PPL Electric Utilities Receives PUC Approval of Post-2010 Electricity Purchase Plan
June 18 2009 - 1:25PM
PR Newswire (US)
ALLENTOWN, Pa., June 18 /PRNewswire-FirstCall/ -- PPL Electric
Utilities has received approval for its plan to begin buying the
electricity its customers will need in 2011 and beyond and will
start the purchase process during this current period of relatively
lower wholesale market prices for electricity. The Pennsylvania
Public Utility Commission on Thursday (6/18) approved the company's
electricity purchase plan for 2011, 2012 and the first five months
of 2013. The plan will ensure a dependable option for customers who
don't shop for better deals in the market. "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." Pennsylvania law allows
customers to choose their generation provider. As a delivery
company, PPL Electric Utilities does not generate power. If
customers don't choose a generation provider, PPL Electric
Utilities must buy electricity supply for them and pass the costs
through without profit. Generation currently accounts for about
half of the typical electric bill. DeCampli said the company soon
will issue a request for bids for electricity needed for the first
five months of 2011. The company will then make many purchases over
time to minimize the risk of price spikes for its customers. The
company will buy electricity through a mix of long-term, short-term
and spot-market purchases. Beginning in 2011, generation prices for
residential and small-business customer rates will reflect a blend
of prices from these different purchases. Prices will then be
adjusted quarterly as they are today for customers of Pennsylvania
natural gas utilities. Large commercial and industrial customers
who do not choose an alternative supplier will be able to choose a
short-term, fixed-price option or hourly market rates for default
service starting in 2011. "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." PPL Electric Utilities' plan for 2011 and
beyond is separate from its PUC-approved plan for purchasing 2010
default supply. PPL Electric Utilities has been purchasing power
over several years for 2010 and has completed five of six
purchases. The final 2010 purchase will be completed this fall. The
company has hired NERA Economic Consulting, an independent third
party, to manage the bid process. Additional information is
publicly available at http://www.pplpolr.com/. Suppliers with
questions should e-mail or submit questions through the Web site.
PPL Electric Utilities Corporation, a subsidiary of PPL Corporation
(NYSE: PPL) that provides electricity delivery services to about
1.4 million customers in Pennsylvania, has consistently ranked
among the best companies for customer service in the United States.
More information is available at http://www.pplelectric.com/.
DATASOURCE: PPL Electric Utilities CONTACT: George Lewis of PPL
Electric Utilities, +1-610-774-5997 Web Site:
http://www.pplelectric.com/
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