MPUC Standard Offer Rule Changes

 

On November 3, 2000 the Commission approved a change to the opt-out fee provision of the standard offer rule.  The change was necessary to correct an inadvertent consequence of recent changes to the rule.  These changes, adopted last August, were intended to reduce opportunities for strategic entry and exit between standard offer service and the market.  However, the Commission recently became aware that the rule changes created opportunities for customers to strategically enter the standard offer during the next several months when market prices appear likely to exceed standard offer prices.  Upon recognizing this potential, the Commission acted quickly to restore the rule to reflect its status at the time suppliers and customers made commitments for the current standard offer year.

 

The change was made pursuant to the Commission’s authority to adopt rules on an emergency basis.  Rules adopted on an emergency basis are temporary, and remain in effect for 90 days.  The amended standard offer rule and the Commission Order adopting the rule change are posted below.

 

New standard offer rule

 

Order approving revision

    Part I, November 3, 2000

    Part II, November 7, 2000

 

On November 13, the Commission opened a rulemaking to consider the opt-out provision to be effective after the emergency rule expires.   Notice of Rulemaking