail tariffthat is eligible to receive competitive electricity supply from an EGS or Default Service in accordance with the Applicable Legal Authorities.
1.6 Default Service - Shall mean Default Service as defined in 52 Pa. Code § 54.182.
1.7 Electric Distribution Company or "EDC" - A public utility providing facilities for the transmission and distribution of electricity to retail Customers in Pennsylvania subject to the jurisdiction of the Commission.
1.8 Electric Generation Supplier or "EGS" - A person or entity that is duly certified by the Commission to offer and provide competitive retail electric service to retail Customers located in the Commonwealth of Pennsylvania.
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1.9 Enrollment Period - The sixty (60) days from April 1 through May 31 of2013 during which a Residential Customer may enroll in the Opt-In Aggregation Program.
1.10 FERC - The Federal Energy Regulatory Commission.
1.11 Opt-In Aggregation Customer(s) - Retail Opt-In aggregation Customers who are provided residential electric generation service pursuant to the terms of this Agreement.
1.12 Opt-In Aggregation Solicitation - The competitive bidding processes, procedures and rules employed by the Company to competitively select an EGS to provide residential electric generation service to Opt-In Aggregation Customers under the terms of this Agreement.
1.13 Opt-In Aggregation Supplier - An entity that: (i) has been selected through the Opt-In Aggregation Solicitation and has accepted the obligations and associated rights to provide residential electric generation service to Opt-In Aggregation Customers on behalf of the Company for retail Customers in accordance with the Applicable Legal Authorities; (ii) has entered into this Agreement with the Company as a Party; (iii) is a full member ofPJM and registered with PJM as a Load Serving Entity; (iv) is licensed by the PaPUC to offer and supply electric generation service in Pennsylvania; and, (v) is in full compliance with the terms and conditions of the Company's Supplier Tariff.
1.14 Opt-In Aggregation Supplier Representative - Any officer, director, employee, consultant, contractor, or other agent or representative of the Opt-In Aggregation Supplier having actual or apparent authority to act on behalf of the Opt-In Aggregation Supplier in connection with the Opt-In Aggregation Supplier's performance under this Agreement. To the extent the Opt-In Aggregation Supplier is a division or group of a company, the term Opt-In Aggregation Supplier Representative does not include any person in that company who is not part of the Opt-In Aggregation Supplier's division or group.
1.15 Opt-In Percentage Off Fixed Price - The percentage off the Price-To-Compare per kWh as set forth in Appendix A.
1.16 P JM - P JM Interconnection, LLC.
1.17 Price-to-Compare - Shall have the meaning set forth in Appendix A.
1.18 Purchasing Agent - The EDC that interfaces with the winning Opt- In Aggregation Supplier to affect the Opt-In Supply to enrolled Customers.
1.19 Rate Schedule(s) - The Customer rate schedule(s) in the electric service tariff of the Company on file with the Commission as they may be modified from time to time.
1.20 Rate Ready - Shall have the meaning set forth in the Company's Electric Generation Supplier Coordination Tariff as filed with the PaPUC and available on the Company's website.
1.21 Seller - The Opt-In Aggregation Supplier.
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1.22 Service Territory - The service territory of the Company in which the Company is authorized to furnish retail electric service in Pennsylvania.
1.23 Supplier Tariff - The PaPUC-approved Electric Generation Supplier Coordination Tariff for the Company.
Article 2 General Terms and Conditions
2.1 Term
This Agreement shall be effective upon execution by the Parties with the approval
of the PaPUC and shall terminate with the last scheduled Opt-In Customer meter read
date occurring no later than May 31, 2015. This Agreement may be terminated prior to
the expiration of its term set forth above by the existence of any of the following
conditions: (1) if the Opt-In Aggregation Program is terminated by governmental action
before May 31,2015; (2) if the Opt-In Aggregation Supplier is no longer a certified EGS;
(3) if either Party is in material breach of this Agreement or the Supplier Tariff; or, (4)
pursuant to Article 3 of this Agreement.
2.2 Supplier Tariff
Except as otherwise stated herein, all the terms and conditions ofthe Company's
Supplier Tariff, as filed with the PaPUC and available on the Company's website, and as
modified from time to time with the approval ofthe PaPUC, are incorporated herein by
reference, are in full force and effect, and are binding upon the Parties for the duration of
this Agreement.
2.2 Purchase Agent Obligations and Authority
Purchasing Agent for the Opt-In Customers, as defined by this Agreement shall:
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(a) Bill the Opt-In Customers on behalf of the Opt-In Aggregation Supplier under
Rate Ready Consolidated EDC Billing utilizing the Opt-In Percentage Off Fixed Price set
forth in Appendix A;
(b) Notify all non-shopping Residential Customers, via bill insert or direct
mailing, of the availability of the Opt-In Aggregation Program. (Such notice will provide
the Opt-In Percentage Off Fixed Price, standard terms and conditions of service, and
information related to the Opt-In Aggregation Supplier and how to enroll for service in
the Opt-In Aggregation Program;
(c) Assign to the Opt-in Aggregation Supplier all eligible Customer accounts
enrolled by the Opt-in Aggregation Supplier, with the requisite Customer consent,
consistent with the Company's Supplier Tariff as filed with the PaPUC and available on
the Company's website; and
(d) Secure PaPUC approval to implement an Opt-in Aggregation Program and
Solicitation and designate Seller as the Opt-In Aggregation Supplier for the period June
1,2013 to May 31,2015.
2.3 Obligations of the Opt-In Aggregation Supplier
The Opt-In Aggregation Supplier shall:
(a) Provide Competitive Energy Supply (as defined in the Company's Supplier
Tariff) to Opt-In Customers consistent with this Agreement and pursuant to the terms and
conditions of service set forth in Appendix B;
(b) Meet all of the obligations and requirement of a PaPUC-licensed EGS under
the then-current Supplier Tariff;
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(c) Cooperate, at its own expense, with the Company in any regulatory
compliance efforts that may be required to maintain the ongoing validity and
enforceability ofthe terms of this Agreement, and fulfill any regulatory reporting
requirement associated with the provision of the Opt-In Aggregation Supply, before the
PaPUC, FERC or any other regulatory body asserting jurisdiction;
(d) Utilize EDC Rate Ready Consolidated Billing to bill Opt-In Customers the
Opt-In Percentage Off Fix Price set forth in Appendix A; and
(e) Process Opt-In Customer enrollments, adhere to the Company's meter reading
schedule and comply with the switching rules in the Supplier Tariff.
2.4 No Guarantee of Opt-In Customers
Both Parties acknowledge that the Company's Opt-In Aggregation Program is
only available to Customers in the Company's Service Territory that are classified in the
Residential Class and that affirmatively elect residential electric generation service during
the Enrollment Period from the Opt-In Aggregation Supplier. The Company makes no
guarantee or representation as to the number of Residential Customers, if any, that will
enroll in the Opt-In Aggregation Program during the Enrollment Period.
2.5 Fees, Penalties, and Exceptions
Customers participating in the Opt-in Aggregation Program will be billed at the
Opt-In Percentage Off Fixed Price set forth in Appendix A in accordance with the terms
and conditions set forth in Appendix B. Opt-In Aggregation Suppliers will be paid by the
Companies pursuant to the Opt-In Percentage-Off rates included in Appendix A and the
terms and conditions of the Supplier Tariff. Opt-In Aggregation Supplier will not
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impose any penalties or fees on Opt-In Customers other than those included in the
Company's Price To Compare Default Service Rider and Appendix B.
2.6 Guaranteed Power Supply to Opt-In Customers for Two Years
All Opt-In Customers enrolled in the Opt-In Aggregation Program shall receive
power at the Opt-In Percentage Off Fixed Price set forth in Appendix A from the Opt-In
Aggregation Customer's initial meter read date and ending with the Opt-In Aggregation
Customer's last meter read date of the Opt-In Term.
2.7 Enrollment Procedures and Policies
Opt-In Aggregation Customers can enroll or switch to an EGS, including an
alternative offer from the Opt-In Aggregation Supplier, at any time during the Opt-In
Aggregation Term without restriction or penalty.
2.8 Service Inquiries and Notices to Opt-In Customers
Opt-In Customers may direct inquiries regarding this Agreement and any power
supply or billing questions regarding the Opt-In Aggregation Program to the Opt-In
Aggregation Supplier, whose address and phone number shall be provided in all
communications with Opt-In Customers regarding the Opt-In Aggregation Program.
Article 3 Early Termination of Agreement
The Opt-In Aggregation Supplier may only terminate its Consumer Contract and
Disclosure Statement with Opt-In Aggregation Customers in accordance with the terms
and conditions in the form of Consumer Contract and Disclosure Statement set forth in
Appendix B.
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Article 4 Energy Efficiency and Conservation Programs
Opt-In Aggregation Supplier acknowledges that Opt-In Aggregation Customers
may participate in energy efficiency and conservation programs offered by the Company
(as required by Applicable Legal Authorities or otherwise), by PJM, or by other third
parties, and that such participation may reduce or change the amount of Opt-In
Aggregation Supply that Opt-In Aggregation Supplier is required to provide and,
therefore, the amount of monies it may receive under this Agreement. Opt-In
Aggregation Supply does not include the load which Opt-In Aggregation Supplier may
have served in the absence of such programs, and the Company shall have no obligation
whatsoever to Opt-In Aggregation Supplier with respect to the effect, if any, of such
programs. Opt-In Aggregation Supplier is solely responsible for determining the effect,
if any, of such programs on future load requirements.
Article 5 Entire Agreement
This Agreement and Appendices attached hereto constitute the entire Agreement
and understanding between the Parties with respect to the services that are being provided
hereunder. All prior written and verbal agreements and representations, if any, with
respect to these services are merged into and superseded by this Agreement. No
revisions or modifications to this Agreement will be valid, unless written and executed by
all Parties and approved by the PaPDC.
Article 6 Authorization
Each Party to this Agreement represents and warrants that it has full and complete
authority to enter into and perform this Agreement. Each person who executes this
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Agreement on behalf of either Party represents and warrants that he or she has full and
complete authority to do so and that such Party will be bound by the Agreement.
Article 7 Jurisdiction
Any and all matters of dispute between the Parties, whenever arising, shall be
governed, construed and enforced in accordance with the laws of the Commonwealth of
Pennsylvania regardless of the theory upon which such matter is asserted.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed by their duly authorized representatives to be effective as of the day and year
first written above.
ATTEST: [Insert EDC Name Here]
By: By: ----------------------- -----------------------
Name: [Insert Name] Title: [Insert Title]
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Name: rh1sertName] Title: [Insert Title]
APPENDIX A
OPT-IN PERCENTAGE OFF FIXED PRICE
For service rendered 6/112013 to 5/3112013
Percentage Off Discount x.xx % Price To Compare*
* Price to Compare ("PTC") shall equal the rates set forth in the Company's Price To Compare Rider in effect during the billing period. The PTC will not include any State Tax Adjustment Surcharge ("STAS").
APPENDIXB
OPT-IN AGGREGATION AGREEMENT
{INSERT EGS NAME HERE} CONSUMER CONTRACT AND DISCLOSURE STATEMENT OF
TERMS OF PENNSYLVANIA RESIDENTIAL ELECTRIC GENERATION SERVICE
LICENSE NUMBER {Insert EGS License Number here}
Purchase of Power and Energy Service
("{INSERT EGS Name HERE}") agrees to sell, and you agree to buy, your full requirements for residential electric generation service at the price and on the terms and conditions specified in this Consumer Contract and Disclosure Statement (the "Contract"). Price and other terms of this Contract are subject to change as provided below. {INSERT EGS Name HERE} reserves the right to revoke its electricity offer for any reason at any time prior to your acceptance of this Contract. Throughout this Contract, the words "you" and "your" refer to the Customer who has signed this Contract. The words "we", "us" and "our" refer to {INSERT EGS Name HERE}. {INSERT EGS Name HERE} represents and warrants that it is an independent seller of electric generation service licensed by the Pennsylvania Public Utility Commission ("PUC") and is not representing or acting on behalf of the Electric Distribution Companies ("EDC") responsible for the service territory where you reside, e.g. Metropolitan Edison Company, Pennsylvania Electric Company, West Penn Power Company or Pennsylvania Power Company (each referred to as the "Electric Distribution Companies" or "EDC"), any governmental bodies, or consumer groups. You will receive written notification from the EDC confirming a pending switch of your electric generation supply.
Term
The term of the Contract will be up to 24 months, beginning on the starting date that is the next meter read date after the EDC processes your enrollment (the "Starting Date") and ending with your last meter read date in May of2015. Your switch to {INSERT EGS Name HERE} will commence with the next available meter reading following the Right of Rescission Period.
Guarantee Period
You may terminate this Contract without incurring an early termination fee at any time by selecting another Electric Generation Service Provider or returning to Default Service with the EDC. To do so, you must also notify us in writing or by calling our customer care center at {insert EGS 800 number here}. Upon your termination of this Contract, we will transfer your residential electric generation service to be supplied by the EGS of your choice or your EDC at your next available meter read date and you will remain
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responsible for payment for electricity and related costs and charges incurred under this Contract through such meter read date.
Percentage off Fixed Price
By choosing to participate in the Opt-In Aggregation Program, your price for electric generation service will be x.xx% off the EDC's Price to Compare from the Starting Date through the meter read date at the end of the Term. This fixed percentage off price includes generation charges (as defined below), market based transmission charges (defined below) and all Independent System Operator charges (defined below) and gross receipt taxes. This fixed percentage off price does not include distribution charges (as defined below), or other EDC charges, including non-market based transmission charges (which will be invoiced by the EDC), applicable state or local sales or other taxes, nor any other governmental taxes or assessments, all of which will be passed through and invoiced to you in addition to the percentage off price.
Key Pricing Definitions
"Distribution charges" are part of the basic service charges on every Customer's bill for the physical delivery of electricity from the EDC to your home. The PUC regulates distribution prices and services. This charge will vary according to how much electricity you use.
"Generation charges" are charges that represent the cost of producing the electricity and are specific to this Contract. Generation prices and charges are set by the electric generation supplier you have chosen, which is {INSERT EGS Name HERE}. This charge will vary according to how much electricity you use.
"Independent System Operator charges" - are charges for services necessary to support the transmission of electric power from seller to purchaser given the obligations of control areas and transmitting utilities within those control areas to maintain reliable operations of the interconnected transmission system
"Market Based Transmission & Ancillary Service charges" are charges that represent the market based costs of transporting electricity from the source of supply to the EDC. This charge will vary with your source of supply. The Federal Energy Regulatory Commission regulates transmission prices and services.
