Press Release

HARRISBURG -- The Pennsylvania Public Utility Commission (PUC) today voted to approve PECO Energy’s request to complete the remainder of NewPower Holdings Inc.’s contract to serve about 180,000 Southeastern Pennsylvania customers at discounted rates.

"For the last month, this Commission has supported PECO’s efforts to find an alternative electric supplier to serve NewPower’s customers," said PUC Chairman Glen R. Thomas. "Throughout this process, our primary concern has been the 180,000 consumers who have participated in electric competition by moving to NewPower in exchange for lower rates. And we have worked to protect these customers from any disruptions in service.

"PECO proposed a plan that addressed the concerns of this Commission. PECO agreed to ensure these consumers will continue to pay lower rates, with no changes in the terms or conditions they were used to under NewPower, and with no changes in reliability.

"Today, we thank PECO for its commitment to keeping the confidence of these 180,000 customers who have participated in electric competition."

The discounted rates for energy/capacity and transmission will remain in effect until Feb. 1, 2004. These rates will be 5.71 cents per kilowatt-hour for residential service -- 2.02 percent lower than PECO’s regular residential rates; and 5.99 cents per kilowatt-hour for residential heating service -- 1.02 percent lower than PECO’s residential heating rates.

Since November 2000, NewPower has served as an alternative electric supplier for 180,000 electric customers, who before electric competition were served by PECO. NewPower announced in February that it no longer will provide service to these customers. With today’s action by the PUC, NewPower’s customers will be moved to PECO between April 25 and May 24. The 180,000 customers -- who represent 13 percent of PECO’s total number of residential customers -- will receive a notification beginning April 18.

PECO’s restructuring agreement requires PECO to have 50 percent of its residential and commercial customers served by alternative suppliers by January 2003.

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition.