ALJ Would Grant UGI Request to "Roll Over" Default Service Plan for Additional Year

A Pennsylvania ALJ would grant the petition of UGI Utilities, Inc. - Electric Division to "roll over" its existing default service plan for customers above 500 kW (GSR 3 Group customers) for an additional one-year period ending May 31, 2014.

There was no objection to the petition, and an ALJ would grant UGI's petition as filed.

UGI had proposed the one-year extension of the current default service program for these customers -- which is hourly pricing -- to align the termination date of the plan with the end date for the current default service plan serving residential customers and non-residential customers at and under 500 kW.

Specifically, the hourly default service plan for GSR 3 Group customers is scheduled to expire May 31, 2013.

However, the default service plan for smaller customers will not expire until May 31, 2014. Under the small customer default service program, residential customers are served on a mix of 7x24 or 5x16 block purchases (65%); swing service (25%); and spot purchases. C&I customers at or under 500 kW are served on full requirements contracts priced 90% load-following and 10% spot.

UGI said that it anticipates seeking approval in the near future of a default service and retail market enhancement program for all of its customers for a two-year period beginning June 1, 2014.

Under its rollover for GSR 3 Group customers, UGI proposed to continue acquiring power for GSR 3 Group default service customers on an hourly basis through purchases from PJM Interconnection LLC at the PJM Locational Marginal Price, through May 31, 2014.

UGI said that it will continue to manage the procurement of these hourly supplies, "since it is not practicable to obtain a third party supplier for such a small potential number of default service customers."

UGI will also manage the procurement of Alternative Energy Portfolio Standard (AEPS) credits applicable to GSR 3 Group loads.

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