"Non-Market Based Transmission Charges" are part of the basic service charges on every customer's bill for delivering electricity from the EDC to your home. These services include Non Market Based Charges which consist of Network Integration Transmission Charges ("NITS") charges, Regional Transmission Expansion Plan Costs ("RTEP") charges billed under Schedule 6 of the P JM Operating Agreement, and P JM Expansion costs billed under Schedule 12 and 13 of the P JM Open Access Transmission Tariff. NITS, RTEPs and PJM Expansion Costs are billed by the Independent System Operator.
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"Price-to-Compare" is the rate, in cents per kWh, representing the EDC's price for Default Service to a Customer as depicted in the EDC's Price To Compare Default Service Rider in its PaPUC-approved retail electric service tariff.
Other Pricing Terms
The price charged for electric generation and market based transmission service under this Contract is reflective of competitive market conditions, was not set or approved by the PaPUC and does not include any applicable taxes (other than gross receipt taxes) or local distribution Company fees or charges, which will be charged by the EDC. Based on the information provided by you during your signup, this address is your personal residence, vacation home or residential rental property or you are the parent or guardian for the person residing here, and you are paying the EDC bill. Accordingly, under current applicable laws, we are not required to assess sales taxes on our charges under this Contract. There is no charge for entering into this Contract or for terminating this Contract at the end of the then applicable Contract term as provided in the "Term" and "Renewal" sections.
Right of Rescission
You may cancel this Contract at any time before midnight of the third business day after receiving this disclosure by notifying us either in writing at the address provided below or by calling us at {insert EGS 800 number here}.
Savings Guarantee
Because you have selected a percentage-off product, your effective rate per kWh will change as the EDC's tariff rates and other factors relevant to the EDC's current Price To Compare will change from time to time, {INSERT EGS Name HERE} cannot guarantee your price, but does guarantee savings over the EDC's rates for the entire term of this Contract and any savings are limited to a comparison between the EDC's Price To Compare applicable at the time service is rendered and the effective rate per kWh charged hereunder.
Net Metering
If you currently own or plan to install during the term of this Contract solar, wind, or other eligible renewable electrical generating facilities in order to supply all or part of your electricity usage and such generating facility is or will be net metered by the EDC you must notify us in order for us to determine your eligibility and to properly enroll or continue to serve you.
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Renewal
THIS CONTRACT WILL AUTOMATICALLY RENEW AS DESCRIBED IN THIS SECTION. IN ORDER TO CANCEL BEFORE AN AUTOMATIC RENEWAL OF THIS CONTRACT, PLEASE NOTIFY US IN WRITING OR BY PHONE AS DESCRIBED IN THIS SECTION.
Unless terminated earlier as provided in the "Termination" section, if you have a fixed term agreement with us and it is approaching the expiration date, you will receive two written notifications ("contract renewal notices") from us that precede either the expiration date or the effective date of the proposed changes, as the case may be. We will explain your options to you in these two contract renewal notices. The first of these notices will occur between 52 and 90 days prior to the expiration date of the Contract or the effective date of the proposed Contract change; the second of these notices will occur at least 45 days prior to the Contract's expiration or the effective date of the proposed Contract change. The [second] contract renewal notice will set forth the proposed price for the renewal term, the proposed length of the renewal term, the bill cycle in which service under the new term will begin and any other proposed changes to the terms and conditions of this Contract.
UNLESS YOU NOTIFY US THAT YOU DON'T WANT TO RENEW THIS CONTRACT IN WRITING OR BY CALLING US AT {insert EGS 800 number here}. NO LATER THAN 30 DAYS AFTER THE DATE YOU RECEIVE THE SECOND CONTRACT RENEWAL NOTICE, YOU WILL BE DEEMED TO HAVE IRREVOCABLY AND UNCONDITIONALLY AGREED TO RENEW THIS CONTRACT ON THE TERMS AND CONDITIONS SET FORTH IN THE RENEWAL NOTICE. YOU MAY, HOWEVER, TERMINATE THE CONTRACT DURING ANY RENEWAL PERIOD AT ANY TIME WITHOUT INCURRING AN EARLY TERMINATION FEE, AT WHICH TIME WE WOULD RETURN YOUR ACCOUNT AT THE NEXT APPLICABLE METER READ DATE TO BEING SUPPLIED BY THE EDC UNLESS YOU HAVE SELECTED ANOTHER ELECTRIC GENERATION SUPPLIER.
Initiation of Service
THE PURPOSE OF THIS DOCUMENT IS TO AUTHORIZE {INSERT EGS NAME HERE} TO CHANGE YOUR ELECTRIC GENERATION SERVICE SUPPLIER AND, BY ENTERING INTO THIS CONTRACT, YOU AUTHORIZE {INSERT EGS Name HERE} TO UNDERTAKE WHATEVER STEPS NECESSARY TO ACCOMPLISH YOUR SWITCH. {INSERT EGS Name HERE} will begin providing electric generation service to you on the next applicable meter read date after the EGS processes your enrollment and your service will continue throughout the term of this Contract. The EDC will notify you of the date on which your electric generation service from {INSERT EGS Name HERE} will begin. {INSERT EGS Name HERE} 's electric generation service will be delivered to your residence using the EDC's electricity distribution wires. You represent and warrant that the electricity supply being purchased under this Contract is to
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be used solely for residential purposes. {INSERT EGS Name HERE} 's obligations under this Contract are conditioned on you providing complete and accurate information and on you remaining a EDC distribution Customer throughout the term under the applicable residential electric rate class.
Billing and Payment
The cost of your electric generation service will be included on your bill from the EDC, and is due and payable when your EDC bill is due at the billing address provided in your EDC bill. You acknowledge that the EDC may provide us with your billing and payment information. You will be invoiced for {INSERT EGS Name HERE} 's charges under this Contract at the applicable price set forth in the "Percentage offthe Price to Compare Pricing" section above (or, during any renewal period, under any revised price, terms and conditions as may be established as described in the "Renewal" section above) multiplied by your electricity usage as measured by the EDC in kWh during the applicable billing period. You agree to accept the measurements as determined by the EDC for purposes of accounting for the amount of power and energy services provided by us under this Contract. If the EDC is unable to read your meter, the EDC will estimate your usage and your charges will be calculated accordingly and adjusted on a future bill. Supplying you under this Contract is conditioned on the EDC accepting our enrollment of your account and your continued eligibility for consolidated billing by the EDC. If you are not eligible for consolidated billing, you need to remedy that restriction with the EDC before we can serve you. Should the EDC cease providing consolidated billing for your account and/or commence billing us for any charges relating to you, we will bill you and you will pay us for all such charges. You will be billed additional charges, including taxes and charges to distribute the electricity to your home, from the EDC consistent with its filed tariffs. You are responsible for paying any new or increased taxes, fees or other charges imposed on us or you in connection with our supply of electricity to you during the term of this Contract. {INSERT EGS Name HERE} reserves the right to change billing methods, upon the completion of the term of this Contract. Ifwe change our billing methods, we will send you two (2) advance written notices either in your bills or in separate mailing before the effective date of any such change.
Equal Payment Plan
The EDC is offering an Equal Payment Plan for our electric generation service charges. You may elect the Equal Payment Plan at any time by contacting the EDC's customer service department as long as you are not past due on your payments and are eligible for EDC consolidated billing. The Equal Payment Plan is calculated by estimating the Customer's Delivery Service Charges and electric generation service charges for a twelve (12) month period. A payment of approximately one-twelfth (1/12) of such estimate shall be rendered monthly by the EDC, subject to a monthly historical review by the EDC which may result in a change in the equal payment monthly amount to be paid by the Customer. The EDC will true up your account based on your actual charges upon termination of service or if you wish to discontinue Equal Payment Plan. For more
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infonnation or to signup for the Equal Payment Plan, contact the EDC customer service center at the number shown below.
Late or Insufficient Payment
When the EDC issues you a consolidated bill, all invoiced balances under this Contract that are not paid in full by the due date will be subj ect to the EDC's late payment policies and procedures, including imposition of late fees, interest and other charges pursuant to the tenns ofthe EDC's Retail Tariff. In addition, the EDC will have the ability to tenninate service to a Customer for the Customer's non-payment of either EGS Basic Electric Supply charges or EDC charges.
Credit
In the event that the EDC does not continue to purchase the right to receive your payments during the tenn ofthis contract, {INSERT EGS Name HERE} reserves the right to detennine if your credit standing is satisfactory for originating or continuing electric generation service under this Contract. Consistent with applicable law, {INSERT EGS Name HERE} uses unifonn income, deposit and credit requirements in detennining whether to offer service to our Customers. You hereby authorize {INSERT EGS Name HERE} to perfonn a credit check on you if the EDC does not continue to purchase the right to receive your payments.
Termination
{INSERT EGS Name HERE} may tenninate this Contract for any breach of this Contract upon 30 days' prior written notice to you of such tennination. If you fail to cure within the 30 day notice period, we may tenninate the Contract even if you subsequently cure the breach after such period has expired. {INSERT EGS Name HERE} may also tenninate this Contract upon 30 days' prior written notice to you due to a change in law or other act beyond our reasonable control or if we are no longer able to serve you. In addition, we reserve the right to reject your enrollment or tenninate this Contract if you do any of the following:
• Move within or outside of the EDC's service territory or you fail to remain a EDC distribution Customer throughout the tenn under the applicable residential electric rate class;
• Fail to be eligible for EDC consolidated billing throughout the tenn; • Rescind your authorization for release of infonnation provided in the
"Information Release Authorization" section below; or • Provide any false, inaccurate or misleading infonnation to {INSERT EGS Name
HERE} or the EDC.
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YOU MAY TERMINATE THIS CONTRACT PRIOR TO THE END OF THE APPLICABLE TERM FOR YOUR CONVENIENCE BY GIVING US NOT LESS THAN 30 DAYS' PRIOR WRITTEN NOTICE.
Upon any termination of this Contract, you will return to receiving Default Service from the EDC unless you have selected another Electric Generation Supplier. The effective date of any termination will be the next applicable meter read date after expiration of the required notice period. Upon any termination, you will remain responsible for all obligations, including payment for electricity and related costs and charges incurred under this Contract prior to the effective date of termination. The delivery of electricity to you cannot be terminated or interrupted by the EDC as a result of any dispute between {INSERT EGS Name HERE} and you but may be terminated by the EDC for nonpayment ofEDC charges in accordance with applicable law. The EDC will continue to respond to any service calls and emergencies and switching to {INSERT EGS Name HERE} will not impact your electric service reliability. Because the EDC purchases the right to receive your payments under this Contract, your payment obligations under this Contract are EDC charges for purposes of termination of service.
Assignment, Address Change
{INSERT EGS Name HERE} may assign, subcontract or delegate all or any part of our rights and/or obligations under this Contract, including your payment obligations under this Contract, without notice or your consent in accordance with the rules and regulations of the PaPUC. You may not assign any of your rights or obligations under this Contract without our prior written consent. If you move, you may terminate our Contract. You will be responsible for paying for all electricity supplied to your old address until the date this Contract is terminated in accordance with its terms. If you move within the EDC's service territory, you must contact the EDC at the number provided in the "Contact Information" section below in order to obtain new account and meter numbers for your new residence. Please contact us if you would like us to serve you again at your new location.
Change in Pricing and Other Terms
In addition to {INSERT EGS Name HERE} 's right to revise the price, terms and conditions of this Contract as provided in the "Renewal" section above, this Contract may be revised at any time by {INSERT EGS Name HERE} upon the occurrence of any event beyond its reasonable control that materially increases the obligations of {INSERT EGS Name HERE} or the cost of performing such obligations under this Contract. If you have a fixed term agreement with us and it is approaching the expiration date or whenever we propose to change the terms of service in this Contract, you will receive two written notifications from us in corresponding separate mailings that precede either the expiration date or the effective date of the proposed changes. We will explain your options to you in these two advance notifications. The first of these notices will occur between 52 and 90 days prior to the expiration date of the Contract or the effective date of the proposed Contract change; the second of these notices will occur at least 45 days
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prior to the Contract's expiration or the effective date of the proposed Contract change. You will have an opportunity to terminate this Contract without any further obligation by notifying us in writing within 30 days after the date of the second notice of the new prices and/or terms and conditions, in which case your electric generation service will terminate effective as of the next meter read date after expiration of the required notice period. You will remain responsible for any unpaid balance as of the termination date.
Information Release Authorization
Throughout the term, you authorize {INSERT EGS Name HERE} to obtain information from the EDC that includes, but is not limited to, account name, account number, billing address, service address, telephone number, standard offer service type, historical and future electricity usage, rate classification, meter readings, characteristics of electricity service and, when charges hereunder are included on your EDC bill, billing and payment information from the EDC. You authorize {INSERT EGS Name HERE} to release such information to third parties that need to know such information in connection with your power and energy service and to {INSERT EGS Name HERE} 's affiliates and subcontractors. These authorizations will remain in effect as long as this Contract is in effect. You may rescind these authorizations at any time by either calling or providing written notice to us. We reserve the right to the extent permitted by law to reject your enrollment or terminate this Contract in the event these authorizations are rescinded.
Dispute Resolution
If you have a billing or other dispute involving our service, please contact us at {insert EGS 800 number here}. You must still pay your bill in full, but may deduct the specific amount in dispute while the charges remain in dispute. You may call the PaPUC if you are not satisfied after discussing the terms with us at 1-888-PUC-FACT or 1-800-782-1100 from 8:00 am to 5:00 pm weekdays or in writing at P.O. Box 3265, Harrisburg, PA 17105-3265.
Limitation of Liability; Jury Trial Waiver
You agree that neither {INSERT EGS Name HERE} nor any of its affiliates or subcontractors will be liable for any damages or claims for matters within the control of the EDC or the ISO controlled electricity grid, which include maintenance of electric lines and systems, service interruptions, loss or termination of service, deterioration of electric services, meter readings or injury to persons or damage to property caused by the delivery or supply of electricity. Neither {INSERT EGS Name HERE} nor any of its affiliates or subcontractors will be responsible for any failure to commence or terminate power and energy service on the date specified herein due to any failure or delay in enrolling you with the EDC. {INSERT EGS Name HERE} 's liability will be limited to direct actual damages only, which will not exceed the amount of your single largest monthly invoice during the preceding 12 months. In no event will {INSERT EGS Name HERE} or any of its affiliates or subcontractors be liable for any punitive, incidental, consequential, exemplary, indirect, third party claims or other damages whether based on
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contract, warranty, tort, negligence, strict liability or otherwise, or for lost profits arising from any breach or nonperformance of this Contract. BOTH YOU AND {INSERT EGS NAME HERE} AGREE IRREVOCABLY AND UNCONDITIONALLY TO WAIVE ANY RIGHT TO A TRIAL BY JURY OR TO INITIATE OR BECOME A PARTY TO ANY CLASS ACTION CLAIMS IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS CONTRACT OR THE TRANSACTIONS CONTEMPLATED BY THIS CONTRACT.
