Pa. PUC Approves Increase in PECO Retainage Rate

The Pennsylvania PUC approved a settlement in PECO's 1307(f) Purchased Gas Cost rate investigation which requires PECO to increase the retainage volume adjustment for natural gas transportation service customers from 2.5% to 2.8% for a period of one year commencing December 1, 2010 (R-2010-2174034, Only in Matters, 8/16/10).

Additionally, by the time of PECO's next annual Section 1307(f) proceeding, PECO will enhance its website to include a list of natural gas suppliers providing service to PECO's residential customers. The list was requested by the Office of Trial Staff, in order to provide another avenue for shopping customers to explore their options regarding natural gas suppliers.

The approved settlement requires PECO to retain its current hedging practices. PECO will continue to monitor the results of its hedging program and will report the results in its next annual Section 1307(f) proceeding.

PECO will also develop analyses concerning potential further modifications to its hedging methodology. The analyses will consider: (i) tailoring the level of hedging to the level of purchases forecasted for the prospective year; (ii) the relative impact of taking PECO's hedges, exclusive of its dollar-cost-averaged hedges, on a pro rated basis (rather than on estimates concerning potential future gas price levels); and (iii) the appropriateness of hedging more than the current 29% of total purchased gas.