On September 10, 2008, PECO filed a plan with the Pennsylvania Public Utility Commission (PUC) to purchase power competitively, phase-in market-based rates that will take effect in 2011, and implement energy efficiency programs that complement Act 129 and will help minimize price increases and better manage your electric use.
Elements of PECO’s plan:
For You – the customer:
Market rate phase-in plan: To help ease you into the rising rates that will take effect in 2011, this plan would give you the option to prepare for any increase by paying into a 6 percent interest-bearing savings plan. Your savings plan payments, plus interest, would then be applied to your bills in 2011. The plan would alternatively allow you to defer a portion of any initial rate increase by spreading out the amount of the first year’s increase during the following two or three years, providing additional time to manage new rates.
Energy efficiency programs: We will dedicate more than $50 million to programs and products that can help you manage costs by using energy as efficiently as possible. These would include an enhanced compact-fluorescent light-bulb (CFL) discount program at area retailers, Web-based energy audits, and voluntary programs to control air conditioner energy usage during periods of high demand and high cost. These programs are the first of many expected to be developed that are aimed at reducing energy consumption by one to two percent for our customers. A one to two percent reduction in customer energy consumption would place PECO among the leading utilities in customer energy reduction efforts.
Enhanced low-income assistance: A discounted residential rate will be offered to qualifying low-income customers. The discounts vary depending upon your level of income. The discount percentages will be modified to assure the rates are affordable.
Consumer Education: A multi-million dollar consumer education campaign is already underway, and will run through 2012, to raise awareness about energy efficiency and conservation. The campaign will highlight various steps you can take to better manage the transition to market-based electric rates.
For PECO:
Competitive electricity purchases: PECO will buy the electricity it needs to supply customers through a series of competitive purchases at different times. This will prevent us from having to purchase all of our power at one time, when market prices could be high. PECO will provide this electricity to customers who do not choose to buy their power from an alternate retail electricity provider at no additional mark-up.