1. PA Supplier Webinar
March 20, 2019

2. Agenda Default Service Program V (“DSP V”) Changes
Customer Assistance Program (“CAP”)
Customer Referral Program (“CRP”)
Program Overview
Script Changes
Questions
Supplier Webinar
March 20, 2019
Meeting Name
Location • Date

3. FERC 494 Issue
Docket No. EL concerns the reallocation of PJM Regional Transmission Expansion Plan charges for certain transmission facilities that operate at 500 kV and above within the PJM footprint.
The Companies’ will process all credits and/or charges resulting from the FERC Settlement on behalf of their customers and suppliers (both wholesale and retail) by directly passing the credits and/or charges on to their customers through the Companies’ Default Service Support (“DSS”) Riders.
Supplier Webinar
March 20, 2019
Meeting Name
Location • Date

4. Hourly Pricing Threshold
Companies will lower the hourly pricing threshold to 100 kW effective June 1, 2019 where smart meters will be used for hourly pricing billing.
Change complies with Commission’s policy statement in the Retail Market Investigation (RMI) proceeding.
Affects GS-Medium Customers as rate schedule will be split into GS-Medium (PTC) and GS-Medium (HPS).
These designations do not result in a new rate schedule.
Penn Power GS-Large will also move to Hourly Pricing.
GS-Large rate schedule was created in the 2014 base rate case.
Due to metering restrictions these customers have been served under the PTC Rider.
Smart meters are now installed to meter hourly pricing.
Supplier Webinar
March 20, 2019
Meeting Name
Location • Date

5. Hourly Pricing Threshold Communication Plan
Information on
Hourly Pricing Explanation;
The “What is Hourly Pricing” slideshow; and
Links for Electric Choice.
Customer notification letters -
All Met-Ed, Penelec and Penn Power GS-Medium & West Penn Power Schedule 30 Customers.
Series of three similar letters notifying all customers.
Letters to be mailed November 2018, January 2019 and April 2019.
Penn Power GS-Large customer notification letter -
Supplier Webinar
March 20, 2019
Meeting Name
Location • Date

6. POR Clawback Charge
DSP IV two-year pilot extended in DSP V for four years.
Begins with charges assessed in September 2018 based on a review of data for the twelve months ended August 31, 2018 and ending with charges assessed in September 2021.
Two-prong test to calculate the charge:
EGSs whose average write-offs as a percentage of revenues over the 12-month period ending August 31 each year exceeds 200% of the average percentage of total EGS write-offs as a percentage of revenues per operating company.
Of those EGSs identified in the first prong, EGSs whose average price charged over the same 12-month period exceeds 150% of the average PTC for the period.
EGSs identified by both prongs are charged difference between an EGS’s actual write-offs and 200% of the average EGS write-offs per company.
Companies retain amounts charged to EGSs if each individual Company’s actual uncollectible accounts expense exceeds the amount of uncollectible expense in rates for the 12-month period ending August 31.
Companies refund the EGS charge to customers through the Default Service Support Rider if a Company’s actual uncollectible expense is less than the amount of uncollectible expense recovered in rates.
Supplier Webinar
March 20, 2019
Meeting Name
Location • Date

7. Purchase of Receivables EGS Arrears Report
The Companies committed to developing an EGS-specific customer arrears report with unpaid aged EGS account balances.
The report is provided to EGSs participating in the purchase of receivables program.
The report is issued on a quarterly basis.
3rd quarter 2018 report was issued October 19, 2018.
4th quarter 2018 report was issued January 15, 2019.
Information contained in the customer arrears report provided to each EGS shall only contain information regarding customers of that specific EGS.
Supplier Webinar
March 20, 2019
Meeting Name
Location • Date

8. CAP Shopping Limitations
Effective June 1, 2019, Customer Assistance Program (“CAP”) customers are prohibited from entering into any retail electricity contract with an EGS which would charge rates exceeding the applicable price to compare for the entire duration of the EGS contract.
EGSs are not permitted to enter into contracts with CAP customers charging early termination or cancellation fees.
EGSs may only use Rate Ready billing.
Bill Ready and Dual Billing are prohibited.
EGS enrollments submitted for any CAP customers that do not meet these requirements will be rejected.
Reject reason A13 - CAP customer not eligible for requested rate or bill method.
Supplier Webinar
March 20, 2019
Meeting Name
Location • Date

9. Transitioning CAP Shopping Customers
For the purpose of transitioning CAP customers who are currently being served by an EGS, as of June 1, 2019:
Fixed Duration:
CAP customers who are served under a fixed duration contract with an EGS as of June 1, 2019 may remain with their EGS until the expiration date of the fixed duration contract or the contract is terminated, whichever comes first.
Non-CAP customers served under a fixed duration contract who subsequently enroll in CAP may remain with their EGS until the expiration date of the fixed duration contract or the contract is terminated, whichever comes first.
Upon expiration or termination of a pre-existing fixed duration contract, supplier must either:
Enroll the CAP customer under a contract compliant with the new CAP shopping rules; or,
Return the CAP customer to default service.
Supplier Webinar
March 20, 2019
Meeting Name
Location • Date

