Chapter 1 Certified Supplier Guidebook
Certified Supplier Guidebook Chapter 1: The Electric Marketplace Introduction
Ohio’s customer choice law, which was signed by Gov. Bob Taft on July 6, 1999, provides for electric competition. The customer choice legislation fundamentally changed the way Ohio consumers purchase electricity. Traditionally, electricity has been sold as a packaged product with one rate covering the costs of generation (electric commodity), transmission, distribution, and ancillary services. As of January 1, 2001, customers are able to buy electricity and certain ancillary services competitively from suppliers other than Duke Energy. Duke Energy continues to provide the regulated functions of transmitting and distributing electricity to end-use customers.
Chapter 1 provides a brief overview of the roles and relationships in the competitive marketplace and includes these topics:
- Duke Energy's Role in Generation
- Duke Energy's Role in Transmission
- Duke Energy's Role in Distribution
- Utility Code of Conduct
- The Transmission Scheduling Agent's Role in Transmission
- The Certified Supplier's Role in the Marketplace
- The Certified Supplier's Code of Conduct
- The End-Use Customer's Role in the Marketplace
- Duke Energy's and Certified Supplier's Roles in End-Use Customer Inquiries and Requests for Information
Duke Energy’s Role in Generation
On December 28, 1999, Duke Energy (formerly CG&E) filed its transition plan with The Public Utilities Commission of Ohio to implement Ohio’s electric industry customer choice legislation effective January 1, 2001. The unbundling portion of Duke Energy’s transition plan provides for separate rates for generation, transmission, distribution, and ancillary services. The initial stage of Ohio Electric Choice, called the Market Development period (MDP), expired for non-residential customers on December 31, 2004 and for residential customers on December 31, 2005. The new Market-Based Standard Service Offer (MBSSO) for non-residential customers, began on January 1, 2005 and ended December 31, 2008. On December 17, 2008, the Commission approved Duke Energy's Electric Security Plan-Standard Service Offer (ESP-SSO) to replace the MBSSO. The plan requests recovery of costs for fuel used to generate electricity, electricity purchased wholesale, emission allowances and federally mandated carbon taxes. The goals of the plan include price stability, ensuring an adequate supply of electricity, promoting economic development, job retention, energy efficiency and conservation. The plan will be in effect through December 31, 2011. Duke Energy will continue to provide electric commodity service to retail end-use customers in its service area on a regulated (tariff) basis and will provide electric commodity service as the default supplier for those end-use customers who return to Duke Energy's generation service from a certified supplier.
Duke Energy's Role in Transmission
Transmission service is and will continue to be regulated by the Federal Energy Regulatory Commission (FERC). Duke Energy is a member of and participant in the Midwest Independent System Operator, Inc.(MISO), which received approval by FERC as a Regional Transmission Organization (RTO). Effective February 1, 2002, any transmission related services for transactions previously provided under the Cinergy Open Access Transmission Tariff (Cinergy OATT) are provided under the Midwest ISO Open Access Transmission Tariff (MISO OATT). However, portions of the Duke Energy OATT involving certain ancillary services and losses remain in effect since the MISO OATT references certain ancillary services and loss factors being provided under other OATT’s. The Transmission Scheduling Agent (TSA) will be billed for transmission services and the appropriate ancillary services. This entity will agree to pay such amounts in accordance with the terms and conditions of the applicable Open Access Transmission Tariff (OATT). This arrangement will ensure that all generation suppliers have non-discriminatory access to the transmission system to transmit electricity to consumers and to maintain the balance between the supply and demand for electricity. Duke Energy will continue to have the responsibility for the reliability and safety of its transmission system assets.
Duke Energy’s Role in Distribution
Duke Energy continues to own and operate the regulated distribution facilities in its service area and continues to be responsible for the reliability and safety of the distribution of electricity. Duke Energy provides certified suppliers and TSAs with impartial information on distribution services to ensure that energy suppliers have the appropriate resources for participating in the electric marketplace. As part of its distribution role, Duke Energy provides the following services to customers:
- Metering services (ownership, installation, removal, calibration, testing, and maintenance)
- Meter reading and usage data management
- Billing and related services (call centers, account set-up and maintenance, bill generation and payment processing)
Duke Energy will abide by the PUCO's code-of-conduct:
- Duke Energy will not release any proprietary customer information (e.g., individual customer load profiles or billing histories) to an affiliate, or otherwise, without the prior authorization of the customer, except as required by a regulatory agency or court of law.
