The company has now completed the auction purchases needed to serve its customers next year after generation rate caps expire on 31 December 2010.
The auction purchases account for 80% of supply needed for residential customers next year and approximately 90% of small and mid-sized non-residential customers’ needs.
Additional spot market purchases will be made throughout 2011 to complement the fixed-priced auction purchases, the company said.
Assuming the spot market purchases are consistent with current market pricing, a typical Pennsylvania residential customer’s monthly bill next year will increase $3.16 over 2010 levels, assuming usage of 1,000kWh per month.
For small and mid-sized non-residential customers, rates in 2011 will decrease 3.2% and 3.9%, respectively.
Allegheny Power awarded 20 contracts in this auction, representing approximately 7.4 million MWh of generation supply.
