UGI Electric Awards Electricity Supply Contracts
09 Jan 2009
Wilkes Barre, PA (January 9, 2009) – The Pennsylvania Public Utility Commission (PUC) has approved the results of three competitive-bid solicitations for a portion of the power UGI Utilities, Inc.- Electric Division needs to serve residential and small-business customers in 2010 and for residential customers in 2011 through 2013. This electric power will be provided to those customers who do not choose their own provider. Based on the results of the solicitations thus far, rates would remain relatively stable through May 2013.
UGI’s Electric Division secured approximately two-thirds of its anticipated power supply from January 2010 through May 2011 for residential and small industrial and commercial customers. In addition, approximately 45 percent of estimated supplies for residential customers has been secured for June 2011 through May 2013 through the competitive bid process.
The remaining supplies will be purchased in future competitive bid solicitations. These solicitations are part of a comprehensive default service procurement and implementation plan approved by the PUC.
Under the procurement and implementation plan, UGI purchases electric power over the course of several years. By not purchasing large blocs of power at one time, this method of cost averaging tends to mitigate price fluctuations in the wholesale energy market.
Actual future bills will depend on each customer’s individual usage pattern and future competitive solicitation results. While it is premature to anticipate the impact on customer bills, results to date suggest that UGI customers will see relatively stable rates through May 2013 compared to current 2009 rates.
UGI Utilities Electric Division serves 62,000 customers in portions of Luzerne and Wyoming counties in northeastern Pennsylvania. Additional information about UGI’s Electric Division is available online at www.ugi.com.