Fixed to Firm
By: Thomas Eynon Posted: February 16, 2017 2:47 pm UTC

For Our Ohio Customers:

The PUCO dictated changes to how retail suppliers market FIXED offerings when the customer price per kwh can change due to a rare, extreme, unforeseen situation such as a disaster, pass through provisions, or change in law. The order dictates that any contract or marketing that declares a price as fixed cannot change, regardless of pass thru or CIL language. 

Therefore, if there is a rare, extreme, unforeseen situation such as a disaster, any product with reference to a pass thru, or Change in Law provision, it must be marketed as a VARIABLE or FIRM product or introductory term.

This ruling impacts all current Fixed offerings for C&I and Small Commercial customers. In addition, should Direct Energy choose to pass a CIL to customers with fixed supply, active consent is required per customer before passing through any changes.

What is changing?

·Billing update: Customer invoices for all current fixed offerings will reflect new line item language.

·         Fixed Price will now read Purchase Price to align with contract language.

·         Fixed Adder will be abbreviated to Adder to align with contract language.

·Legal update: Transaction confirmations will reflect new language. The current CMA’s will not change.

·         Fixed will now be referenced as FIRM or FIRM VARIABLE.

§ As an example, the current FIXED EXCLUDING CAPACITY header will now be called OH FIRM VARIABLE CAPACITY.

·         Within the Purchase Price language on the Transaction Confirmation, there is a clear call out that this is a variable or firm product.

We will be removing the term Fixed in individual communications with prospects, customers and brokers and will reference Purchase Price or Firm price in these communications when sending pricing out in the OH market.

We are required to comply and have done so. All of the above situations are rare and should not be a major concern for our partners.

Here is the web address link to the existing rule for those interested: http://codes.ohio.gov/oac/4901:1-21-05

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