Press Release

PUC Approves Plan for Met-Ed, Penelec to Acquire Electricity Supply for Use after 2010 Expiration of Rate Caps

Published on 11/6/2009

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement for the default service programs (DSP) for Metropolitan Edison Co. and Pennsylvania Electric Co.

The Commission voted 3-1 to approve the settlement among the companies, Office of Consumer Advocate, Office of Small Business Advocate, Retail Energy Supply Association and other formal complainants.  Commission Chairman James H. Cawley issued a statement. Commission Vice Chairman Tyrone J. Christy issued a dissenting statement.

Under the settlement, the DSP will have a 29-month term, beginning Jan. 1, 2011, and ending May 31, 2013. The companies will:

• Include competitive procurement plans that provide for a mix of spot purchases, short- and long-term contracts, including using a descending clock auction to procure the full-requirements component of the supply mix and requests for proposals;
• Include a mix of supply resources that is designed to obtain least cost generation supply contracts on a long-term, short-term and spot market basis;
• Conduct a separate solar procurement process designed to meet the solar photovoltaic requirement for the duration of the programs.

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 Nos. P-2009-2093053; P-2009-2093054

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