Welcome!

News Feed Item

Direct Energy Advocates for Retail Market Improvements for Customers in Pennsylvania

Energy supplier adds price protection to its current residential electric variable rates in Pennsylvania

HARRISBURG, Pa., March 13, 2014 /PRNewswire/ -- The impacts of the recent, unprecedented Polar Vortex have highlighted the potential for improvements so that customers are better protected from extraordinarily high energy bills during short term market events. Direct Energy, North America's largest energy and energy-related services provider, is announcing today that effective April 1, the Company will add a price protection feature to its current residential electric variable rates in each Pennsylvania utility service area in which the Company serves. This will provide Direct Energy variable customers with the flexibility of a month-to-month plan with protection against extraordinary price spikes.

Direct Energy Logo.

With this new residential electric variable rate protection, Direct Energy is providing the highest level of price protection available for residential electric variable rates in Pennsylvania today. While these price protection levels are above Direct Energy's current residential electric rates, these price protection levels represent the maximum variable residential electric rates Direct Energy would charge in Pennsylvania in the event of another round of unforeseen and unexpected extreme market volatility.

Direct Energy's maximum residential electric variable price protection levels range from 11.2 cents per kilowatt-hour to 14.5 cents per kilowatt-hour for the Pennsylvania utility areas in which the Company serves customers. The Company is committing to these price protection levels for a six month period. The utility areas are as follows:


Duquesne Light Company:

13.0 cents per kilowatt-hour


Metropolitan Edison Company (MetEd):

12.2 cents per kilowatt-hour


PECO Energy Company:

14.5 cents per kilowatt-hour


Penn Power:

11.3 cents per kilowatt-hour


Penelec:

12.2 cents per kilowatt-hour


Pike County Light & Power Company:

14.2 cents per kilowatt-hour


PPL Electric Utilities:

13.7 cents per kilowatt-hour


West Penn Power:

11.2 cents per kilowatt-hour

By offering this level of price certainty, Direct Energy will continue to serve its customers with competitive pricing which will not exceed the price protection levels during this six month period.

After the initial six month variable price protection period ends, to the extent that Direct Energy determines it needs to adjust these price protection levels, Direct Energy will provide its residential customers with a minimum of 30 days advance notice of any proposed change to enable those customers to determine which plan is right for them.

Direct Energy has been working closely with stakeholders to enhance the competitive marketplace across the Commonwealth. In addition to its voluntary actions announced today, Direct Energy is proposing the following improvements to the state's competitive retail energy market to enable customers to have both choice and control of their energy bills:

  • A new standard for retail suppliers to offer residential variable electric rates with price protection. Direct Energy believes that all retail suppliers should provide a specific cents-per-kilowatt-hour maximum variable rate for any residential variable electric price products and provide customers 30 days advance notice of any changes the retail supplier makes to that price protection level. This gives customers the ability to make better budgeting, shopping and switching decisions. 
  • Clearer customer disclosures. Direct Energy believes all suppliers should be required to identify and communicate clearly to customers all pricing and term information, any early termination penalties and the details for how the supplier will serve the customer after the expiration of any initial contract period.
  • Minimize delay when changing suppliers. Currently, when a customer wants to change suppliers, the process can take one to two billing cycles to complete. Direct Energy supports working with stakeholders to make efforts to ultimately move to a same-day switch model, but in the interim work toward a target of three to five days.

    Full smart meter deployment. Smart meters enable retail suppliers like Direct Energy to offer advanced products and services. This not only fosters greater customer engagement but also gives customers fuller control of their energy usage and bills. Direct Energy already offers several innovative products that use smart technology to help customers manage their energy use, which can be particularly helpful during unpredictable weather conditions. Full smart meter deployment would enable Direct Energy and other suppliers to offer more of these types of products and services across the state.

  • Wholesale market risk allocation.  Direct Energy believes that certain underlying wholesale market conditions and infrastructure constraints need to be addressed to mitigate the impacts of extreme weather events, such as the Polar Vortex or other situations, on end use customers. The Company is advocating that the emergency costs needed to run the system in these types of situations be included in the locational marginal price to give prudent retailers the opportunity to plan ahead and minimize the impact to customers.    

"Direct Energy has listened to our customers and we believe these proposed improvements will make the retail market a more simple, friendly and direct environment for all customers to better realize the benefits of competition," said Manu Asthana, president of Direct Energy's residential business. "In addition to these priority areas, Direct Energy also supports enhancements that include increasing the financial fitness standards for retail suppliers, stronger enforcement against suppliers and sales representatives that violate customer protection regulations, and new measures to promote fixed price contracts."

"We continue to work to provide integrated home services and cost-effective energy products within competitive markets because we understand the benefits they can bring to our customers," Asthana added.

In Pennsylvania, Direct Energy has more than 286,000 customer relationships. The Company has grown employment levels to more than 1,000 people with corporate offices in Pittsburgh and Harrisburg. It also has 29 home services franchise offices throughout the Keystone state operating under the names One Hour Heating and Air Conditioning, Heating and Air Conditioning, Mister Sparky and Benjamin Franklin Plumbing. 

Notes:

  • The residential electric variable rate price protection does not include incremental services procured including but not limited to:  green products, rewards, home services, or other non-energy related items.
  • The residential electric variable price protection levels are the absolute highest rates pending any future regulatory or legislative changes that impose greater costs on retailers

About Direct Energy

Direct Energy is one of North America's largest energy and energy-related services providers with six million residential and commercial customer relationships. Direct Energy provides customers with choice and support in managing their energy costs through a portfolio of innovative products and services. A subsidiary of Centrica plc (LSE:CNA), one of the world's leading integrated energy companies, Direct Energy operates in 46 U.S. states plus the District of Columbia and 10 provinces in Canada. www.directenergy.com     

Logo - http://photos.prnewswire.com/prnh/20121004/MM87276LOGO     

SOURCE Direct Energy

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet and...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of D...
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, will explore the value of Kibana 4 for log analysis and will give a real live, hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He will examine three use cases: IT operations, business intelligence, and security and compliance. This is a hands-on session that will require participants to bring their own laptops, and we will provide the rest.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...