PPL Electric Utilities obtained about 17% of the load-following electricity supply it will need to serve residential and small- and mid-size business customers from January 1, 2011, to August 31, 2011.
Suppliers who win these full-requirements, load-following contracts commit to providing a percentage of the power needed to serve customers who do not choose alternative suppliers for the contract period. The price in these purchases was $95.95 per megawatt-hour for residential customers and $98.11 per megawatt-hour for small and mid-sized businesses.
Also in this round, the company purchased two 25MW blocks of electricity supply at an average price of $57.70 per megawatt-hour to serve residential customers from January 1, 2011, to August 31, 2011. The company also secured most of the alternative energy credits needed for these blocks of supply.
The price for these supply blocks is for energy only and does not include capacity and other charges, which the company will purchase separately from the regional PJM Interconnection.
The results for this purchase of load-following supply, blocks of electricity supply and the alternative energy credits needed for those blocks were approved by the Pennsylvania Public Utility Commission (PUC). The PUC did not approve the purchase of a small amount of solar alternative energy credits because of a lack of supplier participation.
State law requires PPL Electric Utilities, which does not own power plants and does not generate electricity, to buy default electricity supply from the competitive market for its customers who do not select alternative suppliers. The company must obtain electricity supply through a combination of short-term, long-term and spot-market purchases, and pass the costs through to customers without profit.