Force Majeure
We do not transmit or deliver electricity and causes and events out of our reasonable control ("Force Majeure Events") may result in interruptions in service. We will not be liable for any such interruptions or any other failure to perform under this Contract caused by a Force Majeure Event. We are not and will not be liable for damages caused by Force Majeure Events, including but not limited to acts of God; acts of any governmental authority; accidents; strikes; labor disputes; required maintenance work; inability to access the EDC's system; nonperformance by the EDC, including, but not limited to, a facility outage on its distribution lines; changes in laws, rules or regulations of any governmental authority; or any cause beyond our reasonable control.
Miscellaneous
Except with respect to {INSERT EGS Name HERE} 's affiliates and subcontractors under the "Limitation of Liability; Jury Trial Waiver" section, there are no third party beneficiaries of this Contract. Any payments due under this Contract, and all provisions relating to the payment and collection thereof, and the provisions contained in the "Limitation of Liability; Jury Trial Waiver" section above, will survive expiration or termination for any reason. This Contract constitutes the entire agreement between you and {INSERT EGS Name HERE}. No statement, promise or inducement made by either party not contained in this Contract will be valid or binding. Any reference to days or periods will mean calendar days.
Contact Information
{INSERT EGS Name HERE} RESIDENTIAL LICENSE NUMBER IS {lnserrt EGS license number here}
Should you have any questions about your {INSERT EGS Name HERE} contract or {INSERT EGS Name HERE} charges on your invoice, please contact us between the hours of 8:00 a.m. and 8:00 p.m. eastern time on weekdays, except holidays. Our toll-free number is {INSERT EGS 800 number HERE}. We can be reached by email at: {INSERT EGS WEBSITE HERE} or by mail at: {INSERT EGS Mailing ADDRESS here}. Please contact us at this address to provide all notices under this Contract and
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contact us at this address or phone number to resolve any disputes regarding this Contract. For emergencies relating to your service, such as a power outage, or for information about universal service programs, please call your EDC at the following number:
Metropolitan Edison Company 1-888-544-4877, Pennsylvania Electric Company at 1-888-544-4877, West Penn Power Company at 1-800-255-3443, or Pennsylvania Power Companies at 1-888-544-4877
The Pennsylvania Utility Commission can be reached by mail at P.O. Box 3265, Harrisburg, PA 171053265, or by phone at 18006927380 and their website address is http://www.puc.state.pa.us/. You may contact the PUC if after discussing with us you are not satisfied with these terms and conditions.
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Met-Ed/Penelec/Penn Powerl West Penn Power Exhibit CVF-5
Customer Referral Program Agreement
Residential Customer Class Full Requirements
for
{Insert EDC Here}
CUSTOMER REFERRAL PROGRAM AGREEMENT
THIS CUSTOMER REFERRAL PROGRAM AGREEMENT ("Agreement")
is made and entered into as of {Insert Date} ("Effective Date") by and between {Insert
EDC N arne Here} ("Company"), a corporation organized and existing under the laws
of the Commonwealth of Pennsylvania and _______________ _
("Customer Referral Supplier") ) a corporation organized and existing under the laws of
[State of or Commonwealth of. .... ]. The Company and the Customer Referral Supplier
hereinafter are sometimes referred to collectively as the "Parties," or individually as a
"Party."
WITNESSETH:
WHEREAS, the Company is an electric public utility engaged, inter alia, in
providing retail electric service within its service territory located in the Commonwealth
of Pennsylvania; and
WHEREAS, the Pennsylvania Public Utility Commission ("PaPUC" or
"Commission") has found that it would serve the public interest for the Company to
establish a Customer Referral Program to refer customers that contact the Company to
licensed Electric Generation Suppliers (EGSs) based on price and selected through a
weekly competitive process ("Weekly Customer Referral Solicitation"), and the PaPUC
has approved the Program; and
WHEREAS, the undersigned EGS desires to participate in the Customer Referral
Program.
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WHEREAS, the Customer Referral Supplier is licensed by the PaPUC to offer
and supply competitive retail electric services in Pennsylvania, and is a registered
supplier under the Company's Supplier Coordination Tariff.
NOW, THEREFORE, in consideration of the mutual covenants and
promises set forth below, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally
bound, hereby covenant, promise and agree as follows:
Article 1 Definitions
Any capitalized or abbreviated term not elsewhere defined in this Agreement shall have the definition set forth in this Article.
1.1 Agreement - This Agreement for an EGS to become a Customer Referral Supplier and to participate in the Company's Customer Referral Program together with attached Appendices.
1.2 Applicable Legal Authorities - Those federal and Pennsylvania statutes and administrative rules, regulations and Orders that govern the electric utility industry in Pennsylvania, as they may be amended from time to time.
1.3 Business Day - Any day on which the Company's corporate offices are open for business.
1.4 Consolidated EDC Billing - Shall have the meaning set forth in the Company's Supplier Tariff as filed with the PaPUC and available on the Company's website.
1.5 Customer - Any person or entity who enters a contractual agreement with the Company to receive retail electric service including, without limitation, all persons or entities taking service under a retail tariff that are eligible to receive competitive electricity supply from an EGS or Default Service in accordance with the Applicable Legal Authorities.
1.6 Customer Referral Customer(s) - Customers who are provided competitive retail electric service as part of the Customer Referral Program in accordance with the terms of this Agreement.
1.7 Customer Referral Program Implementation Team - customer service representatives trained in Pennsylvania customer choice issues and processes and the Customer Referral Program, employed by the Company directly or as independent contractors to implement the customer referral program on behalf of the Company.
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1.8 Customer Referral 12 Month Fixed Price - The 12 month fixed price set forth each week in the Weekly Confirmation Sheet, which shall be in the form provided in Appendix A.
1.9 Customer Referral 24 Month Fixed Price - The 24 month fixed price set forth each week in the Weekly Confirmation Sheet, which shall be in the form provided in Appendix A. '
1.10 Customer Referral Supplier - An entity that: (i) has been selected through the Weekly Customer Referral Solicitation and has accepted the obligations and associated rights to provide competitive retail electric service under the terms of this Agreement to retail customers in accordance with the Applicable Legal Authorities; (ii) has entered into this Agreement with the Company; (iii) is a full member ofPJM and registered with PJM as a Load Serving Entity; (iv) is licensed by the PaPUC to offer and supply electric generation services in Pennsylvania, and (v) is in compliance with the terms and conditions of the Company's Supplier Tariff.
1.11 Customer Referral Supplier Representative - Any officer, director, employee, consultant, contractor, or other agent or representative of the Customer Referral Supplier having actual or apparent authority to act on behalf of the Customer Referral Supplier in connection with the Customer Referral Supplier's performance under this Agreement. To the extent the Customer Referral Supplier is a division or group of a Company, the term Customer Referral Supplier Representative does not include any person in that Company who is not part of the Customer Referral Supplier's division or group.
1.12 Default Service - Shall mean Default Service as defined in 52 Pa. Code § 54.182.
1.13 Electric Distribution Company or "EDC" - A public utility providing facilities for the transmission and distribution of electricity to retail Customers in Pennsylvania subject to the jurisdiction of the Commission.
1.14 Electric Generation Supplier or "EGS" - A person or entity that is duly certified by the Commission to offer and provide competitive retail electric service to retail customers located in the Commonwealth of Pennsylvania.
1.15 FERC - The Federal Energy Regulatory Commission.
1.16 Price-to-Compare - Shall mean "price-to-compare" as defined in 52 Pa. Code § 54.182.
1.17 Purchasing Agent - The EDC for the Customer Referral Customer.
1.18 Participating EGSs - All EOSs that have executed this Agreement.
1.19 PJM - PJM Interconnection, LLC.
1.20 Rate Schedule(s) - The Customer rate schedule(s) in the electric service tariff of the Company on file with the Commission as they may be modified from time to time.
1.21 Rate Ready - Shall have the meaning set forth in the Company' Supplier Tariff as filed with the PaPUC and available on the Company's website.
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1.22 Seller - means the Customer Referral Supplier.
1.23 Service Territory - The service territory in which the Company is authorized to furnish retail electric service in Pennsylvania.
1.24 Supplier Tariff -The PaPUC-approved Electric Generation Supplier Tariff for the Company.
1.25 Weekly Customer Referral Solicitation - The competitive bidding processes, procedures and rules employed by the Company to competitively select, each week, EGS(s) to whom it will refer residential Customers for potential enrollment as Customer Referral Customers under the terms of this Agreement.
Article 2 General Terms and Conditions
2.1 Term
This Agreement shall be effective upon execution by the Parties with the approval
of the PaPUC and shall terminate on May 31,2015. This Agreement may be terminated
prior to the end of each such term by the existence of any of the following conditions: (l)
if the Customer Referral Program is terminated by governmental action; (2) if the
Customer Referral Supplier is no longer a certified EGS; (3) if either Party is in material
breach of this Agreement or the Supplier Tariff; or (4) pursuant to Article 3 of this
Agreement.
2.2 Supplier Tariff
Except as otherwise stated herein, all the terms and conditions of the Company's
Supplier Tariff, as filed with the PaPUC and available on the Company's website, and as
modified from time to time with the approval of the Commission, are incorporated herein
by reference, are in full force and effect and are binding upon the Parties for the duration
of this Agreement.
2.2 Purchase Agent Obligations and Authority
Purchasing Agent for the Customer Referral Customers shall:
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(a) Bill the Customer Referral Customers on behalf of the Customer Referral
Supplier under Rate Ready Consolidated EDC Billing utilizing the Customer Referral 12-
Month Fixed Price or the Customer Referral 24-Month Fixed Price in effect when the
Customer enrolls, as set forth in the Weekly Confirmation Sheet;
(c) Assign to Customer Referral Supplier all eligible Customer accounts enrolled
by the Customer Referral Supplier, with the requisite Customer consent, consistent with
the Supplier Tariff as filed with the PaPUC and available on the Company's website;
(d) Inform Residential Customers that contact the Company regarding a high bill,
a new service request, or electric choice inquiry, that they have the ability to purchase
power from an EGS at favorable prices and offering such Customers the opportunity to
have their call transferred to the Company's Customer Referral Program Implementation
Team;
(e) Have the Customer Referral Program Implementation Team explain Customer
Choice, explain that offers are available on PaPowerSwitch.com, and inform the
customer that the Company can refer the customer to an EGS with the lowest Customer
Referral 12-month Fixed Price or Customer Referral 24-month Fixed Price;
(f) Create a website through which Participating EGSs can submit their 12-
month and 24-month fixed price offers;
(g) Each week during the term of this Agreement, select the lowest price offer for
the 12-month period and the 24-month service periods that will be made available to
Customers through the Customer Referral Program for the upcoming calendar week of
Sunday through Saturday provided that such prices are below the Company's then current
Price-to-Compare;
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(h) Develop a process to alternate customer transfers between two or more EGSs
that submit the same lowest price during a given Weekly Customer Referral Solicitation.
(i) Restrict the referral of customers to a Participating EGS to only those weeks
when the Participating EGS has the lowest price 12-month offer or the lowest price 24-
month offer and such offer is below the Company's then-current Price-to-Compare; and
(j) Secure PaPUC approval to implement a Customer Referral Program for the
period June 1,2013 to May 31,2015.
2.3 Obligations of the Customer Referral Supplier
The Customer Referral Supplier shall:
(a) Provide Competitive Energy Supply (as defined in the Supplier Tariff) to
Customer Referral Customers, consistent with the terms and conditions of service set
forth in Appendix B to this Agreement;
(b) Meet all of the obligations and requirements of a PaPUC-licensed EGS under
the then current Supplier Tariff;
(c) Cooperate, at its own expense, with the Company in any regulatory
compliance efforts that may be required to maintain the ongoing validity and
enforceability of the terms of this Agreement, and fulfill any regulatory reporting
requirement associated with the provision of the Customer Referral Supply, before the
PaPUC, FERC or any other regulatory body asserting jurisdiction;
(d) Use EDC Rate Ready Consolidated Billing to bill Customer Referral
Customers the Customer Referral 12-Month Fixed Price or the Customer Referral 24-
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Month Fixed Price in effect when the Customer enrolled in the Customer Referral
Program as set forth in the applicable Weekly Confirmation Sheet;
( e) Provide the Company a telephone number to which Residential Customers
may be transferred to enroll with the Customer Referral Supplier as Customer Referral
Customers;
(t) Answer within 30 seconds, no less than 70% of all customer calls transferred
to the Customer Referral Supplier;
(g) Process Customer Referral Customer enrollments, adhere to the Company's
meter reading schedule and comply with the switching rules in the Company's Supplier
Tariff;
(h) Participate in the Weekly Customer Referral Solicitation each week by
affirmatively updating its offers on the Company's website, provided that such update
may include the option of submitting a notice that the Participating EGS chooses not to
bid in a week.
2.4 No Guarantee of Customer Referral Customers
The Company makes no guarantee or representation as to the number of
Residential Customers, if any, that will become Customer Referral Customers or will
become Customer Referral Customers of any particular EGS during the term of this
Agreement.
2.5 Fees, Penalties, and Exceptions
Customer Referral Customers will be billed the Customer Referral 12-Month
Fixed Price or the Customer Referral 24-Month Fixed Price, as applicable, set forth in the
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applicable Weekly Confirmation Sheet under and subject to the terms and conditions set
forth in Appendix B. Customer Referral Suppliers will be paid by the Company pursuant
to the Customer Referral 12-Month Fixed Price or the Customer Referral 24-Month Fixed
Price, as applicable, set forth in the applicable Weekly Confirmation Sheet and the terms
and conditions of the Supplier Tariff. Customer Referral Suppliers will not impose any
penalties or fees on Customer Referral Customers.
