FirstEnergy Pennsylvania Utilities Propose Procurement Dates for Modified Default Service Plan

Met-Ed, Penelec, Penn Power, and West Penn Power have proposed to the Pennsylvania PUC dates for the procurement of default service supply for the period June 1, 2013 through May 31, 2015.

As first reported by Matters, the PUC previously accepted a modified version of the FirstEnergy utilities' proposed default service plan, such that residential default service shall be served by a mix of 24-month fixed price full requirements contracts (about 40-50% of the portfolio, varying slightly by individual EDC), 12-month fixed price full requirements contracts (~40-50%), and, at Met-Ed, Penelec, and Penn Power only, a mix of a legacy block energy product and spot pricing (~14%). West Penn Power has no legacy block product serving default service.

Additionally, the PUC previously modified the utilities' proposed default service plan such that commercial default service shall be served under a mix of one-year and six-month full requirements contracts, including a laddering of contracts.

In adopting the modifications, the PUC granted the utilities limited flexibility to propose new procurement dates for the modified procurement mixes, and directed the utilities to file proposed procurement dates.

A chart depicting the FirstEnergy EDCs' proposed procurement dates, amount of supply per procurement, and term lengths in each procurement, can be found here

For residential default service, Met-Ed and Penelec proposed to procure supply as follows:
• 43% of supply for the period June 1, 2013 to May 31, 2015 via tranches of 24-month full requirements contracts, procured in January 2013
• 43% of supply for the period June 1, 2013 to May 31, 2014 via tranches of 12-month full requirements contracts, procured in February 2013
• 43% of supply for the period June 1, 2014 to May 31, 2015 via tranches of 12-month full requirements contracts, procured in January 2014
• 14% of supply through the legacy block product plus spot purchases

For residential default service, Penn Power proposed to procure supply as follows:
• 37.5% of supply for the period June 1, 2013 to May 31, 2015 via tranches of 24-month full requirements contracts, procured in January 2013
• 37.5% of supply for the period June 1, 2013 to May 31, 2014 via tranches of 12-month full requirements contracts, procured in February 2013
• 37.5% of supply for the period June 1, 2014 to May 31, 2015 via tranches of 12-month full requirements contracts, procured in January 2014
• 25% of supply through the legacy block product plus spot purchases

For residential default service, West Penn Power proposed to procure supply as follows:
• 50% of supply for the period June 1, 2013 to May 31, 2015 via tranches of 24-month full requirements contracts, procured in January 2013
• 50% of supply for the period June 1, 2013 to May 31, 2014 via tranches of 12-month full requirements contracts, procured in February 2013
• 50% of supply for the period June 1, 2014 to May 31, 2015 via tranches of 12-month full requirements contracts, procured in January 2014

For commercial default service, all four FirstEnergy EDCs proposed to procure supply as follows:
• ~50% of supply for the period June 1, 2013 to November 30, 2013 via tranches of 6-month full requirements contracts, procured in January 2013
• ~50%of supply for the period June 1, 2013 to May 31, 2014 via tranches of 12-month full requirements contracts, procured in February 2013
• ~50% of supply for the period December 1, 2013 to November 30, 2014 via tranches of 12-month full requirements contracts, procured in September 2013
• ~50%of supply for the period June 1, 2014 to May 31, 2015 via tranches of 12-month full requirements contracts, procured in January 2014
• ~50% of supply for the period December 1, 2014 to May 31, 2015 via tranches of 6-month full requirements contracts, procured in September 2014