Downward trend in electricity wholesale cost reported.

This was taken from the Harrisburg Patriot News 3/2/10.   See the last paragraph regarding the downward trend of wholesale electricity costs.

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 (to discuss, contact Jeff Kurtz, Glacial Energy  570-401-4843

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PPL seeks another rate increase

Tuesday, March 02, 2010

BY DAN MILLER danmiller@patriot-news.com

PPL customers saw their bills go up 30 percent when rate caps came off at the beginning of the year, and another rate hike could be on the way in January.

PPL on Monday said it will seek a "modest" increase of about $7.50 a month in its distribution rate from the Pennsylvania Public Utility Commission.

The increase would apply to all PPL customers no matter whether they have switched to another electric supplier because all PPL customers pay the company's distribution charge.

The roughly 25 percent of PPL residential customers who have switched to another supplier could pay a different rate for electricity generation, which makes up the biggest portion of an electric bill.

PPL said it has not finalized how much of an increase the company will seek in the distribution rate when the application is made to the PUC at the end of March.

PPL President David DeCampli said the increase would not exceed $115 million, or about a 2.5 percent increase in PPL's total retail revenues.

PPL spokesman Ryan Hill said the request would be comparable to the last distribution rate hike the PUC granted effective Jan. 1, 2008. Hill said that increase added less than 25 cents a day to the average residential bill.

Of PPL's average residential bill of $137, about $35 is for distribution charges.

Hill said the rate increase also would help PPL secure financing for distribution system improvements that could minimize the cost impact on consumers.

DeCampli said even with the distribution rate increase, some customers could see a decrease in their bill in 2011, based on the wholesale price PPL has been paying for electricity generation in 2010.

The wholesale price is what PPL and other suppliers will use to set generation rates in 2011. So far, that rate would translate into a lower generation charge than residents are now paying, Hill said.

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Posted 3/4/10 by Jeff Kurtz, Business Development Manager, Glacial Energy of PA   570-401-4843   jeff.kurtz@glacialenergy.com