Retail Supplier Says Default Resulted from Load Calculation Error; Says Will Cease Efforts to Return to Most Markets

In a written statement to Connecticut regulators, People's Power & Gas, LLC said that its recent default at PJM resulted from a "load calculation error."

Discussing the events which led to its default at ISO New England in December and January, People's Power & Gas also explained what led to its default at PJM in January.

"We also recently experienced a separate default in the PJM territories that affected our Delaware operations. The basic facts are that there was a load calculation error that led to People's receiving an extraordinarily high and unpayable bill to PJM, resulting in a default. Essentially, People's had 1 MWH of load and a day got scheduled in the day ahead market at 100 MWH of load. People's has made efforts with PJM to fix the calculation error and reduce the amount owed to its proper levels but, to date, such efforts have proven to be unsuccessful. PJM is taking the position that the 100 times the proper amount charge for that day is unrecoverable," People's Power & Gas said.

"This second default at ISO-NE and the new default at PJM have been obvious setbacks from which People's cannot recover. Accordingly, we request leave to withdraw electric service in the Connecticut market. We will also do the same in most, and potentially all, of the other People's states with electric licenses," People's Power & Gas said.