Pennsylvania Code › Title 52 - PUBLIC UTILITIES › Part I - Public Utility Commission › Subpart C - Fixed Service Utilities › Chapter 69 - GENERAL ORDERS, POLICY STATEMENTS AND GUIDELINES ON FIXED UTILITIES › DEFAULT SERVICE AND RETAIL ELECTRIC MARKET-STATEMENT OF POLICY › Section 69.1805 - Electric generation supply procurement

Current through Register Vol. 54, No. 28, July 13, 2024
A proposed procurement plan should balance the goals of
						allowing the development of a competitive retail supply market and also
						including a prudent mix of arrangements to minimize the risk of over-reliance
						on any energy products at a particular point in time. In developing a proposed
						procurement plan, a DSP should consider including a prudent mix of supply-side
						and demand-side resources such as long-term, short-term, staggered-term and
						spot market purchases to minimize the risk of contracting for supply at times
						of peak prices. Short-term contracts are contracts up to and including 4 years
						in length. Long-term contracts are contracts more than 4 years in length but
						not more than 20 years. Long-term contracts of more than 4 years in length but
						not more than 20 years should not constitute more than 25% of the DSP's
						projected load unless the Commission determines that a greater portion of load
						is necessary to achieve least cost procurement. The plan should be tailored to
						the following customer groupings, but DSPs may propose alternative divisions of
						customers by registered peak load to preserve existing customer classes.
(1)
Residential customers and
					 nonresidential customers with less than 25 kW in maximum registered peak
					 load.
Initially, the DSP should acquire electric generation supply for
					 these customers using a prudent mix of resources as described in the
					 introductory paragraph to this section. Contracts should be laddered to
					 minimize risk, in which a portion of the portfolio changes at least annually,
					 with a minimum of two competitive bid solicitations a year to further reduce
					 the risk of acquisition at a time of peak prices. In subsequent programs, the
					 mix percentage of supply acquired through long-term and short-term contracts
					 and spot market purchases should be adjusted, depending on developments in
					 retail and wholesale energy markets to ensure least cost to
					 customers.
(2)
Nonresidential customers with 25-500 kW in maximum registered peak
					 load.
The DSP should acquire electric generation supply for these
					 customers using a mix of resources as described in the introductory paragraph
					 to this section. Fixed-term contracts may be laddered to minimize risk, with a
					 minimum of two competitive bid solicitations a year to further reduce the risk
					 of acquisition at a time of peak prices. In subsequent programs, the mix
					 percentage of supply acquired through long-term and short-term contracts and
					 spot market purchases should be adjusted, depending on developments in retail
					 and wholesale energy markets to ensure least cost to customers.
(3)
Nonresidential customers with
					 greater than 500 kW in maximum registered peak load.
Hourly priced or
					 monthly-priced service should be available to these customers. The DSP may
					 propose a fixed-price option for the Commission's consideration.
This section cited in 52 Pa. Code §
													69.1801 (relating to scope); 52
						  Pa. Code §
													69.1802 (relating to purpose); and
						  52 Pa. Code §
													69.1803 (relating to
						  definitions).