Pennsylvania’s Standard Offer Program

Most Pennsylvania electric distribution companies (EDCs) offer residential and small business customers a choice to participate in a voluntary electric shopping program known as the Standard Offer Customer Referral Program.

Through this program, EDCs make available a standard offer to all residential and small business customers who have not shopped their electric generation with a competitive supplier, as well as customers who have already shopped yet inquire about the program. Depending upon market conditions, Standard Offer may not always be available in certain areas. Only EDCs that have competitive suppliers actively participating in Standard Offer at a given time can refer customers to the program.

The Standard Offer includes a fixed-rate price, 7 percent below the electric utility’s current Price to Compare (the price the utility pays for electricity), for a term of one-year with no cancellation or termination fees. A Standard Offer customer can cancel the agreement at any time.

Under the Standard Offer Program, EDCs refer certain customers calling the utility (such as those with high bill complaints) to a randomly selected retail electric supplier participating in the program. The supplier, or a third party acting on behalf of the supplier, must offer the customer a standard 7 percent discount versus the EDC’s currently effective Price-to-Compare (PTC), with such rate fixed for 12 months.

The Standard Offer Program may not be available in areas where no competitive suppliers are participating in the local utility’s program.

EXAMPLE: If an EDC’s current PTC is 10 cents per kilowatt hour (kWh), then the customer could enroll in the Standard Offer Program at 9.3 cents per kWh — a 7 percent discount off the PTC with the rate remaining fixed at that price for 12 months.

Terms and conditions of the standard offer are presented to customers before they decide to enter the program. The standard offer and its 12-month term are uniform for all customers within a rate class, within an EDC’s service territory. Customers who enroll with a participating supplier are free to leave the Standard Offer Program at any time during the 12 months with no termination/cancellation fee imposed.

All existing customer notification requirements apply, including notices relating to any proposed changes in the contract between the supplier and customer. Customers will receive contract renewal notices prior to the end of the standard offer period. At that time, they have three options:

• Remain with their current supplier;
• Switch to another competitive supplier; or
• Return to default service offered by their EDC.

If a customer fails to respond with one of these options, they will automatically remain with the current supplier on a month-to-month basis without any early termination fees.

View the latest updates on referrals and enrollments to the Standard Offer Program.

Standard Offer Program Fact Sheet

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