Press Release

PUC Approves Settlement for Pike County Light & Power Default Service Implementation Plan

Published on 2/5/2009

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement for a default service implementation plan for Pike County Light & Power (PCLP).

The Commission voted unanimously to approve a motion by Commission Chairman James H. Cawley that authorizes a settlement to extend the fixed-price aggregation program provided by Direct Energy for an additional 2 years starting June 1, 2009. It also provides for a back-stop, spot-based default service with quarterly-price adjustments for those customers who chose that option during this extension period. The settlement was reached between the parties in the case including PCLP, the state’s Office of Consumer Advocate, the PUC Office of Trial Staff and other formal complainants.

Commission Vice Chairman Tyrone J. Christy issued a statement.

“We commend the parties for their diligent work in resolving the immediate issues in this proceeding and for recognizing that settling this case quickly would provide Direct Energy the opportunity to take advantage of securing lower energy prices for the majority of Pike’s customers,” said Commissioners Robert F. Powelson and Wayne E. Gardner in a joint statement. “We are hopeful that parties to all future EDC default service proceedings will act in a similar manner.”

In April 2006, the PUC approved an aggregation program where all PCLP customers were automatically enrolled with a competitive supplier. The aggregation program pooled PCLP electric consumers for the purpose of purchasing electric power collectively. Customers could opt-out of the aggregation program and remain with PCLP.

On May 30, 2008, PCLP filed a petition for approval of a new default service plan whereby the company will secure its default service supply. The plan is designed to replace a 17-month default service implementation plan, which began on Jan. 1, 2008 and will end May 31, 2009.

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.  The default service prices for electric generation service are required to result in a procurement strategy to produce the least cost to customers over time. 

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-2008-2044561

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