- Duke Energy will make customer lists, which include name and address, available on a nondiscriminatory basis to all nonaffiliated and affiliated certified retail electric competitors transacting business in its service territory unless otherwise directed by the customer. This paragraph does not apply to customer-specific information, obtained with proper authorization, necessary to fulfill the terms of a contract, or information relating to the provision of general and administrative support services.
- Employees of Duke Energy's affiliates shall not have access to any information about the electric utility’s transmission or distribution systems (e.g., system operations, capability, price, curtailments, and ancillary services) that is not contemporaneously and in the same form and manner available to a nonaffiliated competitor of retail electric service.
- Electric utilities shall treat as confidential all information obtained from a competitive supplier of retail electric service, both affiliated and nonaffiliated, and shall not release such information unless a competitive supplier provides authorization to do so.
- Duke Energy will not tie (nor allow an affiliate to tie) or otherwise condition the provision of the electric utility’s regulated services, discounts, rebates, fee waivers, or any other waivers of the electric utility’s ordinary terms and conditions of service, including but not limited to tariff provisions, to the taking of any goods and/or services from the electric utility’s affiliates.
- Duke Energy will ensure effective competition in the provision of retail electric service by avoiding anti-competitive subsidies flowing from a noncompetitive retail electric service to a competitive retail electric service or to a product or service other than retail electric service, and vice versa.
- The electric utility, upon request from a customer, shall provide a complete list of all certified suppliers operating on the system, but shall not endorse any certified suppliers nor indicate that any certified supplier will receive preference because of an affiliate relationship.
- An electric utility shall ensure retail electric service consumers protection against unreasonable sales practices, market deficiencies, and market power.
- Duke Energy will provide comparable access to products and services related to tariffed products and services and specifically comply with the following:
- Duke Energy will be prohibited from unduly discriminating in the offering of its products and/or services
- Duke Energy will apply all tariff provisions in the same manner to the same or similarly situated entities, regardless of any affiliation or non-affiliation
- Duke Energy will not, through a tariff provision, a contract, or otherwise, give its affiliates preference over nonaffiliated competitors of retail electric service or their customers in matters relating to any product and/or service
- Duke Energy will strictly follow all tariff provisions
- Except to the extent allowed by state law, Duke Energy will not be permitted to provide discounts, rebates, or fee waivers for any state regulated monopoly service
- Notwithstanding any provision of this rule, in a declared emergency situation, an electric utility may take actions necessary to ensure public safety and system reliability. Duke Energy will maintain a log of all such actions that do not comply with this rule, which log shall be subject to review by the PUCO.
The Transmission Scheduling Agent’s Role in Transmission
The TSA is a transmission customer in accordance with the applicable Open Access Transmission Tariff (OATT). The certified supplier may choose to be its own TSA or may contract with a TSA for wholesale power services. The TSA will contract for transmission services. The TSA will schedule power and energy in accordance with the applicable OATT. Settlement will be conducted with the TSA.
The Certified Supplier’s Role in the Marketplace
In the competitive electric marketplace, certified suppliers will sell electric energy to the end-use customer pursuant to contractual arrangements that are not part of Duke Energy’s tariffs. Duke Energy is not a party to such sale of electric power and energy to the end-use customer taking service from a certified supplier and shall not be bound by any term, condition, or provision of agreement for such sale. The certified supplier, acting either directly or through a TSA, will arrange for transmission services and appropriate ancillary services with the transmission provider or an alternate third party provider to be used in the transmission and distribution of electric power to the end-use customer. The certified supplier will enter into a service agreement with Duke Energy.
The Certified Supplier’s Code of Conduct
Each certified supplier participating in Ohio’s Customer Choice Program is required to refrain from engaging in marketing, solicitation, sales acts, or practices which are unfair, misleading, deceptive, or unconscionable in the marketing, solicitation, or sale of a certified supplier service. Such unfair, misleading, deceptive, or unconscionable acts or practices include, but are not limited to, the following:
- Marketing, solicitation, or sale of a competitive retail electric service:
- After suspension, rescission or conditional rescission of a certification by the PUCO
- After denial of certification renewal by the PUCO
- Failing to provide pricing information to residential and small commercial end-use customers as required by the PUCO's rules
- Failing to provide in or with its advertisements and promotional materials that make an offer for sale a toll-free/local telephone number (or address for printed materials) which the end-use customer may call or write to request detailed information regarding the price, terms, conditions, limitations, restrictions and, if applicable, environmental characteristics of the service offered
- Soliciting through telephonic means without first:
- Obtaining the list of consumers who have requested to be placed on a "do not call" list, and
- Obtaining updated copy of the "do not call" list quarterly
- Engaging in telephone solicitation of end-use customers who have been placed on the "do not call" list
- Engaging in telephone solicitation to residential customers either before 9:00 a.m. or after 9:00 p.m. Eastern Standard Time
- Engaging in direct solicitation to residential customers where the certified supplier's sales agent fails to wear and display a valid certified supplier photo identification
- Advertising or marketing offers that:
- Claim a specific price advantage, savings, or guarantee exists if it does not
- Claim to provide a competitive retail electric service when such an offer is not a bona fide offer to sell such services
- Offer a specific price for competitive retail electric service without disclosing the cost per kilowatt hour and all recurring and non-recurring charges
- Offer a variable-priced competitive retail electric service without disclosing all recurring and non-recurring charges
- Fail to disclose all material limitations, exclusions, and offer expiration dates
- Marketing, advertising, or claiming that the environmental characteristics of any generation service energy source(s) provides an environmental advantage that does not exist
The End-Use Customer’s Role in the Marketplace
Ohio end-use customers are able to choose their electric suppliers. The selected certified supplier will supply the power while the electric utility company will distribute it to end-use customers through its wires. To be eligible to choose an electric supplier, the end-use customer must:
- Have an active electric service account with Duke Energy
- Not be a Percentage of Income Payment Plan (PIPP) customer.
- Comply with any applicable Duke Energy requirements for switching to a certified supplier
Participation is voluntary for all end-use customers. An end-use customer may choose to stay with Duke Energy or choose to obtain a certified supplier pursuant to contractual arrangements for electric supply.
Duke Energy’s and Certified Supplier’s Roles in End-Use Customer
Inquiries and Requests For Information
End-Use Customer Requests for program information and/or usage data:
- End-use customers may contact Duke Energy in order to request information on our Customer Choice Program.
- Upon request, end-use customers will be mailed a current list of certified suppliers that have registered with Duke Energy.
- The list of certified suppliers that have registered with Duke Energy is posted on Duke Energy’s designated website. The list of certified suppliers that have registered with Duke Energy contains suppliers currently registered to enroll end-use customers in Duke Energy’s service area. The list of certified suppliers that have registered with Duke Energy will also designate, if available, which customer classes certified suppliers will be serving.
- End-use customers may contact Duke Energy by phone, mail, or website and request their twelve-month historical usage data.
- End-use customer inquiries concerning Duke Energy’s charges or services should be directed to Duke Energy.
- End-use customer inquiries concerning the certified supplier’s charges or services should be directed to the certified supplier.
Inquiries related to emergency situations and outages:
- Duke Energy will be responsible for responding to all inquiries related to transmission and distribution service, emergency system conditions, outages and safety situations. End-use customers contacting the certified supplier with such inquiries should be referred directly to Duke Energy.
- It may be necessary for Duke Energy to curtail or shed end-use customer load at the request of the Cinergy control area operator, the Midwest ISO or as otherwise provided by PUCO approved tariffs. In such cases, Duke Energy will follow the provisions of our Bulk Power Emergency Plan and our Storm and Natural Disaster Plan filed with the PUCO.
