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PPL Large C&I Optional Fixed Product Again Unsubscribed, Will Not be Offered

July 22, 2011
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PPL will not offer the optional monthly pricing service to large commercial and industrial customers on default service in the next quarter, the Pennsylvania PUC directed in a Secretarial letter.

The PUC's order results after a July RFP procured an insufficient number of tranches to serve the load of the Optional Monthly Pricing Service, which is intended as an alternative monthly fixed price for default supply versus hourly pricing. The RFP was seeking supplies for the Optional Monthly Pricing Service for the three-month period beginning September 1, 2011.

Consistent with its default service plan, the Optional Monthly Pricing Service for large customers shall not be offered if there are insufficient tranches bid. In the two previous RFPs in which the Optional Monthly Pricing Service has been offered, the solicitations have failed to attract sufficient bids as well, and the monthly option has not been offered to date.

In the July RFP, 20 tranches of the Optional Monthly Pricing Service were offered on a load following, full requirements basis (each 5% of total load). The peak load contribution per tranche was estimated at about 100 MW.

Additionally, PPL's July solicitation separately included a full requirements RFP for 12 and 24 month fixed price products for residential customers and small commercial and industrial customers; a 12 month block energy RFP; and a 12 month Alternative Energy Credit (AEC) RFP. The supply periods for all these RFPs commence on September 1, 2011.

The PUC on July 21 approved the results from these three RFPs. Results will be posted shortly by PPL on the RFP portion of its website

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