10. Transitioning CAP Shopping Customers
Month to Month Contract:
For suppliers serving CAP customers under a month-to-month contract as of June 1, 2019, the EGS must either:
Return the CAP customer to default service effective June 1, 2019; or,
Enroll the CAP customer under a compliant contract, with an effective date of June 1, 2019.
For suppliers serving non-CAP customers under a month-to-month contract who subsequently enroll in CAP, the EGS must either, within 120 days of the customer’s CAP enrollment:
Return the CAP customer to default service; or,
Enroll the CAP customer under a compliant contract.
Safe Harbor rule: Suppliers must determine the CAP status when their options notice is provided at least 30 days prior to contract expiration. If the customer is CAP at the time, the supplier must follow the rules for CAP customers. If the customer is not identified at the time as CAP, the supplier can treat the customer as non-CAP.
Supplier Webinar
March 20, 2019
Meeting Name
Location • Date

11. CAP Supplier Guidelines
CAP products must use a CAP program label
Labeled “PCAP Customer Product” when presented to customers
EGSs may have cancellation provisions within their contract disclosure statements to drop customers who enter CAP.
EGSs must provide at least one notice 30 days in advance of dropping the CAP customer.
EGSs who want to revise existing contract to a CAP compliant product:
Must obtain customer’s affirmative response.
EGSs must provide two notices.
Supplier Webinar
March 20, 2019

12. CAP Indicators
Sync Lists, including the CAP indicator, will be available on the FirstEnergy web portal on or about April 15th
FirstEnergy will provide a list of a supplier’s CAP customers via request to FE Web Contact Inquiry
In order to expedite, please reference DSP V
The ECL, including the CAP indicator, will be available on the FirstEnergy web portal on or about April 22nd
The FirstEnergy account lookup mechanism will be updated to include a CAP indicator effective April 15th
Supplier Webinar
March 20, 2019

13. ECL and Sync Lists File Format
ECL will have Y/N to indicate
Sync List will also have CAP field
The CAP indicator will appear on Sync Lists for other states, but blank
Supplier Webinar
March 20, 2019

14. EDI Testing
March 01, 2019 through August 31, 2019 – EDI Testing schedule for DSP V
30 day turn around time for Rate Ready testing for EGSs currently serving customers.
Schedule will be dependent on timely supplier response.
Applies only to EGSs who currently have consolidated billing method of Bill Ready.
No need for EGSs to test if they already have Rate Ready in desired operating company(ies).
If currently using Dual Billing only, EGS does not qualify for 30 day turn around time.
Must currently use Consolidate Billing.
New suppliers to the operating company do not qualify for this 30 day turn around time.
Supplier Webinar
March 20, 2019

15. Beginning EDI Testing
Supplier must send in a Supplier Communication Details Form
Form must contain
Supplier name
primary contact person’s name
EDI vendor’s information (if using EDI vendor)
DUNS+4 number
and indicate Rate Ready bill method.
Then, use FE Contact Us page as per normal procedure to attach the form
Supplier Webinar
March 20, 2019

16. Beginning EDI Testing
Make sure to include the following wording in the Comments box:
Supplier Webinar
March 20, 2019

17. Rate Request Process - % off Rates
FirstEnergy will be assigning % off rates to all PA suppliers that are currently certified for Rate Ready billing.
The % off rates will be available from 0 to 50% off the PTC in .5% increments.
Generic Rate Ready Rate Codes
Suppliers that are EDI testing for Rate Ready as part of DSP V, will be assigned % off rates as part of the testing process.
% off rate example:
GEN-G970
This would charge the customer 97% of the utility generation charges for that bill period.
Individual % off rate requests will follow the normal rate request process post the 6 month DSP V commitment.
Supplier Webinar
March 20, 2019

18. CRP Script Change – FE Contact Center
Changes were made to the CRP offer scripting for the FE Contact Center
Current Scripts:
On the questions tab:
In Pennsylvania, you can choose the company that provides your electricity without impacting the quality of service. Would you like to speak to a representative who can offer you a potential savings opportunity by enrolling with an electric generation supplier?
Summary tab scripting depends on answer selected:
If Yes: Are you satisfied with what I have done for you today? I have completed your order. With your permission, I will transfer you and your order information to our Connections program. They will provide you with a confirmation number, offer you potential rate savings through our Electric Choice Program, and help you to set up other services if needed.
If No: Are you satisfied with what I have done for you today? I have completed your order. With your permission, I will transfer you and your order information to our Connections program that will provide you with a confirmation number and also help you to set up other services if needed.
Supplier Webinar
March 20, 2019
Meeting Name
Location • Date

