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PUC Commish: Utilities Must "Carefully Consider" New Long-Term Contracts for Default Service
Pennsylvania electric distribution companies must "carefully consider" including long-term contracts in their default service plans once legacy long-term contracts expire, Pennsylvania Public Utility Commissioner Gladys Brown said in a statement regarding the PUC's approval of a new default service plan for PECO.
Act 129, the controlling statute, calls for a "prudent mix" of spot market, short term, and long-term contracts for default service.
Brown noted that during her tenure, none of the default service plans brought before the PUC have included "new" long-term contracts; plans have only included legacy long-term contracts inherited from previous default service plans.
"These grandfathered contracts will eventually expire," Brown noted, as is the case at PECO. Under a plan adopted by the PUC, PECO will serve load formerly served by the long-term contract via a mix of full requirements and spot purchases.
"I wish to clarify that, in my opinion, it will be incumbent upon the EDCs and this Commission to carefully consider long-term contracts of four to twenty year terms, consistent with Section 2807 (e) of the Code, in future default service plans unless the Legislature decides otherwise," Brown said.
Additionally, Brown continues to support making Network Integration Transmission Service the responsibility of the EDC for all distribution customers, with retail suppliers relieved of the NITS obligation, with recovery via a nonbypassable charge. The PUC rejected such a proposal at PECO.
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December 5, 2014
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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com
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