The largest energy-purchasing group in Pennsylvania — a group whose members include nearly half the state's school districts and more than 20 municipalities — has selected PP&L EnergyPlus Co. as the preferred energy supplier for its members in the Pennsylvania Electric Choice Program.
Members could save as much as $11 million on their electric bills, said John F. Cotter, senior vice president-Marketing for PP&L EnergyPlus. The agreement will have significant benefits for both students and taxpayers.
The energy-purchasing group is the Pennsylvania Energy Consortium (PENCON). Individual members of the group will purchase more than 600 million kilowatt-hours of electricity from PP&L EnergyPlus through 2,400 accounts statewide starting in January 1999.
As part of the agreement, PP&L EnergyPlus will establish an educational fund for PENCON-member school districts that purchase electric generation supply from the company, Cotter announced.
"The PP&L family of companies has had a long-standing interest in education," he said. "This fund is another way to expand education partnerships and demonstrate our commitment to help school districts meet more than just their energy needs."
PP&L EnergyPlus will contribute to the fund a portion of the annual electric generation supply sales revenue it receives from each educational account. The expected contribution for 1999 will be nearly $100,000.
PP&L EnergyPlus and the PENCON board of directors will establish guidelines for uses of the fund. Potential uses include scholarships, a computer technology program, an expert-in-residence program and guest speakers.
"These contributions will be in addition to the millions of dollars in savings PENCON members will realize by choosing PP&L EnergyPlus as their electricity supplier," Cotter said.
In addition to electricity supply, PENCON members can receive energy-management and energy-efficiency services, which can increase their potential cost savings.
"Energy-cost reductions are a direct benefit to the taxpayers of the school districts and municipalities involved," Cotter added.
PENCON selected PP&L EnergyPlus as the preferred energy and energy services supplier for its members after inviting all qualified suppliers in the state to submit requests for proposals. PP&L EnergyPlus was chosen from among the seven suppliers that responded to the request.
"PP&L EnergyPlus has been a valuable ally to school districts and municipalities in the move to customer choice," said Jeff Kimball, president and co-founder of PENCON.
Nearly 70 PENCON members who have been in Pennsylvania's customer choice pilot program since the fall of 1997 already have saved more than $650,000 on their energy bills by selecting PP&L EnergyPlus, he noted.
PP&L EnergyPlus has provided other valuable services, such as keeping PENCON members informed about the ever-changing deregulation process.
"PP&L EnergyPlus has shown us that it is not afraid to compete in the new electricity market," Kimball said.
Previously, the Pennsylvania Chamber of Business and Industry selected PP&L EnergyPlus as the preferred supplier for its 5,800 members. That agreement provides businesses with a price guarantee and an annual rebate on their electric bill.
PP&L EnergyPlus is not the same company as PP&L, Inc., the electric distribution company. PP&L EnergyPlus prices are not regulated by the Pennsylvania Public Utility Commission. You do not have to buy electricity or other products from PP&L EnergyPlus to receive the same quality service from PP&L, Inc.