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PUC Approves Settlement For PPL Competitive Electric Procurement Implementation Plan
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The Public Utility Commission this week approved a settlement for a default service program and electricity procurement plan for PPL Electric Utilities Corp.
The Commission voted 4-1 to approve a motion by Chairman James H. Cawley to adopt a settlement, which establishes the DSP plan for Jan. 1, 2011 through May 31, 2013. Vice Chairman Tyrone J. Christy dissented.
Under the settlement, the DSP plan's request for proposals procurement process will be administered by an independent, third-party manager. The settlement was reached between the parties in the case including the company, the state's Office of Consumer Advocate, the PUC Office of Trial Staff, the Office of Small Business Advocate and other formal complainants.
"We're pleased with the PUC's decision and will soon begin the process of buying electricity supply for our customers at the current, relatively low prices for 2011," said David G. DeCampli, president of PPL Electric Utilities. "The lower the prices we get in these purchases, the lower the electric bills will be for customers who don't pick an alternative electricity supplier."
"We expect that our customers will have more choices, and we're starting to see signs of that now," DeCampli said. "Alternative suppliers have already begun approaching some of our customers. For years, suppliers facing present-day costs have been unable to compete with capped 1990s prices. That will change beginning in 2010, and we encourage all of our customers to research alternative suppliers and pursue the best deal for their needs."
According to the settlement, PPL and interested parties will develop specific reporting mechanisms regarding the procurement process results. The settlement is structured around three separate procurement groups – residential, small commercial and industrial and large commercial and industrial – and provides a complete procurement plan for each group.
PPL also will include a revised purchase of receivables program. The company is to make a one-time mailing by June 2010 to update customer information release preferences as part of its customer education plan.
PPL will convene a customer collaborative to discuss residential, small commercial and industrial direct mail referral programs. PPL also will convene a collaborative to discuss a residential aggregation program. The results of both will be considered in the company's next default service proceeding.
The 1996 electric competition law requires electric companies, or a Commission-approved alternative supplier, to provide default electric generation service to customers who have not selected an alternative generation supplier. The default service prices for electric generation service are required to result in a procurement strategy to produce the least cost to customers over time.
Visit the PUC's Electric Price Mitigation webpage for more information.
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6/19/2009 |
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