Met-Ed, Penelec, Penn Power Report Results from Default Service Procurements

Metropolitan Edison Company (Met-Ed) and Pennsylvania Electric Company (Penelec) have posted results from their recent RFP for full requirements commercial default service supply, and an RFP for residential block energy supply for those two utilities as well as Pennsylvania Power Company (Penn Power).

The full requirements auction procured 12-month generation supply contracts for Met-Ed's and Penelec's commercial customers (served on secondary voltage – generally up to 400 kW) on default service. The contracts cover the period June 1, 2012, to May 31, 2013.

Met-Ed procured 6 commercial tranches at an average price of $68.00/MWh. Each tranche represents 4.35% of class default service load.

Penelec procured 5 commercial tranches at an average price of $60.08/MWh. Each tranche represents 4.35% of class default service load.

The above prices have not been adjusted for Gross Receipt Taxes, procurement-related administrative costs, or distribution losses.

The full requirements procurement was the second of four for commercial default service for the period June 1, 2012, to May 31, 2013, with remaining procurements scheduled for January 2012 and March 2012.

The companies have posted to their supplier-support website sample calculations for Default Service rates which incorporate the results of the Met-Ed and Penelec Default Service auctions.

Additionally, Met-Ed, Penelec, and Penn Power also recently acquired blocks of energy for residential default service.

The products procured were 25 MW monthly block increments of On-Peak and Off-Peak energy delivered to the respective Penelec, Met-Ed, or Penn Power zone within the delivery period of June 1, 2012 through May 31, 2013.

Winning prices for the block products were:

On-Peak Average Price
Met-Ed: $58.16/MWh
Penelec: $53.50/MWh
Penn Power: $45.48/MWh

Off-Peak Average Price
Met-Ed: $43.52/MWh
Penelec: $39.78/MWh
Penn Power: $35.62/MWh