Pa.’s largest electric company seeks new protections for customers who shop for suppliers

Pennsylvania's largest electric company, FirstEnergy Pennsylvania, is seeking new safeguards for customers who shop for their energy supplier, arguing that the current system allows consumers to inadvertently pay higher rates. The company contends that existing regulations do not adequately ensure customers understand their contracts or that suppliers charge reasonable prices. FirstEnergy serves over 2 million customers across the state, including under the brands Met-Ed, Penelec, Penn Power, and West Penn Power.

The case before state utility regulators could lead to new guardrails for consumers, as the current system occasionally results in higher bills and greater risk of termination for residential customers. Under a landmark 1996 law, Pennsylvania residents can choose their electricity supplier, otherwise receiving service from their utility. However, choosing to shop has generally led to higher bills and increased termination risk.

FirstEnergy says it has seen a significant increase in customer complaints about suppliers in the past year. Administrative law judges overseeing the case have recommended the utility commission adopt FirstEnergy's proposed changes, though these recommendations are not binding. The commission will consider the recommendations at its October 22 public meeting.

The proposed changes address what consumer advocates have been raising for years, with FirstEnergy's arguments echoing these concerns. Elizabeth Marx, executive director of the Pennsylvania Utility Law Project, which represents low-income customers, stated that the changes would "fix some of the extractive loopholes in the market that suppliers take advantage of to jack up prices and confuse consumers."

Electricity bills in Pennsylvania have increased sharply due to rising demand and lagging new energy generation, leading to dramatic spikes in wholesale power prices.