2.6 Guaranteed Power Supply to Customer Referral Customers for either One or Two Years
All Customer Referral Customers enrolled in the Customer Referral Program shall
receive power at the Customer Referral 12-Month Fixed Price or the Customer Referral
24-Month Fixed Price, as applicable, set forth in the applicable Weekly Confirmation
Sheet from the Customer Referral Customer's initial meter read date during the contract
terms set forth in Appendix A and ending with the Customer Referral Customer's last
meter read date during the contract term set forth in Appendix B.
2.7 Enrollment Procedures and Policies
Customer Referral Customers can enroll or switch to an EGS, including an
alternative offer from the Customer Referral Supplier, at any time during the contract
term set forth in Appendix B without restriction or penalty.
2.8 Service Inquiries and Notices to Customer Referral Customers
Customer Referral Customers may direct inquiries regarding this Agreement and
any power supply or billing questions regarding the Customer Referral Program to the
Customers Referral Supplier, whose address and phone number shall be provided in all
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communications with Customer Referral Customers regarding the Customer Referral
Program.
Article 3 Early Termination of Agreement
The Customer Referral Supplier may only terminate its Consumer Contract and
Disclosure Statement with Customer Referral Customers in accordance with the terms
and conditions in the form of Consumer Contract and Disclosure Statement set forth in
Appendix B.
Article 4 Energy Efficiency and Conservation Programs
Customer Referral Supplier acknowledges that Customer Referral Customers may
participate in energy efficiency and conservation programs offered by the Company (as
required by Applicable Legal Authorities or otherwise), by P JM, or by other third parties,
and that such participation may reduce or change the amount of Customer Referral
Supply that Customer Referral Supplier is required to provide and, therefore, the amount
of money it may receive under this Agreement. Customer Referral Supply does not
include the load which the Customer Referral Supplier may have served in the absence of
such programs, and the Company shall have no obligation whatsoever to Customer
Referral Supplier with respect to the effect, if any, of such programs. Customer Referral
Supplier is solely responsible for determining the effect, if any, of such programs on
future load requirements.
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Article 5 Entire Agreement
This Agreement and Appendices attached hereto constitute the entire Agreement
and understanding between the Parties with respect to the services that are being provided
hereunder. All prior written and verbal agreements and representations, if any, with
respect to these services are merged into and superseded by this Agreement. No revisions
or modifications to this Agreement will be valid, unless written and executed by all
Parties and approved by the PaPUC.
Article 6 Authorization
Each Party to this Agreement represents and warrants that it has full and complete
authority to enter into and perform this Agreement. Each person who executes this
Agreement on behalf of either Party represents and warrants that he or she has full and
complete authority to do so and that such Party will be bound by the Agreement.
Article 7 Jurisdiction
Any and all matters of dispute between the Parties, whenever arising, shall be
governed, construed and enforced in accordance with the laws of the Commonwealth of
Pennsylvania regardless of the theory upon which such matter is asserted.
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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed by their duly authorized representatives to be effective as of the day and year
first written above.
ATTEST: {INSERT EDC HERE}
By: ______________________ By: ____________________ __
Name: [InsertName] Title: [Insert Title]
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Name: [Insert Name] Title: [fusert Title]
APPENDIX A
CUSTOMER REFERRAL PROGRAM PRICING WEEKL Y CONFIRMATION SHEET
FOR CUSTOMER ENROLLMENTS FOR THE PERIOD XXlXXlXXXX TO XXlxx/XXXX
The winning Weekly Customer Referral Solicitation supplier shall bill Customer Referral Customers that have been enrolled during the period XXlXXlXXXX to XXJXXJXXXX at the prices set forth below. The following Fixed Rate shall be in effect through the last meter read date for either 12 or 24 monthly billing periods after Enrollment.
Weekly Customer Referral ~1.=:.2---"M=on'-!.:t=.!h,-"F....!;ix~e~d~R~a"",te~ __ ~$~O:..:..:.XX~~XX=.!:..~p.=::;er~k~Wh~
Weekly Customer Referral 24-Month Fixed Rate $O.:XX:XX per kWh
Contact number for transfers of customers that would like to enroll with the supplier xxx-xxx-xxxx
Confirmation of winning Weekly Customer Referral Solicitation
Winning EGS Enrollment Period
APPENDIXB
CUSTOMER REFERRAL PROGRAM AGREEMENT
{INSERT EGS NAME HERE} CONSUMER CONTRACT AND DISCLOSURE STATEMENT OF
TERMS OF PENNSYLVANIA RESIDENTIAL ELECTRIC GENERATION SERVICE
LICENSE NUMBER {Insert EGS License Number here}
Purchase of Power and Energy Service
("{INSERT EGS Name HERE}") agrees to sell, and you agree to buy, your full requirements for residential electric generation service at the price and on the terms and conditions specified in this Consumer Contract and Disclosure Statement (the "Contract"). Price and other terms of this Contract are subject to change as provided below. {INSERT EGS Name HERE} reserves the right to revoke its electricity offer for any reason at any time prior to your acceptance of this Contract. Throughout this Contract, the words "you" and "your" refer to the Customer who has signed this Contract. The words "we," "us" and "our" refer to {INSERT EGS Name HERE}. {INSERT EGS Name HERE} represents and warrants that it is an independent seller of electric generation service licensed by the Pennsylvania Public Utility Commission ("PaPUC") and is not representing or acting on behalf of the Electric Distribution Company ("EDC") responsible for the service territory where you reside, e.g. Metropolitan Edison Company, Pennsylvania Electric Company, West Penn Power Company or Pennsylvania Power Company (each referred to as the "Electric Distribution Company" or "EDC"), any governmental bodies, or consumer groups. You will receive written notification from the EDC confirming a pending switch of your electric generation supply.
Term
The term of the Contract will be up to either {INSERT TERM HERE (either 12 or 24 months)} based on your election, beginning on the starting date that is the next meter read date after the EDC processes your enrollment (the "Starting Date"). Your switch to {INSERT EGS Name HERE} will commence with the next available meter reading following the Right of Rescission Period.
Guarantee Period
You may terminate this Contract without incurring an early termination fee at any time by selecting another Electric Generation Service Provider or returning to Default Service with the EDC. To do so, you must also notify us in writing or by calling our customer care center at {insert EGS 800 number here}. Upon your termination of this Contract, we will transfer your residential electric generation service to be supplied by the EGS of your
1
choice or your EDC at your next available meter read date and you will remain responsible for payment for electricity and related costs and charges incurred under this Contract through such meter read date.
Fixed Pricing
By choosing the Customer Referral Plan your price for electric generation service will be {INSERT 12 MONTH OR 24 MONTH FIXED PRICE PRICE HERE} from the Starting Date through the meter read date at the end of the Term. This fixed price includes generation charges (as defined below), market based transmission charges (defined below) and all Independent System Operator charges (defined below) and gross receipt taxes. This fixed price does not include distribution charges (as defined below) or other EDC charges, including non-market based transmission charges (which will be invoiced by the EDC), applicable state or local sales or other taxes, nor any other governmental taxes or assessments, all of which will be passed through and invoiced to you in addition to the fixed price.
Key Pricing Definitions
"Distribution charges" are part of the basic service charges on every Customer's bill for the physical delivery of electricity from the EDC to your home. The PUC regulates distribution prices and services. This charge will vary according to how much electricity you use.
"Generation charges" are charges that represent the cost of producing the electricity and are specific to this Contract. Generation prices and charges are set by the electric generation supplier you have chosen, which is {INSERT EGS Name HERE}. This charge will vary according to how much electricity you use.
"Independent System Operater charges" are charges for services necessary to support the transmission of electric power from seller to purchaser given the obligations of control areas and transmitting utilities within those control areas to maintain reliable operations of the interconnected transmission system
"Market Based Transmission & Ancillary Service charges" are charges that represent the market based costs of transporting electricity from the source of supply to the EDC. This charge will vary with your source of supply. The Federal Energy Regulatory Commission regulates transmission prices and services.
"Non-Market Based Transmission Charges" are part ofthe basic service charges on every customer's bill for delivering electricity from the EDC to your home. These services include Non Market Based Charges which consist of Network Integration Transmission Charges ("NITS") charges, Regional Transmission Expansion Plan Costs ("RTEP") charges billed under Schedule 6 of the P JM Operating Agreement, and P JM Expansion costs billed under Schedule 12 and 13 of the PJM Open Access Transmission Tariff. NITS, RTEPs and PJM Expansion Costs are billed by the Independent System Operator.
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"Price-to-Compare" is the rate, in cents per kWh, representing the EDC's costs to provide Default Service to a Customer as set forth in the Price-to- Compare Default Service Rider in the EDC's PaPUC-approved retail electric service tariff.
Other Pricing Terms
The price charged for electric generation and market based transmission service under this Contract is reflective of competitive market conditions, was not set or approved by the PUC and does not include any applicable taxes (other than gross receipt taxes) or local distribution Company fees or charges, which will be charged by the EDC. Based on the information provided by you during your signup, this address is your personal residence, vacation home or residential rental property or you are the parent or guardian for the person residing here, and you are paying the EDC bill. Accordingly, under current applicable laws, we are not required to assess sales taxes on our charges under this Contract. There is no charge for entering into this Contract or for terminating this Contract at the end of the then applicable Contract term as provided in the "Term" and "Renewal" sections.
Right of Rescission
You may cancel this Contract at any time before midnight of the third business day after receiving this disclosure by notifying us either in writing at the address provided below or by calling us at {insert EGS 800 number here} .
Price Comparison
Because the EDC's tariff rates and other factors relevant to the EDC's current Price-toCompare likely will change from time to time, {INSERT EGS Name HERE} cannot guarantee savings over the EDC's rates for the entire term of this Contract or any renewals and any savings are limited to a comparison against the EDC's Price To Compare applicable at the time you enter into this Contract.
Net Metering
If you currently own or plan to install during the term of this Contract solar, wind, or other eligible renewable electrical generating facilities in order to supply all or part of your electricity usage and such generating facility is or will be net metered by the EDC you must notify us in order for us to determine your eligibility and to properly enroll or continue to serve you.
Renewal
THIS CONTRACT WILL AUTOMATICALLY RENEW AS DESCRIBED IN THIS SECTION. IN ORDER TO CANCEL BEFORE AN AUTOMATIC RENEWAL OF
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THIS CONTRACT, PLEASE NOTIFY US IN WRITING OR BY PHONE AS DESCRIBED IN THIS SECTION.
Unless terminated earlier as provided in the "Termination" section, if you have a fixed term agreement with us and it is approaching the expiration date, you will receive two written notifications ("contract renewal notices") from us that precede either the expiration date or the effective date of the proposed changes, as the case may be. We will explain your options to you in these two contract renewal notices. The first of these notices will occur between 52 and 90 days prior to the expiration date ofthe Contract or the effective date of the proposed Contract change; the second of these notices will occur at least 45 days prior to the Contract's expiration or the effective date of the proposed Contract change. The second contract renewal notice will set forth the proposed price for the renewal term, the proposed length of the renewal term, the bill cycle in which service under the new term will begin and any other proposed changes to the terms and conditions of this Contract.
UNLESS YOU NOTIFY US THAT YOU DON'T WANT TO RENEW THIS CONTRACT IN WRITING OR BY CALLING US AT {insert EGS 800 number here}. NO LATER THAN 30 DAYS AFTER THE DATE YOU RECEIVE THE SECOND CONTRACT RENEWAL NOTICE, YOU WILL BE DEEMED TO HAVE IRREVOCABLY AND UNCONDITIONALLY AGREED TO RENEW THIS CONTRACT ON THE TERMS AND CONDITIONS SET FORTH IN THE RENEWAL NOTICE. YOU MAY, HOWEVER, TERMINATE THE CONTRACT DURING ANY RENEWAL PERIOD AT ANY TIME WITHOUT INCURRING AN EARLY TERMINATION FEE, AT WHICH TIME WE WOULD RETURN YOUR ACCOUNT AT THE NEXT APPLICABLE METER READ DATE TO BEING SUPPLIED BY THE EDC UNLESS YOU HAVE SELECTED ANOTHER ELECTRIC GENERATION SUPPLIER.
Initiation of Service
THE PURPOSE OF THIS DOCUMENT IS TO AUTHORIZE {INSERT EGS NAME HERE} TO CHANGE YOUR ELECTRIC GENERATION SERVICE SUPPLIER AND, BY ENTERING INTO THIS CONTRACT, YOU AUTHORIZE {INSERT EGS Name HERE} TO UNDERTAKE WHATEVER STEPS NECESSARY TO ACCOMPLISH YOUR SWITCH. {INSERT EGS Name HERE} will begin providing electric generation service to you on the next applicable meter read date after the EGS processes your enrollment and your service will continue throughout the term of this Contract. The EDC will notify you of the date on which your electric generation service from {INSERT EGS Name HERE} will begin. {INSERT EGS Name HERE} 's electric generation service will be delivered to your residence using the EDC's electricity distribution wires. You represent and warrant that the electricity supply being purchased under this Contract is to be used solely for residential purposes. {INSERT EGS Name HERE} 's obligations under this Contract are conditioned on you providing complete and accurate information and on you remaining a EDC distribution Customer throughout the term under the applicable residential electric rate class.
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Billing and Payment
The cost of your electric generation service will be included on your bill from the EDC, and is due and payable when your EDC bill is due at the billing address provided in your EDC bill. You acknowledge that the EDC may provide us with your billing and payment information. You will be invoiced for {INSERT EGS Name HERE} 's charges under this Contract at the applicable price set forth in the "Fixed Pricing" section above (or, during any renewal period, under any revised price, terms and conditions as may be established as described in the "Renewal" section above) multiplied by your electricity usage as measured by the EDC in kWh during the applicable billing period. You agree to accept the measurements as determined by the EDC for purposes of accounting for the amount of power and energy services provided by us under this Contract. If the EDC is unable to read your meter, the EDC will estimate your usage and your charges will be calculated accordingly and adjusted on a future bill. Supplying you under this Contract is conditioned on the EDC accepting our enrollment of your account and your continued eligibility for consolidated billing by the EDC. If you are not eligible for consolidated billing, you need to remedy that restriction with the EDC before we can serve you. Should the EDC cease providing consolidated billing for your account and/or commence billing us for any charges relating to you, we will bill you and you will pay us for all such charges. You will be billed additional charges, including taxes and charges to distribute the electricity to your home, from the EDC consistent with its filed tariffs. You are responsible for paying any new or increased taxes, fees or other charges imposed on us or you in connection with our supply of electricity to you during the term of this Contract. {INSERT EGS Name HERE} reserves the right to change billing methods, upon the completion of the term of this Contract. If we change our billing methods, we will send you two (2) advance written notices either in your bills or in separate mailing before the effective date of any such change.
