Pennsylvania Code › Title 52 - PUBLIC UTILITIES › Part I - Public Utility Commission › Subpart C - Fixed Service Utilities › Chapter 54 - ELECTRICITY GENERATION CUSTOMER CHOICE › Subchapter G - DEFAULT SERVICE › Section 54.188 - Commission review of default service programs and rates

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A DSP shall file a plan or amended plan
					 for competitive procurement with the Commission and obtain Commission approval
					 of the plan or amended plan considering the standards in
					 66 Pa.C.S. §
												2807(e)(3.1), (3.2), (3.3)
					 and (3.4) (relating to duties of electric distribution companies) before the
					 competitive process is implemented. The Commission will hold hearings as
					 necessary on the proposed plan or amended plan. A default service program will
					 initially be referred to the Office of Administrative Law Judge for further
					 proceedings as may be required.
(b)
					 If the Commission fails to issue a final order on the plan or amended plan
					 within 9 months of the date the plan or amended plan is filed, the plan or
					 amended plan will be deemed approved and the DSP may implement the plan or
					 amended plan as filed. Costs incurred through an approved competitive
					 procurement plan will be deemed to be the least cost over time as required
					 under
					 66 Pa.C.S. §
												2807(e)(3.4)(ii).
(c) Upon entry of the Commission's final
					 order, a DSP shall acquire generation supply for the period of service in a
					 manner consistent with the terms of the approved procurement and implementation
					 plans and consistent with the standards identified in §
											54.186 (relating to default
					 service procurement and implementation plans).
(d) The Commission may initiate an
					 investigation regarding implementation of the DSP's default service program
					 and, at the conclusion of the investigation, order remedies as may be lawful
					 and appropriate. The Commission will not deny the DSP the recovery of its
					 reasonable costs for purchases made pursuant to an approved competitive
					 procurement process unless the DSP concealed or misled the Commission regarding
					 its adherence to the program, or otherwise violated the provisions of this
					 subchapter or the code. Except as provided under the Alternative Energy
					 Portfolio Standards Act (73 P. S. §
												§
												1648.1-1648.8), the Commission may not order
					 a DSP to procure power from a specific generation supplier, from a specific
					 generation fuel type or from new generation only. At the time the Commission
					 evaluates the plan and prior to approval, the Commission will consider the
					 default service provider's obligation to provide adequate and reliable service
					 to customers and that the DSP has obtained a prudent mix of contracts to obtain
					 least cost on a long-term, short-term and spot market basis. The Commission
					 will make specific findings which include:
(1) The DSP's plan includes prudent steps
					 necessary to negotiate favorable generation supply contracts through a
					 competitive procurement process.
(2) The DSP's plan includes prudent steps
					 necessary to obtain least cost generation supply contracts on a long-term,
					 short-term and spot market basis.
(3) Neither the DSP nor its affiliated
					 interest has withheld from the market any generation supply in a manner that
					 violates Federal law.