Press Release

PUC Conducts Binding Poll on Default Service Implementation Plans from Citizens’, Wellsboro Electric Companies

Published on 8/30/2007

Filed under: Electric

HARRISBURG –The Pennsylvania Public Utility Commission (PUC) today conducted a binding poll on the issues related to the petition for approval of a default service implementation plan by Citizens’ Electric Co. and Wellsboro Electric Co.  

The result of the poll approves a plan where the company will hire a procurement administrator to judge whenever wholesale electric market conditions are best suited for purchasing energy for default service customers. The plan establishes certain guidelines, but the procurement specialist would be able to buy at his discretion within certain pre-defined limits. The plan covers default service provided from Jan. 1, 2008 to May 31, 2010.

Vice Chairman James Cawley made a motion on the issue that required the companies to establish a collaborative process to develop benchmarks and reporting requirements for those benchmarks within 60 days. The benchmarks will measure the effectiveness of companies’ purchases relative to other default service purchase strategies over the procurement period, including both the electricity costs and the administrative costs. Vice Chairman Cawley also issued a statement.

Commissioner Terrance Fitzpatrick abstained. Commissioner Tyrone Christy also abstained and issued a statement.

Citizens’ Electric serves about 5,420 residential customers and about 1,080 commercial and industrial customers in Union and Northumberland counties. Wellsboro serves about 4,845 residential customers and about 1,085 commercial and industrial customers in Tioga County.

The Commissioners based their findings on each issue on the record developed in the proceeding and the briefs and exceptions presented by the parties in the case.  Staff will craft an Order based on the results of the poll, and a Final Order then will be entered.

On May 18, 2007 and again on June 1, 2007, the companies filed a joint petition with the PUC for consideration of a default service implementation plan.  The companies also filed petitions asking for expedited consideration of the plan.

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 poll is designed to provide a mechanism for the Commission to resolve the contested issues of the case in a public forum. Commissioners base their findings on the record developed in the proceeding, the recommended decision from the presiding Administrative Law Judges and the briefs and exceptions presented by the parties in the case.

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, or more information about the PUC, visit our Internet homepage www.puc.state.pa.us.

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Docket No. P-00072306; P-00072307

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