Press Release

PUC Approves Rate Adjustments for Citizens’ and Wellsboro Electric Companies

Published on 3/25/2010

Filed under: Electric

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today approved new default service rates for Citizens’ Electric Co. and Wellsboro Electric Co.

The Commission voted 4-0 to approve the rates.  Citizens’ Generation Supply Service Rate (GSSR) will be $.090550 per kWh, an increase of about $.007863 per kWh (9.51 percent).  The monthly bill for the average residential customer using 500 kWh a month will increase $3.94  from $41.34 to $45.28.  The new rates take effect April 1, 2010.  Citizens’ serves about 6,560 customers in Union County.

Wellsboro’s GSSR will be $.086542 per kWh, an increase of about $.013525 per kWh (18.52 percent).  The monthly bill for the average residential customer using 500 kWh a month will increase by $6.76 from $36.51 to $43.27.  Wellsboro serves about 5,900 customers in Tioga County.

The changes to the GSSRs reflect updated estimates to forecast costs and sales, which are then reflected in the rates.  The GSSR is based upon the quarterly estimated purchased power costs, plus the estimated administrative charges associated with the purchasing of generation supply to serve the default service customers and the prior period’s over/under collections, divided by the projected kWh sales for the application period.

The Commission reviews the companies’ filings to verify computations; ensure the proposed rates reflect the energy contract prices and Federal Energy Regulatory Commission-approved tariff rates; and determine that the filings are in compliance with the company tariffs and Commission orders.  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 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 generation rates for the state’s electric customers were capped as a result of settlement agreements reached during the state restructuring proceedings.  Citizens’ rate caps expired in December 2003.  Wellsboro’s rate caps expired in December 2002.  The default service plans for both companies calls for the generation rates to be updated quarterly.

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 Nos. M-2010-2161721 and M-2010-2161730

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