Allegheny Power, the electricity delivery unit of Allegheny Energy, said that the Pennsylvania Public Utility Commission has approved the results of its sixth auction to purchase power for its Pennsylvania customers for 2011 and beyond.
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.