Equal Payment Plan
The EDC is offering an Equal Payment Plan for our electric generation service charges. You may elect the Equal Payment Plan at any time by contacting the EDC's customer service department as long as you are not past due on your payments and are eligible for EDC consolidated billing. The Equal Payment Plan is calculated by estimating the Customer's Delivery Service Charges and electric generation service charges for a twelve (12) month period. A payment of approximately one-twelfth (1/12) of such estimate shall be rendered monthly by the EDC, subject to a monthly historical review by the EDC which may result in a change in the equal payment monthly amount to be paid by the Customer. The EDC will true up your account based on your actual charges upon termination of service or if you wish to discontinue Equal Payment Plan. For more information or to signup for the Equal Payment Plan, contact the EDC customer service center at the number shown below.
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Late or Insufficient Payment
When the EDC issues you a consolidated bill, all invoiced balances under this Contract that are not paid in full by the due date will be subject to the EDC's late payment policies and procedures, including imposition of late fees, interest and other charges pursuant to the terms of the EDC's Retail Tariff. In addition, the EDC will have the ability to terminate service to a Customer for the Customer's non-payment of either EGS Basic Electric Supply charges or EDC charges.
Credit
In the event that the EDC does not continue to purchase the right to receive your payments during the term of this contract, {INSERT EGS Name HERE} reserves the right to determine if your credit standing is satisfactory for originating or continuing electric generation service under this Contract. Consistent with applicable law, {INSERT EGS Name HERE} uses uniform income, deposit and credit requirements in determining whether to offer service to our Customers. You hereby authorize {INSERT EGS Name HERE} to perform a credit check on you if the EDC does not continue to purchase the right to receive your payments.
Termination
{INSERT EGS Name HERE} may terminate this Contract for any breach of this Contract upon 30 days' prior written notice to you of such termination. If you fail to cure within the 30 day notice period, we may terminate the Contract even if you subsequently cure the breach after such period has expired. {INSERT EGS Name HERE} may also terminate this Contract upon 30 days' prior written notice to you due to a change in law or other act beyond our reasonable control or if we are no longer able to serve you. In addition, we reserve the right to reject your enrollment or terminate this Contract if you do any of the following:
• Move within or outside ofthe EDC's service territory or you fail to remain a EDC distribution Customer throughout the term under the applicable residential electric rate class;
• Fail to be eligible for EDC consolidated billing throughout the term; • Rescind your authorization for release of information provided in the
"Information Release Authorization" section below; or • Provide any false, inaccurate or misleading information to {INSERT EGS Name
HERE} or the EDe.
YOU MAY TERMINATE THIS CONTRACT PRIOR TO THE END OF THE APPLICABLE TERM FOR YOUR CONVENIENCE BY GIVING US NOT LESS THAN 30 DAYS' PRIOR WRITTEN NOTICE.
Upon any termination ofthis Contract, you will return to receiving Default Service from the EDC unless you have selected another Electric Generation Supplier. The effective
6
date of any termination will be the next applicable meter read date after expiration of the required notice period. Upon any termination, you will remain responsible for all obligations, including payment for electricity and related costs and charges incurred under this Contract prior to the effective date of termination. The delivery of electricity to you cannot be terminated or interrupted by the EDC as a result of any dispute between {INSERT EGS Name HERE} and you but may be terminated by the EDC for nonpayment of EDC charges in accordance with applicable law. The EDC will continue to respond to any service calls and emergencies and switching to {INSERT EGS Name HERE} will not impact your electric service reliability. Because the EDC purchases the right to receive your payments under this Contract, your payment obligations under this Contract are EDC charges for purposes of termination of service.
Assignment, Address Change
{INSERT EGS Name HERE} may assign, subcontract or delegate all or any part of our rights and/or obligations under this Contract, including your payment obligations under this Contract, without notice or your consent in accordance with the rules and regulations of the PaPUC. You may not assign any of your rights or obligations under this Contract without our prior written consent. If you move, you may terminate our Contract. You will be responsible for paying for all electricity supplied to your old address until the date this Contract is terminated in accordance with its terms. If you move within the EDC's service territory, you must contact the EDC at the number provided in the "Contact Information" section below in order to obtain new account and meter numbers for your new residence. Please contact us if you would like us to serve you again at your new location.
Change in Pricing and Other Terms
In addition to {INSERT EGS Name HERE} 's right to revise the price, terms and conditions of this Contract as provided in the "Renewal" section above, this Contract may be revised at any time by {INSERT EGS Name HERE} upon the occurrence of any event beyond its reasonable control that materially increases the obligations of {INSERT EGS Name HERE} or the cost of performing such obligations under this Contract. If you have a fixed term agreement with us and it is approaching the expiration date or whenever we propose to change the terms of service in this Contract, you will receive two written notifications from us in corresponding separate mailings that precede either the expiration date or the effective date of the proposed changes. We will explain your options to you in these two advance notifications. The first of these notices will occur between 52 and 90 days prior to the expiration date of the Contract or the effective date ofthe proposed Contract change; the second of these notices will occur at least 45 days prior to the Contract's expiration or the effective date of the proposed Contract change. You will have an opportunity to terminate this Contract without any further obligation by notifying us in writing within 30 days after the date of the second notice ofthe new prices and/or terms and conditions, in which case your electric generation service will terminate effective as of the next meter read date after expiration of the required notice period. You will remain responsible for any unpaid balance as of the termination date.
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Information Release Authorization
Throughout the term, you authorize {INSERT EGS Name HERE} to obtain information from the EDC that includes, but is not limited to, account name, account number, billing address, service address, telephone number, standard offer service type, historical and future electricity usage, rate classification, meter readings, characteristics of electricity service and, when charges hereunder are included on your EDC bill, billing and payment information from the EDC. You authorize {INSERT EGS Name HERE} to release such information to third parties that need to know such information in connection with your power and energy service and to {INSERT EGS Name HERE} 's affiliates and subcontractors. These authorizations will remain in effect as long as this Contract is in effect. You may rescind these authorizations at any time by either calling or providing written notice to us. We reserve the right to the extent permitted by law to reject your enrollment or terminate this Contract in the event these authorizations are rescinded.
Dispute Resolution
If you have a billing or other dispute involving our service, please contact us at {insert EGS 800 number here}. You must still pay your bill in full, but may deduct the specific amount in dispute while the charges remain in dispute. You may call the PaPUC if you are not satisfied after discussing the terms with us at 1-888-PUC-F ACT or 1-800-782-1100 from 8:00 am to 5:00 pm weekdays or in writing at P.O. Box 3265, Harrisburg, PA 17105-3265.
Limitation of Liability; Jury Trial Waiver
You agree that neither {INSERT EGS Name HERE} nor any of its affiliates or subcontractors will be liable for any damages or claims for matters within the control of the EDC or the ISO controlled electricity grid, which include maintenance of electric lines and systems, service interruptions, loss or termination of service, deterioration of electric services, meter readings or injury to persons or damage to property caused by the delivery or supply of electricity. Neither {INSERT EGS Name HERE} nor any of its affiliates or subcontractors will be responsible for any failure to commence or terminate power and energy service on the date specified herein due to any failure or delay in enrolling you with the EDC. {INSERT EGS Name HERE} 's liability will be limited to direct actual damages only, which will not exceed the amount of your single largest monthly invoice during the preceding 12 months. In no event will {INSERT EGS Name HERE} or any of its affiliates or subcontractors be liable for any punitive, incidental, consequential, exemplary, indirect, third party claims or other damages whether based on contract, warranty, tort, negligence, strict liability or otherwise, or for lost profits arising from any breach or nonperformance of this Contract. BOTH YOU AND {INSERT EGS NAME HERE} AGREE IRREVOCABLY AND UNCONDITIONALLY TO WAIVE ANY RIGHT TO A TRIAL BY JURY OR TO INITIATE OR BECOME A PARTY TO ANY CLASS ACTION CLAIMS IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
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TO THIS CONTRACT OR THE TRANSACTIONS CONTEMPLATED BY THIS CONTRACT.
Force Majeure
We do not transmit or deliver electricity and causes and events out of our reasonable control ("Force Majeure Events") may result in interruptions in service. We will not be liable for any such interruptions or any other failure to perform under this Contract caused by a Force Majeure Event. We are not and will not be liable for damages caused by Force Majeure Events, including but not limited to acts of God; acts of any governmental authority; accidents; strikes; labor disputes; required maintenance work; inability to access the EDC's system; nonperformance by the EDC, including, but not limited to, a facility outage on its distribution lines; changes in laws, rules or regulations of any governmental authority; or any cause beyond our reasonable control.
Miscellaneous
Except with respect to {INSERT EGS Name HERE} 's affiliates and subcontractors under the "Limitation of Liability; Jury Trial Waiver" section, there are no third party beneficiaries of this Contract. Any payments due under this Contract, and all provisions relating to the payment and collection thereof, and the provisions contained in the "Limitation of Liability; Jury Trial Waiver" section above, will survive expiration or termination for any reason. This Contract constitutes the entire agreement between you and {INSERT EGS Name HERE}. No statement, promise or inducement made by either party not contained in this Contract will be valid or binding. Any reference to days or periods will mean calendar days.
Contact Information
{INSERT EGS Name HERE} RESIDENTIAL LICENSE NUMBER IS {Insert EGS license number here}
Should you have any questions about your {INSERT EGS Name HERE} contract or {INSERT EGS Name HERE} charges on your invoice, please contact us between the hours of 8:00 a.m. and 8:00 p.m. eastern time on weekdays, except holidays. Our toll-free number is {INSERT EGS 800 number HERE}. We can be reached by email at: {INSERT EGS WEB-SITE HERE} or by mail at: { INSERT EGS Mailing ADDRESS here}. Please contact us at this address to provide all notices under this Contract and contact us at this address or phone number to resolve any disputes regarding this Contract. For emergencies relating to your service, such as a power outage, or for information about universal service programs, please call your EDC at the following number:
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Metropolitan Edison Company 1-888-544-4877, Pennsylvania Electric Company at 1-888-544-4877, West Penn Power Company at 1-800-255-3443, or Pennsylvania Power Company at 1-888-544-4877
The Pennsylvania Utility Commission can be reached by mail at P.O. Box 3265, Harrisburg, PA 171053265, or by phone at 18006927380 and their website address is http://www.puc.state.pa.us/. You may contact the PUC if after discussing with us you are not satisfied with these terms and conditions.
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Met-Ed/Penelec/Penn Powerl West Penn Power Exhibit CVF-5
Customer Referral Program Agreement
Residential Customer Class Full Requirements
for
{Insert EDC Here}
CUSTOMER REFERRAL PROGRAM AGREEMENT
THIS CUSTOMER REFERRAL PROGRAM AGREEMENT ("Agreement")
is made and entered into as of {Insert Date} ("Effective Date") by and between {Insert
EDC N arne Here} ("Company"), a corporation organized and existing under the laws
of the Commonwealth of Pennsylvania and _______________ _
("Customer Referral Supplier") ) a corporation organized and existing under the laws of
[State of or Commonwealth of. .... ]. The Company and the Customer Referral Supplier
hereinafter are sometimes referred to collectively as the "Parties," or individually as a
"Party."
WITNESSETH:
WHEREAS, the Company is an electric public utility engaged, inter alia, in
providing retail electric service within its service territory located in the Commonwealth
of Pennsylvania; and
WHEREAS, the Pennsylvania Public Utility Commission ("PaPUC" or
"Commission") has found that it would serve the public interest for the Company to
establish a Customer Referral Program to refer customers that contact the Company to
licensed Electric Generation Suppliers (EGSs) based on price and selected through a
weekly competitive process ("Weekly Customer Referral Solicitation"), and the PaPUC
has approved the Program; and
WHEREAS, the undersigned EGS desires to participate in the Customer Referral
Program.
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WHEREAS, the Customer Referral Supplier is licensed by the PaPUC to offer
and supply competitive retail electric services in Pennsylvania, and is a registered
supplier under the Company's Supplier Coordination Tariff.
NOW, THEREFORE, in consideration of the mutual covenants and
promises set forth below, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally
bound, hereby covenant, promise and agree as follows:
Article 1 Definitions
Any capitalized or abbreviated term not elsewhere defined in this Agreement shall have the definition set forth in this Article.
1.1 Agreement - This Agreement for an EGS to become a Customer Referral Supplier and to participate in the Company's Customer Referral Program together with attached Appendices.
1.2 Applicable Legal Authorities - Those federal and Pennsylvania statutes and administrative rules, regulations and Orders that govern the electric utility industry in Pennsylvania, as they may be amended from time to time.
1.3 Business Day - Any day on which the Company's corporate offices are open for business.
1.4 Consolidated EDC Billing - Shall have the meaning set forth in the Company's Supplier Tariff as filed with the PaPUC and available on the Company's website.
1.5 Customer - Any person or entity who enters a contractual agreement with the Company to receive retail electric service including, without limitation, all persons or entities taking service under a retail tariff that are eligible to receive competitive electricity supply from an EGS or Default Service in accordance with the Applicable Legal Authorities.
1.6 Customer Referral Customer(s) - Customers who are provided competitive retail electric service as part of the Customer Referral Program in accordance with the terms of this Agreement.
1.7 Customer Referral Program Implementation Team - customer service representatives trained in Pennsylvania customer choice issues and processes and the Customer Referral Program, employed by the Company directly or as independent contractors to implement the customer referral program on behalf of the Company.
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1.8 Customer Referral 12 Month Fixed Price - The 12 month fixed price set forth each week in the Weekly Confirmation Sheet, which shall be in the form provided in Appendix A.
1.9 Customer Referral 24 Month Fixed Price - The 24 month fixed price set forth each week in the Weekly Confirmation Sheet, which shall be in the form provided in Appendix A. '
1.10 Customer Referral Supplier - An entity that: (i) has been selected through the Weekly Customer Referral Solicitation and has accepted the obligations and associated rights to provide competitive retail electric service under the terms of this Agreement to retail customers in accordance with the Applicable Legal Authorities; (ii) has entered into this Agreement with the Company; (iii) is a full member ofPJM and registered with PJM as a Load Serving Entity; (iv) is licensed by the PaPUC to offer and supply electric generation services in Pennsylvania, and (v) is in compliance with the terms and conditions of the Company's Supplier Tariff.
