Pennsylvania Power Company rates set to increase January 1, 2007 The Pennsylvania Power ("Penn Power") service territory electricity rate caps will expire on January 1, 2007 and new rates will go into effect. Penn Power posted its final Request for Proposals for Provider of Last Resort ("POLR") supply on May 5, 2006 and received bids on May 31st and July 18th. The new POLR rates will be released on or before October 16, 2006, and will go into effect on January 1, 2007 through May 31, 2008. Customers choosing hourly priced service ("HPS") offered by Penn Power as one alternative to POLR have until December 1, 2006 to notify the utility of their election. Customers electing HPS must have appropriate metering and have peak demand >500 kW. If a customer elects HPS, they cannot return to POLR service until May 31, 2008. Electricity Market Structure The State of Pennsylvania is open for competition for all customers with the exception of those that are served by a municipality or co-op utility. Pennsylvania customers may buy electricity supply service from any supplier licensed by the Pennsylvania Public Utility Commission and certified in the service territory of their local distribution company or from a "default provider" at a published tariff rate that is set each year. With the exception of customers in the Pittsburgh area, this rate generally increases by about 1.5% each year. In Western Pennsylvania, customers can expect the Duquesne and Penn Power default supply rate to vary from year to year because it is pegged more closely to the wholesale electricity market. For all other areas other then Duquesne and Penn Power, the utility supply service rates are fixed, and will escalate until they expire in the 2008-2011 timeframe, depending on when each individual distribution company's transition period is set to end. The difference in utility rate structures creates a pronounced difference in shopping rates amongst the state’s commercial and industrial customers. About Switching in Pennsylvania As an electricity supplier in the State, Constellation NewEnergy is licensed by the Pennsylvania Public Utility Commission. To be eligible to switch to our services, your company must be located in one or more of these utilities' service territories: - Pennsylvania Power & Light (PPL)
- Philadelphia Electric Company (PECO)
- Duquesne Light & Power (DLP)
- Allegheny Power/West Penn Power
- Pennsylvania Power (Penn Power)
- MetEd/First Energy
- Penelec/First Energy
The first step in switching your business' electricity service to Constellation NewEnergy is completing an Electric Supplier Authorization form that allows us to gather historical electricity usage data from your utility. This data is necessary to analyze your power consumption patterns and to develop a proposal that is customized to the needs of your business. You will then sign our retail Electricity Supply Agreement stating the specific product, your price for electric service, and the duration of the agreement. After our agreement is signed, the enrollment process is simple. Our local operations team will work to provide a seamless transition from the utility as your electricity accounts are transferred to our service. The number of notification days required prior to your next meter read date, to switch from the utility to Constellation NewEnergy or from Constellation NewEnergy back to the utility, varies from utility to utility. Please see the chart below for your utility’s enrollment and drop date notification requirements. Utility | Enrollment with CNE Window (Days) | Return to Utility Window (Days) | Allegheny Power | 15 | 15 | Duquesne Light & Power | 16 | 15 | MetEd | 16 | 30 | Philadelphia Electric Company | 15 | 30 | Penelec | 15 | 16 | Pennsylvania Power & Light | 16 | 30 | Pennsylvania Power Company | 15 | 15 | If the utility is given less then the required days, your service will continue with your current electricity provider until the next month’s meter read date. authorization_midatlantic_utilities.pdf |