Press Release

PUC Approves Default Service Plan for Citizens’ and Wellsboro Companies

Published on 2/25/2010

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a joint default service plan (DSP) for Citizens’ and Wellsboro Electric Companies.

The Commission voted 5-0 to approve the DSP for June 1, 2010 through May 31, 2013.  As part of the plan, the companies will choose a single portfolio manager to administer the schedules for competitive bid solicitations, and the schedules contained within the companies’ stratified procurement plan. 

In a statement, Chairman James H. Cawley said, “Going forward, the Companies should include unregulated hedging tools for risk management, but only to the extent that critical parameters and limitations are clearly articulated in such a future plan modification to protect ratepayers from excessive or imprudent hedging actions.” 

Vice Chairman Tyrone J. Christy issued a separate statement.

Commissioner Robert F. Powelson issued a statement saying, “I applaud the Companies’ outside-the-box thinking and encourage them to remain creative and aggressive in their power purchasing strategy.”

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-2009-2110798; P-2009-2110780

Contact:

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