PPL president David DeCampli said in a release, "We're pleased with the PUC's decision and will soon begin the process of buying electricity supply for our customers at the current, relatively low prices for 2011. The lower the prices we get in these purchases, the lower the electric bills will be for customers who don't pick an alternative electricity supplier.
The company, which sells but does not generate electricity for consumers, is buying electricity through a combination of long-term, short-term and spot-market purchases.
This blend will be reflected in generation rates for residential and small-business customers starting in 2011. Quarterly adjustment of prices, already used for Pennsylvania natural gas customers, will then be implemented.
Large commercial/industrial customers will be able to choose a short-term, fixed-price option or hourly market rates if they choose to stay with PPL.
These purchases are part of PPL's prolonged attempt to hold down price spikes when state-mandated price caps implemented in the 1990s expire January 1, 2010.
This newly PUC-approved plan is separate from PPL's plan for purchasing 2010 default power supply. PPL has made five of six power purchases for 2010 over the last few years, and will make the sixth in October.