The state Public Utility Commission's approval of a customer choice pilot program will usher in a new era of choice for Pennsylvania's electric customers, a Pennsylvania Power & Light Co. official said.
More than 278,000 customers of all the major investor-owned utilities will get the opportunity to choose from competing suppliers of electricity, including PP&L. The programs are scheduled to start in November and will continue throughout 1998.
"The era of choice for Pennsylvania's electric customers begins with the pilot programs," said Robert J. Grey, PP&L's senior vice president, general counsel and secretary. "The PUC's decision takes us in the right direction. PP&L has been a leading advocate of giving customers choice, and we look forward to competing for customers throughout Pennsylvania."
PP&L is a licensed electricity supplier and will offer electricity at competitive market prices to customers in the PP&L pilot program and customers in other electric utility pilot programs.
Each utility will conduct a pilot program that offers 5 percent of its customers the opportunity to choose an electric supplier. More than 61,000 PP&L customers will get that opportunity. Customers will be able to volunteer for the program.
After 1998, customer choice will be phased in for all Pennsylvania electric customers during a three-year period.
"The pilot programs will provide a very necessary trial period for customers, electricity suppliers and all other interested parties to make the full transition to customer choice," Grey said. "These changes will give customers a choice and will allow PP&L to compete in new markets throughout Pennsylvania."
Customers who elect to participate will receive a credit of up to 3.7 cents on their bills for each kilowatt-hour of electricity they purchase in the competitive market. The credit varies based on customer class. A customer's net savings will result from the difference between the cost of electricity purchased in the competitive market and the amount of the customer credit.
PP&L will examine the PUC's decision and will soon provide customers with detailed information on how the pilot program works and on the customer choice law. A list of electricity suppliers that have been licensed by the Public Utility Commission will be sent to customers.
As customers have the opportunity to choose, PP&L will continue to provide customer services, deliver electricity and maintain electric lines. There will be no additional electric lines brought into homes or businesses, and all existing customer services will continue.
"PP&L will deliver the same high-quality electric service as always, and customers will have the opportunity to choose the company that generates their electricity," Grey said.