Press Release

Commissioner Expresses Disappointment in Pike County Auction Results, Vows to Continue Looking for Alternatives for Consumers

Published on 5/4/2006

Filed under: Electric

HARRISBURG, Pa. – Expressing his disappointment in the modest savings provided by a retail aggregation program for Pike County Light and Power customers (PCLP), Pennsylvania Public Utility Commissioner Bill Shane today committed to continuing to search for alternatives for PCLP customers.

“Despite the good intentions and significant efforts of all involved, the results have been personally disappointing,” said Commissioner Bill Shane in a statement. “Most of the consumers will see some marginal savings compared to Pike’s default service rates. However, several hundred residential and commercial customers may experience higher rates in 2007. It is obvious to me that the status quo cannot provide any reasonable relief for Pike’s customers.”

Commissioner Shane also re-emphasized that he is not willing to “abandon the Pennsylvania customers” of this multi-state utility saying that he is looking forward to the opportunities presented in the Commission’s fact-finding proceeding.

“As we proceed, I will explore Commission precedents involving the setting of temporary rates and the transfer of service territories,” Commissioner Shane said. “It appears that there may be other alternatives to an interconnection to the PJM Regional Transmission Organization through First Energy or Sussex Rural Electric Cooperative, which should be explored further. Based upon information conveyed to me, Pike has refused to talk with Sussex.”

In response to the high rates in Pike County, the Commission launched a fact-finding inquiry in order to look for long-term solutions for improving wholesale market access to PCLP customers. The Commission’s investigation results are expected to be released in the near future.

On April 28, 2006, the Commission 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 residential customer will save about $10 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 also took 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 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 website at www.puc.state.pa.us.

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Docket Nos. P-00062205

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