PPL Electric Utilities announced on Tuesday that it had filed a plan with the Pennsylvania Public Utility Commission to provide electricity for default customers beginning June 1, 2013, for two years.

Default customers, or those that do not choose to purchase electricity from a competitive supplier, must be provided with electricity from PPL Electric Utilities under state law, which states that such customers must be given electricity at the lowest cost.

PPL proposed to purchase the electricity that would be offered to default customers, allowing it to set electricity rates for nine- and 12-month contracts, or for hourly purchases in the open market during the two-year period. The new purchase plan shifts away from PPL's current plan in a number of ways.

Currently, the utility buys its supply of generation four times a year, compared to the proposed plans' twice a year. The new plan would change how much supply is purchased in the open market, from a total of 10 percent now to hourly purchases during the contract period.

In 2011, Pennsylvania's 10 percent cap on transmission and distribution rates expired, giving way for purchases like PPL's.

Author: Adam Cain

Adam Cain

Adam Cain is a content writer for ElectricityRates.com who has an avid interest in energy news and trends affecting consumers at the national, state, and local level.