Press Release

PUC: Retail Aggregation Bidding Program Results in Modest Savings for Pike County Light & Power Customers

Published on 4/28/2006

Filed under: Electric

HARRISBURG, Pa. – The Pennsylvania Public Utility Commission (PUC) today certified the results of a retail aggregation bidding program for the Pike County Light & Power (PCLP) service territory that will provide a modest savings for consumers.

          The average PCLP residential customer uses about 712 kwh per month. Their average monthly bill will decrease by 8.2 percent or about $10, going from $132 to $122. The savings may be as high as 28 percent for small commercial customers using less than 1,000 kwh a month.

          The savings were not as high as hoped for due to the recent escalation in commodity fuel markets such as oil and natural gas. The prices reflect, among other things, the overall volatility of the world energy market that consumers also are seeing at the gasoline pumps.

         The Commission continues, through its investigation, to look for long-term solutions of improving wholesale market access to PCLP customers. The Commission’s investigation results are expected to be released in the near future.

         The winning aggregator was Direct Energy Services, LLC. The Commission received two bids to provide service to about 4,500 PCLP consumers. Consumers should begin receiving educational materials from both Direct Energy and PCLP in the mail next week.

         Consumers with no forecasted savings will not be assigned to the retail aggregation program, but will remain PCLP customers. Those consumers may still choose to switch to Direct Energy. Consumers may leave the retail aggregation program at any time without penalty.

         The Commission has taken additional steps to encourage future participation in the PCLP service territory by waiving some rules, making it easier for Electric Generation Suppliers who are competing in the Orange & Rockland (PCLP’s parent company) territory in New York. If another competitive supplier enters the market, consumers are free to exit the retail aggregation program at any time, with no penalty.

            The savings under the retail aggregation program are driven by usage. The Commission urges consumers to continue with conservation efforts and to sign up for budget billing programs. Budget billing spreads monthly payments over the year allowing consumers to pay similar amounts each month. While the overall amount due at the end of the season will be the same, the amount due will be spread out over a greater period of time rather than over the winter months. This plan makes the amount due more predictable and affordable. It also is an effective way to deal with high electric bills.

            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 www.puc.state.pa.us.

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Docket Nos. P-00062205

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