Press Release

PUC Approves Default Service Plan for Duquesne Light Co.

Published on 1/24/2013

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved the manner in which Duquesne Light Co. will secure default service supply for the companies’ non-shopping customers June 1, 2013, through May 31, 2015. 

The Commission voted 5-0 to approve the plan.  Commissioner Wayne E Gardner issued a partial dissenting statement.  Commissioner Pamela A. Witmer issued a statement, and Commissioner James H. Cawley issued a statement.

Terms of the plan include:

• Adjusting the price to compare on a semi-annual basis.
• Approving a procurement strategy intended to ensure the provision of default service to customers on a least cost basis.
• Acquiring default supplies for residential and lighting customers through 12-month full requirements contracts from third party suppliers through competitive requests for proposals (RFP);
• Offering a retail opt-in option commencing in July, 2013 for customers based on a five-percent savings off of Duquesne’s Price to Compare for four months plus a $50 cash bonus, followed by an eight-month fixed price offer by participating competitive electricity suppliers;
• Establishing a continuing standard offer referral program commencing in August 2013 for customers that opt into a seven-percent price discount to the current Price to Compare for 12 months that will be offered by participating competitive electricity suppliers.

The 1996 Electricity Generation Customer Choice and Competition Act provides that electric distribution companies, or a Commission-approved alternative supplier, will provide default electric generation service to customers who have not selected an alternative generation supplier.  Under current law, the default service prices for electric generation service are required to be based upon a “prudent mix” procurement strategy that will 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, video and audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov.

###

Docket Number P-2012-2301664

Contact:

• Press Secretary
  717-787-5722