1.11 Customer Referral Supplier Representative - Any officer, director, employee, consultant, contractor, or other agent or representative of the Customer Referral Supplier having actual or apparent authority to act on behalf of the Customer Referral Supplier in connection with the Customer Referral Supplier's performance under this Agreement. To the extent the Customer Referral Supplier is a division or group of a Company, the term Customer Referral Supplier Representative does not include any person in that Company who is not part of the Customer Referral Supplier's division or group.
1.12 Default Service - Shall mean Default Service as defined in 52 Pa. Code § 54.182.
1.13 Electric Distribution Company or "EDC" - A public utility providing facilities for the transmission and distribution of electricity to retail Customers in Pennsylvania subject to the jurisdiction of the Commission.
1.14 Electric Generation Supplier or "EGS" - A person or entity that is duly certified by the Commission to offer and provide competitive retail electric service to retail customers located in the Commonwealth of Pennsylvania.
1.15 FERC - The Federal Energy Regulatory Commission.
1.16 Price-to-Compare - Shall mean "price-to-compare" as defined in 52 Pa. Code § 54.182.
1.17 Purchasing Agent - The EDC for the Customer Referral Customer.
1.18 Participating EGSs - All EOSs that have executed this Agreement.
1.19 PJM - PJM Interconnection, LLC.
1.20 Rate Schedule(s) - The Customer rate schedule(s) in the electric service tariff of the Company on file with the Commission as they may be modified from time to time.
1.21 Rate Ready - Shall have the meaning set forth in the Company' Supplier Tariff as filed with the PaPUC and available on the Company's website.
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1.22 Seller - means the Customer Referral Supplier.
1.23 Service Territory - The service territory in which the Company is authorized to furnish retail electric service in Pennsylvania.
1.24 Supplier Tariff -The PaPUC-approved Electric Generation Supplier Tariff for the Company.
1.25 Weekly Customer Referral Solicitation - The competitive bidding processes, procedures and rules employed by the Company to competitively select, each week, EGS(s) to whom it will refer residential Customers for potential enrollment as Customer Referral Customers under the terms of this Agreement.
Article 2 General Terms and Conditions
2.1 Term
This Agreement shall be effective upon execution by the Parties with the approval
of the PaPUC and shall terminate on May 31,2015. This Agreement may be terminated
prior to the end of each such term by the existence of any of the following conditions: (l)
if the Customer Referral Program is terminated by governmental action; (2) if the
Customer Referral Supplier is no longer a certified EGS; (3) if either Party is in material
breach of this Agreement or the Supplier Tariff; or (4) pursuant to Article 3 of this
Agreement.
2.2 Supplier Tariff
Except as otherwise stated herein, all the terms and conditions of the Company's
Supplier Tariff, as filed with the PaPUC and available on the Company's website, and as
modified from time to time with the approval of the Commission, are incorporated herein
by reference, are in full force and effect and are binding upon the Parties for the duration
of this Agreement.
2.2 Purchase Agent Obligations and Authority
Purchasing Agent for the Customer Referral Customers shall:
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(a) Bill the Customer Referral Customers on behalf of the Customer Referral
Supplier under Rate Ready Consolidated EDC Billing utilizing the Customer Referral 12-
Month Fixed Price or the Customer Referral 24-Month Fixed Price in effect when the
Customer enrolls, as set forth in the Weekly Confirmation Sheet;
(c) Assign to Customer Referral Supplier all eligible Customer accounts enrolled
by the Customer Referral Supplier, with the requisite Customer consent, consistent with
the Supplier Tariff as filed with the PaPUC and available on the Company's website;
(d) Inform Residential Customers that contact the Company regarding a high bill,
a new service request, or electric choice inquiry, that they have the ability to purchase
power from an EGS at favorable prices and offering such Customers the opportunity to
have their call transferred to the Company's Customer Referral Program Implementation
Team;
(e) Have the Customer Referral Program Implementation Team explain Customer
Choice, explain that offers are available on PaPowerSwitch.com, and inform the
customer that the Company can refer the customer to an EGS with the lowest Customer
Referral 12-month Fixed Price or Customer Referral 24-month Fixed Price;
(f) Create a website through which Participating EGSs can submit their 12-
month and 24-month fixed price offers;
(g) Each week during the term of this Agreement, select the lowest price offer for
the 12-month period and the 24-month service periods that will be made available to
Customers through the Customer Referral Program for the upcoming calendar week of
Sunday through Saturday provided that such prices are below the Company's then current
Price-to-Compare;
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(h) Develop a process to alternate customer transfers between two or more EGSs
that submit the same lowest price during a given Weekly Customer Referral Solicitation.
(i) Restrict the referral of customers to a Participating EGS to only those weeks
when the Participating EGS has the lowest price 12-month offer or the lowest price 24-
month offer and such offer is below the Company's then-current Price-to-Compare; and
(j) Secure PaPUC approval to implement a Customer Referral Program for the
period June 1,2013 to May 31,2015.
2.3 Obligations of the Customer Referral Supplier
The Customer Referral Supplier shall:
(a) Provide Competitive Energy Supply (as defined in the Supplier Tariff) to
Customer Referral Customers, consistent with the terms and conditions of service set
forth in Appendix B to this Agreement;
(b) Meet all of the obligations and requirements of a PaPUC-licensed EGS under
the then current Supplier Tariff;
(c) Cooperate, at its own expense, with the Company in any regulatory
compliance efforts that may be required to maintain the ongoing validity and
enforceability of the terms of this Agreement, and fulfill any regulatory reporting
requirement associated with the provision of the Customer Referral Supply, before the
PaPUC, FERC or any other regulatory body asserting jurisdiction;
(d) Use EDC Rate Ready Consolidated Billing to bill Customer Referral
Customers the Customer Referral 12-Month Fixed Price or the Customer Referral 24-
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Month Fixed Price in effect when the Customer enrolled in the Customer Referral
Program as set forth in the applicable Weekly Confirmation Sheet;
( e) Provide the Company a telephone number to which Residential Customers
may be transferred to enroll with the Customer Referral Supplier as Customer Referral
Customers;
(t) Answer within 30 seconds, no less than 70% of all customer calls transferred
to the Customer Referral Supplier;
(g) Process Customer Referral Customer enrollments, adhere to the Company's
meter reading schedule and comply with the switching rules in the Company's Supplier
Tariff;
(h) Participate in the Weekly Customer Referral Solicitation each week by
affirmatively updating its offers on the Company's website, provided that such update
may include the option of submitting a notice that the Participating EGS chooses not to
bid in a week.
2.4 No Guarantee of Customer Referral Customers
The Company makes no guarantee or representation as to the number of
Residential Customers, if any, that will become Customer Referral Customers or will
become Customer Referral Customers of any particular EGS during the term of this
Agreement.
2.5 Fees, Penalties, and Exceptions
Customer Referral Customers will be billed the Customer Referral 12-Month
Fixed Price or the Customer Referral 24-Month Fixed Price, as applicable, set forth in the
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applicable Weekly Confirmation Sheet under and subject to the terms and conditions set
forth in Appendix B. Customer Referral Suppliers will be paid by the Company pursuant
to the Customer Referral 12-Month Fixed Price or the Customer Referral 24-Month Fixed
Price, as applicable, set forth in the applicable Weekly Confirmation Sheet and the terms
and conditions of the Supplier Tariff. Customer Referral Suppliers will not impose any
penalties or fees on Customer Referral Customers.
2.6 Guaranteed Power Supply to Customer Referral Customers for either One or Two Years
All Customer Referral Customers enrolled in the Customer Referral Program shall
receive power at the Customer Referral 12-Month Fixed Price or the Customer Referral
24-Month Fixed Price, as applicable, set forth in the applicable Weekly Confirmation
Sheet from the Customer Referral Customer's initial meter read date during the contract
terms set forth in Appendix A and ending with the Customer Referral Customer's last
meter read date during the contract term set forth in Appendix B.
2.7 Enrollment Procedures and Policies
Customer Referral Customers can enroll or switch to an EGS, including an
alternative offer from the Customer Referral Supplier, at any time during the contract
term set forth in Appendix B without restriction or penalty.
2.8 Service Inquiries and Notices to Customer Referral Customers
Customer Referral Customers may direct inquiries regarding this Agreement and
any power supply or billing questions regarding the Customer Referral Program to the
Customers Referral Supplier, whose address and phone number shall be provided in all
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communications with Customer Referral Customers regarding the Customer Referral
Program.
Article 3 Early Termination of Agreement
The Customer Referral Supplier may only terminate its Consumer Contract and
Disclosure Statement with Customer Referral Customers in accordance with the terms
and conditions in the form of Consumer Contract and Disclosure Statement set forth in
Appendix B.
Article 4 Energy Efficiency and Conservation Programs
Customer Referral Supplier acknowledges that Customer Referral Customers may
participate in energy efficiency and conservation programs offered by the Company (as
required by Applicable Legal Authorities or otherwise), by P JM, or by other third parties,
and that such participation may reduce or change the amount of Customer Referral
Supply that Customer Referral Supplier is required to provide and, therefore, the amount
of money it may receive under this Agreement. Customer Referral Supply does not
include the load which the Customer Referral Supplier may have served in the absence of
such programs, and the Company shall have no obligation whatsoever to Customer
Referral Supplier with respect to the effect, if any, of such programs. Customer Referral
Supplier is solely responsible for determining the effect, if any, of such programs on
future load requirements.
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Article 5 Entire Agreement
This Agreement and Appendices attached hereto constitute the entire Agreement
and understanding between the Parties with respect to the services that are being provided
hereunder. All prior written and verbal agreements and representations, if any, with
respect to these services are merged into and superseded by this Agreement. No revisions
or modifications to this Agreement will be valid, unless written and executed by all
Parties and approved by the PaPUC.
Article 6 Authorization
Each Party to this Agreement represents and warrants that it has full and complete
authority to enter into and perform this Agreement. Each person who executes this
Agreement on behalf of either Party represents and warrants that he or she has full and
complete authority to do so and that such Party will be bound by the Agreement.
Article 7 Jurisdiction
Any and all matters of dispute between the Parties, whenever arising, shall be
governed, construed and enforced in accordance with the laws of the Commonwealth of
Pennsylvania regardless of the theory upon which such matter is asserted.
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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed by their duly authorized representatives to be effective as of the day and year
first written above.
ATTEST: {INSERT EDC HERE}
By: ______________________ By: ____________________ __
Name: [InsertName] Title: [Insert Title]
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Name: [Insert Name] Title: [fusert Title]
APPENDIX A
CUSTOMER REFERRAL PROGRAM PRICING WEEKL Y CONFIRMATION SHEET
FOR CUSTOMER ENROLLMENTS FOR THE PERIOD XXlXXlXXXX TO XXlxx/XXXX
The winning Weekly Customer Referral Solicitation supplier shall bill Customer Referral Customers that have been enrolled during the period XXlXXlXXXX to XXJXXJXXXX at the prices set forth below. The following Fixed Rate shall be in effect through the last meter read date for either 12 or 24 monthly billing periods after Enrollment.
Weekly Customer Referral ~1.=:.2---"M=on'-!.:t=.!h,-"F....!;ix~e~d~R~a"",te~ __ ~$~O:..:..:.XX~~XX=.!:..~p.=::;er~k~Wh~
Weekly Customer Referral 24-Month Fixed Rate $O.:XX:XX per kWh
Contact number for transfers of customers that would like to enroll with the supplier xxx-xxx-xxxx
Confirmation of winning Weekly Customer Referral Solicitation
Winning EGS Enrollment Period
APPENDIXB
CUSTOMER REFERRAL PROGRAM AGREEMENT
{INSERT EGS NAME HERE} CONSUMER CONTRACT AND DISCLOSURE STATEMENT OF
TERMS OF PENNSYLVANIA RESIDENTIAL ELECTRIC GENERATION SERVICE
LICENSE NUMBER {Insert EGS License Number here}
Purchase of Power and Energy Service
("{INSERT EGS Name HERE}") agrees to sell, and you agree to buy, your full requirements for residential electric generation service at the price and on the terms and conditions specified in this Consumer Contract and Disclosure Statement (the "Contract"). Price and other terms of this Contract are subject to change as provided below. {INSERT EGS Name HERE} reserves the right to revoke its electricity offer for any reason at any time prior to your acceptance of this Contract. Throughout this Contract, the words "you" and "your" refer to the Customer who has signed this Contract. The words "we," "us" and "our" refer to {INSERT EGS Name HERE}. {INSERT EGS Name HERE} represents and warrants that it is an independent seller of electric generation service licensed by the Pennsylvania Public Utility Commission ("PaPUC") and is not representing or acting on behalf of the Electric Distribution Company ("EDC") responsible for the service territory where you reside, e.g. Metropolitan Edison Company, Pennsylvania Electric Company, West Penn Power Company or Pennsylvania Power Company (each referred to as the "Electric Distribution Company" or "EDC"), any governmental bodies, or consumer groups. You will receive written notification from the EDC confirming a pending switch of your electric generation supply.
Term
The term of the Contract will be up to either {INSERT TERM HERE (either 12 or 24 months)} based on your election, beginning on the starting date that is the next meter read date after the EDC processes your enrollment (the "Starting Date"). Your switch to {INSERT EGS Name HERE} will commence with the next available meter reading following the Right of Rescission Period.
Guarantee Period
You may terminate this Contract without incurring an early termination fee at any time by selecting another Electric Generation Service Provider or returning to Default Service with the EDC. To do so, you must also notify us in writing or by calling our customer care center at {insert EGS 800 number here}. Upon your termination of this Contract, we will transfer your residential electric generation service to be supplied by the EGS of your
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choice or your EDC at your next available meter read date and you will remain responsible for payment for electricity and related costs and charges incurred under this Contract through such meter read date.
Fixed Pricing
By choosing the Customer Referral Plan your price for electric generation service will be {INSERT 12 MONTH OR 24 MONTH FIXED PRICE PRICE HERE} from the Starting Date through the meter read date at the end of the Term. This fixed price includes generation charges (as defined below), market based transmission charges (defined below) and all Independent System Operator charges (defined below) and gross receipt taxes. This fixed price does not include distribution charges (as defined below) or other EDC charges, including non-market based transmission charges (which will be invoiced by the EDC), applicable state or local sales or other taxes, nor any other governmental taxes or assessments, all of which will be passed through and invoiced to you in addition to the fixed price.
