On Friday April 18th, PPL Electric Utilities filed a plan with the Pennsylvania Public Utility Commission to purchase electricity for default customers from June 1, 2015, through May 31, 2017. Default customers are those who do not choose to buy generation supply and transmission service from an alternative electricity provider.

Pennsylvania law requires all electric utilities to provide electric supply to customers who do not choose to receive service from an electricity provider. PPL Electric Utilities encourages customers to seek opportunities to save on power supply costs by shopping for deals with alternative providers.

The main difference between the proposed default service purchase plan and the current one is how often the price to compare is adjusted. The price to compare is the price customers pay for generation and transmission if they do not switch to an electricity provider.

Under the proposed plan, the price to compare would be updated twice a year. This will provide customers more certainty around shopping around for electricity rates and will also provide electricity providers with more time and flexibility in creating pricing programs to encourage customers to switch.

PPL Electric Utilities currently updates its price to compare on a quarterly basis – March 1, June 1, September 1 and December 1 each year.

In its proposed plan, PPL Electric Utilities would continue to buy electricity for its non-shopping customers twice a year. It would also continue to solicit a portfolio of laddered contracts. These contracts represent a prudent mixture of short-term (under 12 months) and long-term (one year or longer) contracts and spot market purchases.

PPL Electric Utilities currently has contracts with several wholesale generation suppliers for supply for default customers. The company does not profit on the generation portion of customers’ bills. It passes along the cost of that supply to non-shopping customers without markup.

The company’s plan must be reviewed and approved by the PUC. A decision is expected in early 2015.