Wednesday, June 8, 2011

PUC Holds Today Important Electricity Competition Hearing

I will be testifying today to the Pennsylvania Public Utility Commission in its proceeding to look at the state of electricity competition and what steps could be taken to increase competition.

The amount of competition varies across the Commonwealth and by customer class to some extent.  Industrial consumers have shopped in huge numbers, with 90% of their load now supplied by competitive electricity suppliers.  Larger commercial customers also have shopped in large numbers.

But residential customers have shopped at much lower rates and continue to take generation service from their local electricity distribution company through "Default Service" products.  The rate of residential competition and the number of companies competing for residential customers is highest in PPL, PECO, and Duquesne Light service territories and lowest in the Allegheny Energy, Penelec, and Met Ed territories.

In the Allegheny Energy, Penelec, and Met Ed territories nearly all residential customers are being supplied by the local electricity distribution company through default service.

More than 14,000 megawatts and 1 million customers are now supplied by competitive electricity suppliers.   The numbers are increasing which is good but more needs to be done to boost competition.

I will be making 5 recommendations today in my testimony to increase choices for all customers and especially residential consumers.

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