Key Pricing Definitions
"Distribution charges" are part of the basic service charges on every Customer's bill for the physical delivery of electricity from the EDC to your home. The PUC regulates distribution prices and services. This charge will vary according to how much electricity you use.
"Generation charges" are charges that represent the cost of producing the electricity and are specific to this Contract. Generation prices and charges are set by the electric generation supplier you have chosen, which is {INSERT EGS Name HERE}. This charge will vary according to how much electricity you use.
"Independent System Operater charges" are charges for services necessary to support the transmission of electric power from seller to purchaser given the obligations of control areas and transmitting utilities within those control areas to maintain reliable operations of the interconnected transmission system
"Market Based Transmission & Ancillary Service charges" are charges that represent the market based costs of transporting electricity from the source of supply to the EDC. This charge will vary with your source of supply. The Federal Energy Regulatory Commission regulates transmission prices and services.
"Non-Market Based Transmission Charges" are part ofthe basic service charges on every customer's bill for delivering electricity from the EDC to your home. These services include Non Market Based Charges which consist of Network Integration Transmission Charges ("NITS") charges, Regional Transmission Expansion Plan Costs ("RTEP") charges billed under Schedule 6 of the P JM Operating Agreement, and P JM Expansion costs billed under Schedule 12 and 13 of the PJM Open Access Transmission Tariff. NITS, RTEPs and PJM Expansion Costs are billed by the Independent System Operator.
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"Price-to-Compare" is the rate, in cents per kWh, representing the EDC's costs to provide Default Service to a Customer as set forth in the Price-to- Compare Default Service Rider in the EDC's PaPUC-approved retail electric service tariff.
Other Pricing Terms
The price charged for electric generation and market based transmission service under this Contract is reflective of competitive market conditions, was not set or approved by the PUC and does not include any applicable taxes (other than gross receipt taxes) or local distribution Company fees or charges, which will be charged by the EDC. Based on the information provided by you during your signup, this address is your personal residence, vacation home or residential rental property or you are the parent or guardian for the person residing here, and you are paying the EDC bill. Accordingly, under current applicable laws, we are not required to assess sales taxes on our charges under this Contract. There is no charge for entering into this Contract or for terminating this Contract at the end of the then applicable Contract term as provided in the "Term" and "Renewal" sections.
Right of Rescission
You may cancel this Contract at any time before midnight of the third business day after receiving this disclosure by notifying us either in writing at the address provided below or by calling us at {insert EGS 800 number here} .
Price Comparison
Because the EDC's tariff rates and other factors relevant to the EDC's current Price-toCompare likely will change from time to time, {INSERT EGS Name HERE} cannot guarantee savings over the EDC's rates for the entire term of this Contract or any renewals and any savings are limited to a comparison against the EDC's Price To Compare applicable at the time you enter into this Contract.
Net Metering
If you currently own or plan to install during the term of this Contract solar, wind, or other eligible renewable electrical generating facilities in order to supply all or part of your electricity usage and such generating facility is or will be net metered by the EDC you must notify us in order for us to determine your eligibility and to properly enroll or continue to serve you.
Renewal
THIS CONTRACT WILL AUTOMATICALLY RENEW AS DESCRIBED IN THIS SECTION. IN ORDER TO CANCEL BEFORE AN AUTOMATIC RENEWAL OF
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THIS CONTRACT, PLEASE NOTIFY US IN WRITING OR BY PHONE AS DESCRIBED IN THIS SECTION.
Unless terminated earlier as provided in the "Termination" section, if you have a fixed term agreement with us and it is approaching the expiration date, you will receive two written notifications ("contract renewal notices") from us that precede either the expiration date or the effective date of the proposed changes, as the case may be. We will explain your options to you in these two contract renewal notices. The first of these notices will occur between 52 and 90 days prior to the expiration date ofthe Contract or the effective date of the proposed Contract change; the second of these notices will occur at least 45 days prior to the Contract's expiration or the effective date of the proposed Contract change. The second contract renewal notice will set forth the proposed price for the renewal term, the proposed length of the renewal term, the bill cycle in which service under the new term will begin and any other proposed changes to the terms and conditions of this Contract.
UNLESS YOU NOTIFY US THAT YOU DON'T WANT TO RENEW THIS CONTRACT IN WRITING OR BY CALLING US AT {insert EGS 800 number here}. NO LATER THAN 30 DAYS AFTER THE DATE YOU RECEIVE THE SECOND CONTRACT RENEWAL NOTICE, YOU WILL BE DEEMED TO HAVE IRREVOCABLY AND UNCONDITIONALLY AGREED TO RENEW THIS CONTRACT ON THE TERMS AND CONDITIONS SET FORTH IN THE RENEWAL NOTICE. YOU MAY, HOWEVER, TERMINATE THE CONTRACT DURING ANY RENEWAL PERIOD AT ANY TIME WITHOUT INCURRING AN EARLY TERMINATION FEE, AT WHICH TIME WE WOULD RETURN YOUR ACCOUNT AT THE NEXT APPLICABLE METER READ DATE TO BEING SUPPLIED BY THE EDC UNLESS YOU HAVE SELECTED ANOTHER ELECTRIC GENERATION SUPPLIER.
Initiation of Service
THE PURPOSE OF THIS DOCUMENT IS TO AUTHORIZE {INSERT EGS NAME HERE} TO CHANGE YOUR ELECTRIC GENERATION SERVICE SUPPLIER AND, BY ENTERING INTO THIS CONTRACT, YOU AUTHORIZE {INSERT EGS Name HERE} TO UNDERTAKE WHATEVER STEPS NECESSARY TO ACCOMPLISH YOUR SWITCH. {INSERT EGS Name HERE} will begin providing electric generation service to you on the next applicable meter read date after the EGS processes your enrollment and your service will continue throughout the term of this Contract. The EDC will notify you of the date on which your electric generation service from {INSERT EGS Name HERE} will begin. {INSERT EGS Name HERE} 's electric generation service will be delivered to your residence using the EDC's electricity distribution wires. You represent and warrant that the electricity supply being purchased under this Contract is to be used solely for residential purposes. {INSERT EGS Name HERE} 's obligations under this Contract are conditioned on you providing complete and accurate information and on you remaining a EDC distribution Customer throughout the term under the applicable residential electric rate class.
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Billing and Payment
The cost of your electric generation service will be included on your bill from the EDC, and is due and payable when your EDC bill is due at the billing address provided in your EDC bill. You acknowledge that the EDC may provide us with your billing and payment information. You will be invoiced for {INSERT EGS Name HERE} 's charges under this Contract at the applicable price set forth in the "Fixed Pricing" section above (or, during any renewal period, under any revised price, terms and conditions as may be established as described in the "Renewal" section above) multiplied by your electricity usage as measured by the EDC in kWh during the applicable billing period. You agree to accept the measurements as determined by the EDC for purposes of accounting for the amount of power and energy services provided by us under this Contract. If the EDC is unable to read your meter, the EDC will estimate your usage and your charges will be calculated accordingly and adjusted on a future bill. Supplying you under this Contract is conditioned on the EDC accepting our enrollment of your account and your continued eligibility for consolidated billing by the EDC. If you are not eligible for consolidated billing, you need to remedy that restriction with the EDC before we can serve you. Should the EDC cease providing consolidated billing for your account and/or commence billing us for any charges relating to you, we will bill you and you will pay us for all such charges. You will be billed additional charges, including taxes and charges to distribute the electricity to your home, from the EDC consistent with its filed tariffs. You are responsible for paying any new or increased taxes, fees or other charges imposed on us or you in connection with our supply of electricity to you during the term of this Contract. {INSERT EGS Name HERE} reserves the right to change billing methods, upon the completion of the term of this Contract. If we change our billing methods, we will send you two (2) advance written notices either in your bills or in separate mailing before the effective date of any such change.
Equal Payment Plan
The EDC is offering an Equal Payment Plan for our electric generation service charges. You may elect the Equal Payment Plan at any time by contacting the EDC's customer service department as long as you are not past due on your payments and are eligible for EDC consolidated billing. The Equal Payment Plan is calculated by estimating the Customer's Delivery Service Charges and electric generation service charges for a twelve (12) month period. A payment of approximately one-twelfth (1/12) of such estimate shall be rendered monthly by the EDC, subject to a monthly historical review by the EDC which may result in a change in the equal payment monthly amount to be paid by the Customer. The EDC will true up your account based on your actual charges upon termination of service or if you wish to discontinue Equal Payment Plan. For more information or to signup for the Equal Payment Plan, contact the EDC customer service center at the number shown below.
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Late or Insufficient Payment
When the EDC issues you a consolidated bill, all invoiced balances under this Contract that are not paid in full by the due date will be subject to the EDC's late payment policies and procedures, including imposition of late fees, interest and other charges pursuant to the terms of the EDC's Retail Tariff. In addition, the EDC will have the ability to terminate service to a Customer for the Customer's non-payment of either EGS Basic Electric Supply charges or EDC charges.
Credit
In the event that the EDC does not continue to purchase the right to receive your payments during the term of this contract, {INSERT EGS Name HERE} reserves the right to determine if your credit standing is satisfactory for originating or continuing electric generation service under this Contract. Consistent with applicable law, {INSERT EGS Name HERE} uses uniform income, deposit and credit requirements in determining whether to offer service to our Customers. You hereby authorize {INSERT EGS Name HERE} to perform a credit check on you if the EDC does not continue to purchase the right to receive your payments.
Termination
{INSERT EGS Name HERE} may terminate this Contract for any breach of this Contract upon 30 days' prior written notice to you of such termination. If you fail to cure within the 30 day notice period, we may terminate the Contract even if you subsequently cure the breach after such period has expired. {INSERT EGS Name HERE} may also terminate this Contract upon 30 days' prior written notice to you due to a change in law or other act beyond our reasonable control or if we are no longer able to serve you. In addition, we reserve the right to reject your enrollment or terminate this Contract if you do any of the following:
• Move within or outside ofthe EDC's service territory or you fail to remain a EDC distribution Customer throughout the term under the applicable residential electric rate class;
• Fail to be eligible for EDC consolidated billing throughout the term; • Rescind your authorization for release of information provided in the
"Information Release Authorization" section below; or • Provide any false, inaccurate or misleading information to {INSERT EGS Name
HERE} or the EDe.
YOU MAY TERMINATE THIS CONTRACT PRIOR TO THE END OF THE APPLICABLE TERM FOR YOUR CONVENIENCE BY GIVING US NOT LESS THAN 30 DAYS' PRIOR WRITTEN NOTICE.
Upon any termination ofthis Contract, you will return to receiving Default Service from the EDC unless you have selected another Electric Generation Supplier. The effective
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date of any termination will be the next applicable meter read date after expiration of the required notice period. Upon any termination, you will remain responsible for all obligations, including payment for electricity and related costs and charges incurred under this Contract prior to the effective date of termination. The delivery of electricity to you cannot be terminated or interrupted by the EDC as a result of any dispute between {INSERT EGS Name HERE} and you but may be terminated by the EDC for nonpayment of EDC charges in accordance with applicable law. The EDC will continue to respond to any service calls and emergencies and switching to {INSERT EGS Name HERE} will not impact your electric service reliability. Because the EDC purchases the right to receive your payments under this Contract, your payment obligations under this Contract are EDC charges for purposes of termination of service.
Assignment, Address Change
{INSERT EGS Name HERE} may assign, subcontract or delegate all or any part of our rights and/or obligations under this Contract, including your payment obligations under this Contract, without notice or your consent in accordance with the rules and regulations of the PaPUC. You may not assign any of your rights or obligations under this Contract without our prior written consent. If you move, you may terminate our Contract. You will be responsible for paying for all electricity supplied to your old address until the date this Contract is terminated in accordance with its terms. If you move within the EDC's service territory, you must contact the EDC at the number provided in the "Contact Information" section below in order to obtain new account and meter numbers for your new residence. Please contact us if you would like us to serve you again at your new location.
Change in Pricing and Other Terms
In addition to {INSERT EGS Name HERE} 's right to revise the price, terms and conditions of this Contract as provided in the "Renewal" section above, this Contract may be revised at any time by {INSERT EGS Name HERE} upon the occurrence of any event beyond its reasonable control that materially increases the obligations of {INSERT EGS Name HERE} or the cost of performing such obligations under this Contract. If you have a fixed term agreement with us and it is approaching the expiration date or whenever we propose to change the terms of service in this Contract, you will receive two written notifications from us in corresponding separate mailings that precede either the expiration date or the effective date of the proposed changes. We will explain your options to you in these two advance notifications. The first of these notices will occur between 52 and 90 days prior to the expiration date of the Contract or the effective date ofthe proposed Contract change; the second of these notices will occur at least 45 days prior to the Contract's expiration or the effective date of the proposed Contract change. You will have an opportunity to terminate this Contract without any further obligation by notifying us in writing within 30 days after the date of the second notice ofthe new prices and/or terms and conditions, in which case your electric generation service will terminate effective as of the next meter read date after expiration of the required notice period. You will remain responsible for any unpaid balance as of the termination date.
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Information Release Authorization
Throughout the term, you authorize {INSERT EGS Name HERE} to obtain information from the EDC that includes, but is not limited to, account name, account number, billing address, service address, telephone number, standard offer service type, historical and future electricity usage, rate classification, meter readings, characteristics of electricity service and, when charges hereunder are included on your EDC bill, billing and payment information from the EDC. You authorize {INSERT EGS Name HERE} to release such information to third parties that need to know such information in connection with your power and energy service and to {INSERT EGS Name HERE} 's affiliates and subcontractors. These authorizations will remain in effect as long as this Contract is in effect. You may rescind these authorizations at any time by either calling or providing written notice to us. We reserve the right to the extent permitted by law to reject your enrollment or terminate this Contract in the event these authorizations are rescinded.
Dispute Resolution
If you have a billing or other dispute involving our service, please contact us at {insert EGS 800 number here}. You must still pay your bill in full, but may deduct the specific amount in dispute while the charges remain in dispute. You may call the PaPUC if you are not satisfied after discussing the terms with us at 1-888-PUC-F ACT or 1-800-782-1100 from 8:00 am to 5:00 pm weekdays or in writing at P.O. Box 3265, Harrisburg, PA 17105-3265.
