misperceptions that shopping poses an unacceptable risk that customer could pay more than the PTC. Id. Positions of the Parties RESA proposed the use of a fixed pre-determined signing bonus amount to be determined by the Commission in consultation with EGSs, the EDC and a market consultant, with the goal of trying to make the ROI Aggregation Program as successful as possible in terms of overall value delivered to customers. RESA further proposed that customers should be required to stay with the selected EGS for at least three months before the bonus is paid. RESA St. 2 at 20. ALJ’s Recommendation The ALJ agreed with the Companies’ concerns and found the Companies’ testimony to be credible that the current market conditions show that a fifty dollar bonus plus a fixed price of at least five percent below the PTC is likely to be merely a “loss leader” and not a sustainable price. She also was persuaded by the Companies’ contention that if customers have an unsatisfying experience in the ROI Aggregation Program because they believe they were enticed to participate by short-term “gimmicks” that they perceive as a form of and switch,” the EDCs’ reputations may be tarnished “bait because of their involvement in the process that selected EGSs to participate in the program. R.D. at 107-108. Therefore, the ALJ recommended that the Commission find that the Companies’ decision to exclude a provision from their ROI Aggregation “bonus” Program is a justifiable departure from the Commission’s guidance regarding bonus offerings. at 6-7; R.D. at 108. IWPF Order
misperceptions that shopping poses an unacceptable risk that customer could pay more than the PTC. Id. Positions of the Parties RESA proposed the use of a fixed pre-determined signing bonus amount to be determined by the Commission in consultation with EGSs, the EDC and a market consultant, with the goal of trying to make the ROI Aggregation Program as successful as possible in terms of overall value delivered to customers. RESA further proposed that customers should be required to stay with the selected EGS for at least three months before the bonus is paid. RESA St. 2 at 20. ALJ’s Recommendation The ALJ agreed with the Companies’ concerns and found the Companies’ testimony to be credible that the current market conditions show that a fifty dollar bonus plus a fixed price of at least five percent below the PTC is likely to be merely a “loss leader” and not a sustainable price. She also was persuaded by the Companies’ contention that if customers have an unsatisfying experience in the ROI Aggregation Program because they believe they were enticed to participate by short-term “gimmicks” that they perceive as a form of “bait and switch,” the EDCs’ reputations may be tarnished because of their involvement in the process that selected EGSs to participate in the program. R.D. at 107-108. Therefore, the ALJ recommended that the Commission find that the Companies’ decision to exclude a “bonus” provision from their ROI Aggregation Program is a justifiable departure from the Commission’s guidance regarding bonus offerings. IWPF Order at 6-7; R.D. at 108.
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