PA Electric "E" Project

Electric power costs are going to increase in the very near future. Our neighbors in Maryland faced deregulated rates that were up to 70% larger than the pre-deregulation days. In order to be properly prepared to address and control the impact of these potentially devastating increases, the planning must start immediately. To do nothing means to accept the large rate increases contained on the PUC rate class applications. Participation in the PA Electric "E" Project will enable you to be part of a collective program to lessen the impact of PA deregulation of electric power.
The goals of the PA Electric "E" Project are to minimize the impact of electric rate increases by:

• Investigating the potential of group (or bulk) electric power purchases;
• Obtaining electric rate concessions from power companies;
• Attempting to force down the default rate charged by the electric company by making sure the capacity is properly priced and that the utility is buying capacity at the lowest cost;
• Filing rate challenges with the PUC, where necessary;
• Reducing electric usage for project participants.

Role of Mette, Evans & Woodside

To achieve these goals, the group will use the services and resources of Mette, Evans & Woodside (MEW). MEW is a full-service law firm with experience in PUC rate challenges. With regard to the above goals, MEW will counsel and assist members of the group in these ways:

• Review existing electric rates and rate filings for all electric generating companies serving PTLA participating member rate classifications.
• MEW will follow and track state legislative initiatives and attend state legislative and Public Utility Commission (PUC) hearings and meetings, where necessary, related to the electric rate cap expirations as well as monitor the new rate filings with the state Public Utility Commission. These tasks will provide a foundation for the development of a strategy for the best way to challenge the new rates being proposed.
• Assist the project director, where requested, in the selection of other members of the project team which may include an electric utility lobbyist, a rate specialist and, when necessary, other specialized resources.
• Negotiate, prepare and review contracts and documents pertaining to the "collective" or bulk purchases of electric power for project participants or for individual purchasers.
• Assist the project director, where requested, in the preparation and review of contracts and documents pertaining to reducing electrical usage for project participants.

Initial Actions (First 90 Days)

Over the initial 90 days (July 15th - October 15th, start date based upon initial funding), MEW will review the various rate classifications of the members of the PA Electric "E" Project. Members of the group whose rates will be affected with the next wave of deregulation will be identified. Existing rate filings will be obtained and analyzed. A broker will be retained to begin an outreach with power companies on the potential for bulk purchase.

Conclusion

To have the ability to confront the rate changes that will be imposed at the levels decided by the power companies, unless challenged. PTLA members need to band together to form a group with significant market power. The greater the participation, the greater is the chance of success. A successful program does not occur without participation and it is not effective unless the effort is engaged early enough to strategize, plan and sustain the challenges. Such major efforts may be costly but, in this case, the potential cost savings resulting from achieving the outlined goals will significantly exceed the expense.