Limitation of Liability; Jury Trial Waiver
You agree that neither {INSERT EGS Name HERE} nor any of its affiliates or subcontractors will be liable for any damages or claims for matters within the control of the EDC or the ISO controlled electricity grid, which include maintenance of electric lines and systems, service interruptions, loss or termination of service, deterioration of electric services, meter readings or injury to persons or damage to property caused by the delivery or supply of electricity. Neither {INSERT EGS Name HERE} nor any of its affiliates or subcontractors will be responsible for any failure to commence or terminate power and energy service on the date specified herein due to any failure or delay in enrolling you with the EDC. {INSERT EGS Name HERE} 's liability will be limited to direct actual damages only, which will not exceed the amount of your single largest monthly invoice during the preceding 12 months. In no event will {INSERT EGS Name HERE} or any of its affiliates or subcontractors be liable for any punitive, incidental, consequential, exemplary, indirect, third party claims or other damages whether based on contract, warranty, tort, negligence, strict liability or otherwise, or for lost profits arising from any breach or nonperformance of this Contract. BOTH YOU AND {INSERT EGS NAME HERE} AGREE IRREVOCABLY AND UNCONDITIONALLY TO WAIVE ANY RIGHT TO A TRIAL BY JURY OR TO INITIATE OR BECOME A PARTY TO ANY CLASS ACTION CLAIMS IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
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TO THIS CONTRACT OR THE TRANSACTIONS CONTEMPLATED BY THIS CONTRACT.
Force Majeure
We do not transmit or deliver electricity and causes and events out of our reasonable control ("Force Majeure Events") may result in interruptions in service. We will not be liable for any such interruptions or any other failure to perform under this Contract caused by a Force Majeure Event. We are not and will not be liable for damages caused by Force Majeure Events, including but not limited to acts of God; acts of any governmental authority; accidents; strikes; labor disputes; required maintenance work; inability to access the EDC's system; nonperformance by the EDC, including, but not limited to, a facility outage on its distribution lines; changes in laws, rules or regulations of any governmental authority; or any cause beyond our reasonable control.
Miscellaneous
Except with respect to {INSERT EGS Name HERE} 's affiliates and subcontractors under the "Limitation of Liability; Jury Trial Waiver" section, there are no third party beneficiaries of this Contract. Any payments due under this Contract, and all provisions relating to the payment and collection thereof, and the provisions contained in the "Limitation of Liability; Jury Trial Waiver" section above, will survive expiration or termination for any reason. This Contract constitutes the entire agreement between you and {INSERT EGS Name HERE}. No statement, promise or inducement made by either party not contained in this Contract will be valid or binding. Any reference to days or periods will mean calendar days.
Contact Information
{INSERT EGS Name HERE} RESIDENTIAL LICENSE NUMBER IS {Insert EGS license number here}
Should you have any questions about your {INSERT EGS Name HERE} contract or {INSERT EGS Name HERE} charges on your invoice, please contact us between the hours of 8:00 a.m. and 8:00 p.m. eastern time on weekdays, except holidays. Our toll-free number is {INSERT EGS 800 number HERE}. We can be reached by email at: {INSERT EGS WEB-SITE HERE} or by mail at: { INSERT EGS Mailing ADDRESS here}. Please contact us at this address to provide all notices under this Contract and contact us at this address or phone number to resolve any disputes regarding this Contract. For emergencies relating to your service, such as a power outage, or for information about universal service programs, please call your EDC at the following number:
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Metropolitan Edison Company 1-888-544-4877, Pennsylvania Electric Company at 1-888-544-4877, West Penn Power Company at 1-800-255-3443, or Pennsylvania Power Company at 1-888-544-4877
The Pennsylvania Utility Commission can be reached by mail at P.O. Box 3265, Harrisburg, PA 171053265, or by phone at 18006927380 and their website address is http://www.puc.state.pa.us/. You may contact the PUC if after discussing with us you are not satisfied with these terms and conditions.
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Met-Ed/Penelec/Penn Power/ West Penn Power Exhibit CVF-6
Customer Referral Program
Bidding Rules
for
Metropolitan Edison Company ("Met-Ed")
Pennsylvania Electric Company ("Penelec")
Pennsylvania Power Company ("Penn Power")
West Penn Power Company ("West Penn")
1. INTRODUCTION
These Bidding Rules apply to the weekly Customer Referral Solicitation to procure Customer Referral Program (UCRP") products for Metropolitan Edison Company ("Met-Ed"), Pennsylvania Electric Company ("Penelec"), Pennsylvania Power Company ("Penn Power") and West Penn Power Company ("West Penn"), each of which may be referred to as a "Company," and/or in combinations as "Companies" (hereafter referred to as the "Companies") for all of their retail customers that place calls to the Companies regarding high bills, new mover requests, or questions about retail choice.
Bidders need to execute the applicable CRP Agreement, be familiar with these Bidding Rules, be an EGS licensed by the Pennsylvania Public Utility Commission (UPaPUC"), and be a registered EGS under the Supplier Tariff of the respective Company or Companies to which they wish to submit a weekly bid. Bidders also should visit the CRP Website regularly for up-to-date information including information specific to each weekly auction. The CRP Website contains relevant data from the previous weeks' auctions, the schedule and key dates for participating in the auction process, and other information.
Unless noted otherwise, "days" refer to business days and times refer to prevailing Eastern Time.
Examples in these Bidding Rules are illustrative only.
These Bidding Rules may be modified from time to time by the Companies in order to: (i) facilitate a more competitive auction process; (ii) make any necessary corrections and/or clarifications; (iii) conform to any change in state or federal law or rule; and (iv) apply any change deemed necessary at the discretion of the Companies. All modifications will be posted to the CRP Website.
2. DEFINITIONS
Bid Deadline: Weekly on Friday, 2:00 PM EPT. The time as recorded by the Companies shall be the official time. During weeks when Friday is a Companyobserved holiday, the bid deadline will occur on the last business day of the week, 2:00 PM EPT.
Bidder: Either a Prospective Bidder, Qualified Bidder or Winning Bidder
Company (individually) or Companies (collectively): Metropolitan Edison Company, Pennsylvania Electric Company, Pennsylvania Power Company, and West Penn Power Company
EGS: Electric Generation Supplier
PUC: Pennsylvania Public Utility Commission
Prospective Bidder: A licensed EGS in the Commonwealth of Pennsylvania and registered for coordination services in accordance with the Company's Supplier Tariff
Qualified Bidder: A Prospective Bidder that successfully executes a contract with the Companies to participate in the CRP
Winning Bidder: A Qualified Bidder with the lowest price per kWh bid for a 12-month service term, and a Qualified Bidder with the lowest price per kWh bid for a 24-month service term
Week: Sunday through Saturday
3. BID SUBMISSIONS
3.1 Authorized Bidders
A bid shall only be submitted by a Qualified Bidder.
3.2 Bid Timing
Bids must be submitted electronically via the Companies' CRP Website by the Bid Deadline. Any bid submitted after 2:00 PM EST shall be considered a bid for the subsequent Bid Deadline.
3.3 Bid Disqualification
Bids submitted by any means other than the Companies' CRP website will be excluded for evaluation by the Company.
4. PRODUCT REQUIREMENTS
A Qualified Bidder that submits a bid shall submit a flat price per kWh for a 12-month service term and/or a 24-month service term. The price per kWh will apply to all residential customers included in the CRP during the following week. The price per kWh may vary by Company.
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5. NUMBER OF BIDS
A Qualified Bidder may submit any number of bids for either the 12-month service term or the 24-month service term. The last bid submitted by a Qualified Bidder prior to the Bid Deadline shall be considered its final bid and prior bids for the forthcoming Week shall be deemed null and void.
6. BID RETRACTION
A Qualified Bidder may not retract any bid submitted via the Companies CRP website after the Bid Deadline. All bids from Winning Bidders must remain valid and in full force for the forthcoming Week. If a Winning Bidder reneges on its bid, it will not be permitted to participate in the CRP thereafter and will be liable for all costs incurred by the Companies as a consequence of its having reneged on its bid.
7. WEEKLY BID REQUIREMENT
Qualified Bidders that wish to participate in a weekly solicitation must submit a new bid for each such solicitation; bids submitted in prior solicitations will not be deemed to roll-over from week to week. If the Bidder chooses not to offer a bid for a weekly solicitation, then they must update their status on the CRP Website by affirmatively stating that they choose not to participate in the weekly bid. A failure to update their status on the CRP website could result in the EGS becoming ineligible to participate in the CRP.
8. DETERMINATION OF WINNING BIDS
The Company will rank the bids from lowest price to highest price, using the last bid submitted by each Qualified Bidder prior to the Bid Deadline. The Company will determine the Winning Bidder for the 12-month service term and the 24-month service term. Bids from Qualified Bidders are evaluated solely on a flat price per kWh basis.
9. AUCTION FAILURE
There will be no Winning Bidder for the 12-month service term or 24-month service term of any Week in which there are no bids submitted for the respective service term that are less than the known price-to-compare (respective to each Company).
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10. AUCTION TIE
In the event of a tie, if more than one Qualified Bidder has the lowest price per kWh for either the 12-month service term or the 24-month service term, the Company will implement a process to alternate customer transfers between two or more EGSs that submit the same lowest price during a given Weekly Customer Referral Solicitation
11. PRESENTATION OF WINNING BID
Winning Bidders will be included in the Companies' CRP for the Week directly after the Bid Deadline. The Company will email the winning Bidder the CRP Pricing Weekly Confirmation Sheet by close of business each Friday. Winning Bidders will be refreshed by the Company for each Week. Customers may decline enrollment with the Winning Bidder without reason or penalty.
12. OBLIGATIONS OF WINNING BIDDERS
12.1 Obligation to Supply
Winning Bidders shall supply all residential customers transferred to them by the customer referral implementation team the winning bid price. Winning Bidders shall not refuse service to any residential customer included in the CRP.
12.2 Customer Support Obligation
Winning Bidders shall maintain during the term of the Customer Referral Program Agreement a call center to receive a telephonic transfer of CRP customers from the Companies.
13. TERM OF SERVICE
The delivery period for the 12-month service term and 24-month service term begins on the first meter read date the customer enrollment is effective.
14. CONSOLIDATED BILLING
Winning Bidders shall utilize Company rate-ready consolidated billing, as defined in the Company's Supplier Tariff.
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15. ENROLLMENT AND TERMS OF SERVICE
Winning Bidders shall submit customer enrollments in the CRP and EGS rate schedules in accordance with the Company's EGS Supplier Tariff. Bidders shall adhere to all terms and conditions provided in the Company's EGS Supplier Tariff.
16. EXPIRATION OF PRODUCT TERM
Winning Bidders must provide to customers they serve under CRP the customer notices required by the PUC's regulations and Interim Guidelines and any other additional notices that the Commission may require. If, after any of the required notices have been provided, the customer does not affirmatively elect either to receive service from a different EGS or to return to default service, the customer will remain with the EGS that previously provided service during the 12-month or 24-month service term, as applicable, under the CRP. If the customer remains with such EGS after the end of its applicable 12-month or 24-month service term under the CRP, the EGS, subject to providing all required customer notices, as previously described, and subject to the conditions and requirements set forth in such notices, may establish, in its sole discretion, the price at which it will provide service to the customer and will not be limited to price it had charged during the CRP service term.
17. SANCTIONS FOR FAILURE TO COMPLY
Sanctions may be imposed on a Qualified Bidder for failing to abide by any of these Bidding Rules. Any Bidder that defaults on any of the CRP Terms & Conditions will not be permitted to participate in the CRP thereafter and will be liable for all costs incurred by the Companies as a consequence of the Bidder's default.
18. MISCELLANEOUS
18.1 Assignability
A Winning Bidder shall not substitute another entity in its place, transfer its rights to another entity, or otherwise assign its status as Winning Bidder to another entity without the express written consent of the Companies.
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18.2 Warranty on Information
The information provided for the auction, including but not limited to information provided on the CRP Website, has been prepared to assist bidders in evaluating the auction process. It does not purport to contain all the information that may be relevant to a bidder in satisfying its due diligence efforts. The Companies make no representation or warranty, expressed or implied, as to the accuracy or completeness of the information, and shall not, either individually or as a corporation, be liable for any representation expressed or implied in the auction process or any omissions from the auction process, or any information provided to a bidder by any other source. A bidder should check the Information Website frequently to ensure it has the latest documentation and information. The Companies, nor any of their representatives, shall be liable to a bidder or any of its representatives for any consequences relating to or arising from the bidder's use of information.
18.3 Hold Harmless
Bidders shall hold the Companies harmless of and from all damages and costs, including but not limited to legal costs, in connection with all claims, expenses, losses, proceedings or investigations that arise in connection with the auction process or the award of a bid pursuant to the auction process.
18.4 Bid Submissions Become the Companies' Property
All bids submitted by bidders participating in the auction will become the exclusive property of the Companies upon conclusion of the auction process.
18.5 Bidder's Acceptance
The submission of a bid to the Companies constitutes the Bidder's acknowledgement and acceptance of all the terms, conditions and requirements of the CRP process, the Companies' Supplier Tariffs, and the Customer Referral Program Agreement.
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18.6 Permits, Licenses, Compliance with the Law and Regulatory Approvals
Bidders shall obtain all licenses, permits and status that may be required by any governmental body, agency or organization necessary to conduct business or to perform hereunder. Bidders' subcontractors, employees, agents and representatives of each in performance hereunder shall comply with all applicable governmental laws, ordinances, rules, regulations, orders and all other governmental requirements. All Bidders participating in the CRP Auctions must be registered under the Supplier Tariff forthe respective Company's auction in which they desire to participate.
18.7 CRP Website
The Company will establish a CRP Website that will be the main source of information for CRP. The CRP Website will provide the following information:
(i) Home - This section provides announcements of interest to Bidders regarding the CRP;
(ii) Regulatory Information - This section provides presentations regarding the CRP prepared by the Companies, as well as relevant orders from the PaPUC;
(iii) Documents - This section provides a link to the Companies' EGS Supplier Tariffs and the contract that must be executed between the Prospective Bidder and Companies before the Prospective Bidder becomes a Qualified Bidder;
(iv) Ask a Question - This section allows Bidders to ask questions via a web forum. The Companies will provide answers to the questions through a posting to this area of the CRP Website so that all Bidders have access to the same information. Aspects of the question or answer that might identify the party asking the question will be removed before posting.
(v) FAQs - This section lists frequently asked questions and answers received from Bidders;
(vi) Bids - This section allows Bidders to submit bids. Beginning on the day prior to the bid deadline each week, Bidders can also view the identity of the Winning Bidders and the winning bid price from the prior Week, as well as all Bidders and bid prices from the prior week. This information will be posted until the bid deadline for the current week.
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