Two Default Service Auctions In Different States Result In Unfilled Tranches; Contingency Plan Triggered At One Utility

Separate default service auctions at Duke Energy Ohio and Duquesne Light in Pennsylvania resulted in less than the originally planned amount of load being procured.

At Duquesne Light, the Pennsylvania PUC said in a secretarial letter concerning the results of the September 2022 default service auction, for a portion of supplies for the default service period December 1, 2022, through November 30, 2024, that the supply for medium C&I customers was undersubscribed and only three of the four available tranches were procured

Therefore, the PUC directed Duquesne Light to enact its contingency plan regarding the medium C&I customer procurement in accordance with its default service plan.

Under the default service plan, in the event Duquesne receives bids for less than all Tranches or the Commission does not approve all or some of the submitted bids or in the event of supplier default, then Duquesne will provide the balance of the default supply for commercial and industrial customers through purchases in the PJM spot markets until such time that a different contingency plan is approved by the Commission. Duquesne is required to submit to the Commission within fifteen (15) days after any such occurrence an emergency plan to handle any default service shortfall.

In the Duquesne Light auction, the supply for 12 and 24 months residential and small C&I customers was fully subscribed.

The PUC directed Duquesne Light to post results of the auction in accordance with prior Commission direction

At Duke Energy Ohio, a September 2022 auction was originally planned to procure 40 tranches of SSO load for the delivery period June 1, 2023 - May 31, 2024

Following round 2, the tranche target was reduced from 40 tranches to 20 tranches based on pre-determined criteria related to excess eligibility and the reservation price for the auction. All 20 tranches were then filled.

The tranche-weighted average price of winning bids at Duke Energy Ohio was $115.75 per MWh, for 20 tranches of supply for the delivery period June 1, 2023 - May 31, 2024

PUCO approved the results of the Duke Ohio auction