PPL Electric Utilities obtained about 17% of the load-following electricity supply it will need to serve residential and small- and mid-size business customers from January 1, 2011, to November 30, 2011. The price in these purchases was $88.65 per MWh for residential customers and $86.80 per MWh for small and mid-sized businesses.
Also in this round, the company purchased two 25MW blocks of electricity supply at an average price of $50.85 per MWh to serve residential customers from January 1, 2011, to November 30, 2011. The company also secured alternative energy credits needed for these blocks of supply.
The price for these supply blocks is for energy only and does not include capacity and other charges, which the company will purchase separately from the regional PJM Interconnection.
The results for this purchase of load-following supply, blocks of electricity supply and alternative energy credits needed for those blocks were approved by the Pennsylvania Public Utility Commission.
State law requires PPL Electric Utilities, which does not own power plants and does not generate electricity, to buy default electricity supply from the competitive market for its customers who do not select alternative suppliers. The company must obtain electricity supply through a combination of short-term, long-term and spot-market purchases, and pass the costs through to customers without profit.
