Press Release

PUC Conducts Binding Poll on Allegheny Power Default Service Implementation Plan

Published on 7/17/2008

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 West Penn Power Company (Allegheny Power).  

The poll is designed to provide a mechanism for the Commission to discuss the contested issues of the case in a public forum. Commissioners base their findings on the record developed in the proceeding, testimony from the parties in the case, the recommended decision from the presiding Administrative Law Judge 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.

The result of the poll largely affirms with revisions the Administrative Law Judge’s decision, which modified the plan, filed as a petition by Allegheny Power on Oct. 25, 2007, to procure power through a request for proposal structure.  Through its polling today, Allegheny is directed to purchase power using 12-, 17- and 29-month contracts and spot-market purchases, to mitigate the impact of price spikes in the competitive market.  The plan includes a rate increase mitigation option that would allow customers to defer portions of a large rate increase for as long as three years.  The plan covers default service provided beginning Jan. 1, 2011, and ending May 31, 2013.

Allegheny Power provides electric transmission and distribution service to approximately 703,000 customers in 23 counties in Southwestern, South Central and North Central Pennsylvania. 

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’s restructuring proceedings.  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 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. P-00072342

Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov