Saturday, October 21, 2006

PPL's Power Purchase Plan

The Times Leader (PA):
The cost of electricity for customers of PPL Electric Utilities could spike in a few years, as price limits imposed in 1997 come off at the end of 2009. To cushion the blow, the company has asked the Public Utility Commission for permission to buy power on futures markets over the next three years, averaging the cost rather than taking a chance on what prices will be just as the caps come off.

Because the cost of fuels like oil and natural gas that are used to generate electricity spiked after the 2005 hurricane season, the caps have kept customers’ bills artificially low.