Pennsylvania utility companies file plans with state PUC to procure electric supply

Published on December 17, 2021 by Dave Kovaleski


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Several utility companies in Pennsylvania have filed plans with the Pennsylvania Public Utility Commission (PaPUC) to procure electric generation supply for customers who choose not to shop with alternate suppliers, starting in June 2023.

The plans were filed by FirstEnergy Corp.’s Metropolitan Edison (Met-Ed), Pennsylvania Electric (Penelec), Pennsylvania Power (Penn Power), and West Penn Power (West Penn). These companies, which do not own any electric generating plants, serve more than two million customers in Pennsylvania. An auction process will ensure the utilities’ customers have a secure supply of electric generation.

The procurement process will be managed by global consulting firm CRA International, a company with expertise in energy markets. CRA will conduct the first auction in November 2022 and then semiannually from 2023 to 2026. Generation prices will be calculated based on a blended average by customer class.

The proposed program includes a process for meeting state-mandated alternative energy standards, including a separate bidding process to procure a long-term solar energy project. Further, the companies have proposed continuing the Customer Referral Program established in August 2013 to enhance retail competition in their service territories.

The companies expect PaPUC to rule on their Default Service Program petition in mid-2022.