Press Release

PUC Approves Penn Power Default Service Plan Settlement

Published on 10/21/2010

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a settlement for a default service plan for Pennsylvania Power Co.

The Commission voted 3-2 to adopt a motion by Commission John F. Coleman Jr. to approve the settlement but which made one provision of settlement subject to approval of the Federal Energy Regulatory Commission. Commission Chairman James H. Cawley issued a statement. Vice Chairman Tyrone J. Christy and Commissioner Wayne E. Gardner voted against the motion.

The default service plan sets the framework for how the utility to acquire power for those customers who choose not to use a competitive supplier for the generation portion of their bill. The settlement was reached among the parties in the case including the company, the Office of Consumer Advocate, the PUC Office of Trial Staff, the Office of Small Business Advocate and other formal complainants.

The default service plan covers service from June 1, 2011, through May 31, 2013, and includes steps to obtain least cost generation supply on a long-term, short-term and spot market basis. The plan also attempted to remove certain barriers to competition.

The 1997 Electricity Generation Choice and Competition Act required electric companies, or a Commission-approved competitive supplier, to provide electric generation service to customers who have not selected a competitive generation supplier. 

 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-2010-2157862

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