December 5, 2007

Mr. Wendell Holland, Chairman

Pennsylvania Public Utility Commission

Commonwealth Keystone Building

P.O. Box 3265

Harrisburg, PA 17105-3265

Dear Chairman Holland:

I am writing in regards to PPL Electric Utilities’ “phase in” plan filed on November 30. I have some serious concerns about this plan and its implementation.

My concern does not arise from the idea of allowing customers to pay more now in order to soften the impact of the more severe rate increase when caps are removed. This concept, in and of itself, is sensible for some customers and PPL should be given credit for addressing the issue. However, the problem lies in the execution of the plan - PPL will increase everyone's rates unless the customer affirmatively opts out of the plan.  As a result, a customer who does nothing will get a rate increase in 2008.

In my judgment, the opposite should occur. A customer should not be included in the plan as a result of inaction, but only if they affirmatively opt into the plan. I discussed this matter with Consumer Advocate Sonny Popowski, and we agree that customers have a right, under current law, to maintain their generation rates at capped levels through the end of 2009. That right should not be taken from them without their express consent. Therefore, I would respectfully ask that you review all applicable statutes and regulations to see what authority your office can exert in order to adjust the filed “phase in” plan to reflect the afore-mentioned change.

Thank you for your consideration of this request.

Sincerely,

Rep. Phyllis Mundy

120^th Legislative District

PA House of Representatives