PPL Electric Utilities Completes Third Purchases of 2011 Electricity Supply

Jan 21, 2010, 17:38 ET from PPL Electric Utilities

ALLENTOWN, Pa., Jan. 21 /PRNewswire-FirstCall/ -- PPL Electric Utilities on Thursday (1/21) announced the results of the third in a series of scheduled purchases for 2011 electricity supply. In this round, 18 companies competed for supply contracts.

PPL Electric Utilities obtained about 17 percent of the load-following electricity supply it will need to serve residential and small- and mid-size business customers from Jan. 1, 2011, to Nov. 30, 2011. Suppliers who win these full-requirements, load-following contracts commit to providing a percentage of the power needed to serve customers who do not choose alternative suppliers for the contract period.

The price in these purchases was $88.65 per megawatt-hour for residential customers and $86.80 per megawatt-hour for small and mid-sized businesses.

Also in this round, the company purchased two 25-megawatt blocks of around-the-clock electricity supply at an average price of $50.85 per megawatt-hour to serve residential customers from Jan. 1, 2011, to Nov. 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 around-the-clock electricity supply and alternative energy credits needed for those blocks were approved Thursday (1/21) 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.

PPL Electric Utilities, a subsidiary of PPL Corporation (NYSE: PPL), provides electric delivery service to 1.4 million customers in 29 counties of eastern and central Pennsylvania and has consistently ranked among the best companies for customer service in the United States. More information is available at www.pplelectric.com.

SOURCE PPL Electric Utilities