Allentown, PA, June 6, 2007 — PPL Electric Utilities is requesting proposals from competitive electricity suppliers to provide a portion of the electricity needed for any of its 1.4 million residential, small commercial and small industrial customers who do not shop for generation supply in 2010.
The company, which does not own power plants, is seeking contracts for one-sixth of the electricity it will need in 2010, or an estimated 850 megawatts. Five additional bid processes will be scheduled in 2007, 2008 and 2009 to secure the remaining power the company needs.
“Spreading out purchases over three years will eliminate the need to buy power all at once, potentially at a time of unusually high prices,” said David G. DeCampli, president of PPL Electric Utilities.
In Pennsylvania, if consumers don’t choose a competitive electricity supplier, electricity delivery companies like PPL Electric Utilities must purchase and provide generation supply for them. PPL Electric Utilities currently buys power for customers under a long-term contract with PPL EnergyPlus that expires at the end of 2009.
The company’s plan for buying 2010 supply was approved on May 10 by the Pennsylvania Public Utility Commission. The price that customers pay in 2010 will result from a blend of the contracts signed with competitive bidders through 2009.
The company said it will pass the costs of the purchases it makes directly to customers without markup. If lower prices are available in the open market, customers will have the ability to shop for alternative suppliers to lower their bills.
The company has hired NERA Economic Consulting, an independent third party, to manage the bid process. The deadline for bids is July 23, 2007.
For more news and exclusive features from Utility Automation & Engineering T&D and Electric Light & Power online, please click here.