Press Release

PUC Approves Rate Adjustments for Citizens’ and Wellsboro Electric Companies

Published on 3/1/2007

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved new default service rates for Citizens’ Electric Co. and Wellsboro Electric Co.

Citizens’ Fixed Generation Supply Service Rate (Fixed GSSR) will go to 5.2638 cents per kWh, an increase of about .0187 (.35 percent). The bill for the average residential customer using 500 kWh a month will increase about 9 cents from $38.31 to $38.40. The new rates take effect March 1, 2007. Citizens’ serves about 6,560 customers in Union County.

Wellsboro’s Fixed GSSR will go to 5.6559 cents per kWh, a decrease of about .0267 cents (.46 percent). The bill for the average residential customer using 500 kWh a month will decrease about 13 cents from $48.03 to $47.90. Wellsboro serves about 5,900 customers in Tioga County.

The changes to the Fixed GSSR reflect updated estimates to forecast costs and sales, which are then reflected in the rates. The Fixed GSSR is based upon the total amount of annual estimated purchased power costs, plus the total annual estimated administrative charges associated with the purchasing of generation supply to serve the default service customers divided by the projected total kWh sales for the application period.

The Commission reviews the companies’ filings to verify computations; ensure the proposed rates reflect the energy contract prices and Federal Energy Regulatory Commission approve tariff rates; and determine that the filings are in compliance with the default service riders and Commission orders. Electric generation prices are not set by the PUC, but rather are set by the wholesale market, over which the PUC exercises no jurisdiction.

The 1996 electric competition law requires electric companies, or a Commission approved alternative supplier, to provide default electric generation service to customers who have not selected an alternative generation supplier. This is commonly called default service or provider of last resort service (POLR). The default service prices for electric generation service are required to reflect “prevailing market prices,” according to the law.

The generation rates for the state’s electric customers were capped as a result of settlement agreements reached during the state restructuring proceedings. Citizens’ rate caps expired in December 2003. Wellsboro’s rate caps expired in December 2002. The default service plans for both companies calls for the generation rates to be updated annually.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner. For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket No. R-00072126; R-00072125

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• Press Secretary
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