19. CRP Script Change – FE Contact Center
New Script:
Are you satisfied with what I have done for you today? I have completed your order. With your permission, I will transfer you to our vendor. They will offer you potential rate savings through our Electric Choice Program, and help you to set up other services if needed.
Supplier Webinar
March 20, 2019
Meeting Name
Location • Date

20. CRP Script Change - Vendor
Script as existing:
[CUSTOMER NAME], there are many registered electric suppliers doing business in the state of Pennsylvania and you have the option of choosing any of them. In an effort to encourage choice, the State Utility Commission has made the Standard Offer program available to you.
The program offer is a 7 % discount off the Price to Compare that you are currently paying with [EDC NAME] as your default service supplier. There are no fees for selecting an alternate supplier today or any penalties for changing suppliers before the 12 months are up.
The current Price to Compare rate for [EDC NAME] is [X.XX] cents per kilowatt-hour. The rate for this Standard offer is X.XXX cents per kilowatt-hour. The Standard Offer rate may be higher or lower than the price to compare and the percentage savings you will experience compared to [EDC NAME] supplier generation will vary as the price to compare changes. The price to compare changes quarterly in March, June, September and December, however your Standard Offer rate will remain the same for 12 billing cycles and is the same no matter which participating supplier you select.
Supplier Webinar
March 20, 2019
Meeting Name
Location • Date

21. CRP Script Change - Vendor
New script:
[CUSTOMER NAME], there are many registered electric suppliers doing business in the state of Pennsylvania and you have the option of choosing any of them. In an effort to encourage choice, the State Utility Commission has made the Standard Offer program available to you.
The program offer is a 7 % discount off the current Price to Compare that you are paying with [EDC NAME] as your default service supplier. There are no fees for selecting an alternate supplier today or any penalties for changing suppliers before the 12 months are up.
The current Price to Compare rate for [EDC NAME] is [X.XX] cents per kilowatt-hour. The rate for this Standard offer is X.XXX cents per kilowatt-hour. The Standard Offer rate may be higher or lower than the price to compare and the percentage savings you will experience compared to [EDC NAME] supplier generation will vary as the price to compare changes. The price to compare changes quarterly in March, June, September and December, however your Standard Offer rate will remain fixed the same for 12 billing cycles and is the same no matter which participating supplier you select.
You can cancel this contract anytime without penalty and select another supplier or return to default service with [EDC NAME] for service at the Price To Compare. I can enroll you with an approved supplier of your choice from our list or I can select one for you. Do you have questions? Do you agree to be enrolled with a supplier for this program?
Supplier Webinar
March 20, 2019

22. Questions
Supplier Webinar
March 20, 2019

23. Appendix
PA Supplier Workshop
March 20, 2019

24. Questions & Answers Will the presentation be available?
Yes - by , and also posted to the website.
When do suppliers have to give 30 day notice? Is it 30 days prior to June 1st? Would the 814 drop be sent at same time?
With accelerated switch, it would happen within 1 to 3 days so the intent is probably to provide 30 day notice first. Suppliers should verify with their own legal teams.
Is it possible that rates could change in vendor scripting by the time new supplier is enrolled (because a rate could change in 2 days)?
The scripting is by Commission order, so we are not able to change it.
How often will a Sync List be provided?
Same as today, the 2nd Sunday of every month. The first version with a CAP indicator is around April 15th.
How will a scenario be handled with a lag between Sync List and enrollment in CAP?
The Safe Harbor Rule protects the supplier against this.
A13 reject code, why this and not ANE?
We use the A13 code due to timing. It’s an existing programmed code which we will use with a different REF*03 description. We will go through PA EDI working group to align with other utilities as feasible.
Supplier Webinar
March 20, 2019

25. Questions & Answers
Have we contemplated updating the Sync List any more frequently to reduce lag time?
No, we haven't considered changing the Sync List schedule. The CAP indicator on the Account Lookup is in real time (also, the Safe Harbor Rule protects the supplier). Contact FE proactively if Sync List is needed before
Regarding the date for the CAP indicator - will a market notice be sent?
Yes, FE can.
On the final order, there is a workshop mandate for FE. Is this webinar the workshop?
Yes
Explain the %-Off approach to rates.
It ensures the customer is being billed for a price less than, or equal to, the PTC at any given time (no proactive tracking is needed for a low-income program customer).
See slide 17 of this presentation.
How will suppliers know if they're currently selling to a CAP customer now (i.e. door to door)?
Check the Eligible Customer List as of , but indicator is also on the customer’s utility bill.
Can an example of a CAP customer’s utility bill be provided?
Yes, we can provide (see slide 26 of this presentation).
Supplier Webinar
March 20, 2019

26. Questions & Answers
Here is an example of invoice showing a CAP customer’s identifying language printed in the charges section:
Supplier Webinar
March 20, 2019