Press Release

PUC Fines PPL Electric Utilities $1,000 for Violation of Public Utility Code

Published on 4/22/2010

Filed under: Electric

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today voted to fine PPL Electric Utilities for violating the Public Utility Code.

The Commission voted 3-1 to approve a motion by PUC Commissioner Wayne E. Gardner fining the company $1,000 for failing to provide accurate information regarding the future of the Residential Thermal Storage (RTS) rate class after a customer inquired.

On May 4, 2009, a complaint was filed against PPL alleging that PPL’s elimination of the RTS rate was a violation of the Public Utility Code.  The complainants asked the Commission to require PPL to mandate continuance of the rate.  To continue the thermal heating rate discount would be inconsistent with Commission orders approving the company’s rate structure; however, the Commission found that PPL’s actions constituted inadequate service when the company failed to provide accurate information in response to the complainant’s inquiry in 2008 about the future of the RTS rate prior to the purchase of their residence.

Beginning January 1, 2010, Rate Schedule RTS reflects competitive market-based prices. All other PPL customers also have moved to market-based prices. Previously, under Rate Schedule RTS, customers were charged a special rate for using thermal storage heating technology that shifted a major portion of their electricity usage to late afternoons or early evenings which were “off-peak” hours.

The Rate Schedule RTS rate was designed for energy-use patterns of 20 years ago. At that time, peak winter usage occurred at about noon, meaning that power was the most expensive at mid-day. Thermal storage heating systems, which charge in the late afternoon and early evening, were designed to shift that usage to a different time of the day when power was less expensive.  The Commission recently approved a proposal by PPL Electric that allows Rate Schedule RTS customers to shift their usage out of the peak periods and to charge their systems for a longer period of time, allowing them to save money.

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. C-2009-2105583

Contact:

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