Press Release

PUC Approves Joint Default Service Plan of Citizens’ Electric Company and Wellsboro Electric Company

Published on 2/12/2015

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a Joint Default Service Plan (DSP) filed by Citizens’ Electric Company (Citizens’) and Wellsboro Electric Company (Wellsboro) (collectively referred to as “the Companies”).

The Companies filed the petition on May 30, 2014, for the period of June 1, 2015, through May 31, 2018.

The Commission voted 4-1 on a motion by PUC Commissioner James H. Cawley to approve the petition with an amendment to the procurement schedule, ordering that pricing for the energy component of the contract will be adjusted every six months, based on average monthly on-peak pricing of two hedges based on 12-month forward indices. The motion also ensures that customers returning to default service receive the same price as other default service customers.

“Section 2807(e) of the Public Utility Code provides that a default service provider must procure electric power via a prudent mix of spot market, short-term and long-term contracts designed to ensure adequate and reliable service at the least cost to customers over time. In the instant DSP proposal, the Companies neglected to include any long-term contracts,” said Commissioner Gladys M. Brown in a dissenting statement. “Given the lack of long-term contracts and the lack of any evidence substantiating this omission, I respectfully dissent in approving the Companies’ default service plan.

The ALJ issued a recommended decision on Nov. 13, 2014, and parties filed exceptions and reply exceptions to that decision.

Citizens’ provides electric distribution service to 5,736 residential customers and 1,151 commercial, industrial and lighting customers in Lewisburg Borough, Buffalo, East Buffalo and Kelly Townships (Union County), as well as in West Chillisquaque Township (Northumberland County).

Wellsboro provides electric distribution service to 5,070 residential customers and 1,185 commercial and industrial customers in the Borough of Wellsboro (Tioga County).

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at http://www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility. “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.

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Docket Nos. P-2014-2425024, P-2014-2425245

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