The Public Utility Commission this week approved a retail aggregation bidding program for the Pike County Light & Power service territory that it hopes will reduce the 129 percent rate hike experienced by utility customers there.

The Commission action stemmed from unique circumstances that resulted in Pike County consumers experiencing unprecedented increases in rates. The initial wholesale auction process for purchasing power for those consumers was affected by many factors including the timing of the auction, which occurred during peak natural gas prices; minimal auction participants and no competitive retail activity in the area.

Retail aggregation programs pool electric consumers for the purpose of purchasing electric power collectively. An auction will be held next week to determine who will administer such a program for PCLP consumers. All participating bidders must demonstrate the capability to serve residential consumers by indicating adequate staffing at service centers to field questions from residential consumers.

After the Commission renews all of the bids, it may name a winning Electric Generation Supplier (EGS) on April 28.

Under the approved retail aggregation program, all Pike County Light & Power consumers will automatically be enrolled with the winning EGS. If they wish to remain with PCLP, consumers will have to opt-out of the retail aggregation program.

Consumers should begin to receive notifications and educational information on the program from PCLP and the winning EGS in May. Consumers can opt-out of the program at any time. Consumers will begin receiving service from the winning EGS the first part of June.

NewsClip: PUC Approves Plan to Lower Electricity Price

Link: PUC OKs Program to Help Pike Cope with 129% Electric Cost Increase

4/21/2006