Special Update # 2 on Expiring PPL Rate Caps
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PPL rate caps on the generation component of the bill expire January 1, 2010.
Market energy prices are significantly above PPL's decade-long frozen generation prices. All generation components: energy, capacity, transmission and ancillaries have increased over the past 10 years and PPL's generation rates will start to reflect market conditions January 1, 2010.
Full service (non-shopping) options: PPL has two bridge plans for 2010 depending on customer class:
- RS, GS1 and GS3 (and other secondary voltage) Full Service customers: PPL has completed 6 of 6 pre-purchases (two in 2007, two in 2008 and now two in 2009) for 2010 power for secondary voltage customers. Average price (does not include transmission) looks to be: Residential = 9.948 c/kwh and other Secondary rates = 10.053 c/kwh. PPL states the final results indicate 2010 increases of: RS = 29.7%, GS1 = 18.4%, GS3 = 36.1%.
- Primary LP4, LP5 & LP6 customers: The PPL default supply rate will be real time hourly market pricing. The PPL bridge plan is a one time, one year fixed price supply option for 2010 only. Customers must have already “opted in” (notified PPL of interest in participating) by 07/27/09. PPL announced the price results on 10/08/09. The 2010 fixed price bridge offering is 9.2 c/kwh (transmission not included) for LP4 customers and 8.95 c/kwh for LP5 and LP6 customers. Primary customers that “opted in” prior to 07/27/09 must now notify PPL of their desire to accept the PPL 2010 bridge supply offer by 11/09/09. No opt-in action at either step eliminates the PPL fixed price bridge option. All other non-shopping primary customers will be served on default hourly market priced supply.
There is still time! Because of the dramatic pullback in natural gas and electric futures markets over the past year, PPL customers (particularly rate GS3 customers) have the ability to lock in alternate supply pricing measurably below PPL’s (secondary service) bridge supply pricing for 2010. In fact, generation supply can be locked in providing price certainty and budget surety for two and even three years at significantly lower rates than the market rates of just a year ago!
LP4, LP5 and LP6 customers that are unable to get lower alternate supplier fixed pricing for 2010 due to a low load factor should consider accepting the 2010 PPL bridge offer if they opted-in for PPL bridge plan participation prior to 07/27/09. Primary service customers with a good load factor will likely obtain lower pricing from an alternate supplier. Now that PPL has completed their 2010 bridge supply purchases, alternate suppliers have become even busier handling pricing requests. We may have passed the sweet spot but there is still time to lock in low priced alternate supply.
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