Pennsylvania PUC: Goal of "Perfectly Competitive Markets" Will Not Come at Expense of All Other Considerations

The Pennsylvania PUC reminded stakeholders yesterday that it will not pursue the goal of fashioning perfectly competitive markets, "at the expense of all other considerations."

Certain PUC Commissioners had previously expressed similar sentiments in comments on the tentative final order and final order in its retail markets investigation.

The PUC's latest pronouncement came in ruling that it is appropriate for the FirstEnergy utilities to self-supply (from PJM market purchases) hourly priced default service customers on an interim basis after the PUC rejected results from a competitive procurement for hourly priced supplies (see related story today).

In short, the PUC found that while the self-supply option was not the "most" competitive option to serve default service load, it is appropriate given other considerations.

"In addition to concerns over competitive supply markets, we are tasked with the obligation to ensure adequate and reasonably continuous electric supply within the Commonwealth. The First Energy proposal, while arguably not the most competitive option, currently represents a reasonable and prudent backstop to the difficulties encountered in the January 2013 auction," the PUC said.

"The First Energy proposal is, overall, consistent with a competitive procurement process; we will not pursue the goal of fashioning perfectly competitive markets at the expense of all other considerations," the PUC said [emphasis added].

"Therefore, we will approve the addition of an auction for industrial customer default service supply to the September 2013 auction for commercial customers; as well as, approve and continue to allow the in-house acquisition of default service supply by the Companies for industrial customer default service that began June 1, 2013, through November 30, 2013," the PUC ruled.