Press Release

PUC Approves Settlement for PPL Default Service Implementation Plan

Published on 6/18/2009

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement for a default service program and procurement (DSP) plan for PPL Electric Utilities Corp.

The Commission voted 4-1 to approve a motion by Chairman James H. Cawley to adopt a settlement, which establishes the DSP plan for Jan. 1, 2011 through May 31, 2013. Vice Chairman Tyrone J. Christy dissented.

Under the settlement, the DSP plan’s request for proposals procurement process will be administered by an independent, third-party manager. The settlement was reached between the parties in the case including the company, the state’s Office of Consumer Advocate, the PUC Office of Trial Staff, the Office of Small Business Advocate and other formal complainants.

According to the settlement, PPL and interested parties will develop specific reporting mechanisms regarding the procurement process results. The settlement is structured around three separate procurement groups – residential, small commercial and industrial and large commercial and industrial – and provides a complete procurement plan for each group.

PPL also will include a revised purchase of receivables program.  The company is to make a one-time mailing by June 2010 to update customer information release preferences as part of its customer education plan.

PPL will convene a customer collaborative to discuss residential, small commercial and industrial direct mail referral programs.  PPL also will convene a collaborative to discuss a residential aggregation program. The results of both will be considered in the company’s next default service proceeding.

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 website at www.puc.state.pa.us.

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Docket No. P-2008-2060309

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