State denies PCPL energy auction plan

HARRISBURG n The Pennsylvania Public Utility Commission on Wednesday decided that Pike County Power and Light next year should buy its power on the spot market, rather than the auction process that PCPL had proposed. The decision came in a “binding poll” by the commission on PCPL’s petition for approval of a default service implementation plan. The commission refers to default service as a provider of last resort service. Default service prices are required to reflect “prevailing market prices,” according to law. Major PCPL rate increases came into effect after PCPL’s parent company, Consolidated Edison was the sole bidder in the company’s last auction. The result of the poll was consistent with the Recommended Decision of the Administrative Law Judge, under which PCLP will implement a 17-month default service implementation plan, from Jan. 1, 2008 through May 31, 2009, during which PCLP will procure all energy from the New York Independent System Operator on the spot market. Commissioner Tyrone Christy wrote a minority statement saying spot market buying could lead to wide fluctuations and price spikes, noting PCPL had guaranteed auction caps to stabilize rates. The commissions proposed plan would cover default service provided from Jan. 1, 2008 to Dec. 31, 2010. The company’s current default service prices expire Dec. 31, 2007.