Press Release

PUC Investigates Competitive Electric Market in Pike County to Protect Customers from High Rates

Published on 1/27/2006

Filed under: Electric

HARRISBURG -- The Pennsylvania Public Utility Commission (PUC) today voted to initiate an investigation into the competitive electric market in Pike County.  Pike County Light & Power Company (Pike County Power) customers have seen a 70 percent increase in electric rates. 

“The 70 percent increase in rates caused by the new default service energy acquisitions exceeds any electric rate increased allowed by this Commission, even when a new nuclear generation station was added to the rate base,” said Commissioner Bill Shane in his motion initiating this investigation.  “The Commission should not only monitor Pike County Power’s activities, but require a specific evaluation of their effectiveness.”

The Commission approved Pike County Power’s Default Service Implementation Plan, in August, which included procedures necessary to implement default service (for customers when alternative providers are not available) and establish Provider of Last Resort rates for all customer classes.  In October, Pike County Power implemented this plan by purchasing power via auction which led to 70 percent rate increases for electric customers.

Commissioner Shane’s motion, approved 5-0, directs the PUC’s Law Bureau to initiate a fact-finding investigation into the competitive electric market in Pike County Power’s service territory, which will look into attracting more and lower-cost choices for electric customers and making changes in the way power is purchased.

Commissioner Shane’s motion included a list of questions to answer in the upcoming investigation, which Vice Chairman James H. Cawley added to in his statement. 

“The resulting level of rates [from the auction] is unacceptable, and it should be plain to those responsible that we expect, one way or another, that they be ameliorated,” Vice Chairman Cawley said in his statement.

Commissioner Kim Pizzingrilli said in a statement, “By today’s action, the Commission intends to garner detailed information relative to the competitive electric market in the company’s service territory so that we may ensure that the transition to competitive retail markets is done consistent with Pennsylvania law and is in the public interest.”

Commissioner Terrance J. Fitzpatrick said in a statement, “There is no question that the Commission has satisfied its responsibility under the [Electricity Generation Customer Choice and] Competition Act to establish default generation prices that reflect ‘prevailing market prices.’  Given the understandable public concern over the price increases for Pike’s customers, it is reasonable for this Commission to make an extra effort to consider any appropriate, legally permissible options that may alleviate these generation prices.”

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition.

For recent news releases, or more information about the PUC, visit our Internet homepage at www.puc.state.pa.us.

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Docket No. P-00052168

Contact:

• Tom Charles
  Director of Communications
  717-787-9504
  thcharles@pa.gov