LEGISLATIVE BRIEFING
Electric Industry in Pennsylvania

CONSUMER AFFAIRS COMMITTEE

Pennsylvania House of Representatives

Representative Joseph Preston, Jr., Democratic Chairman
Prepared by Beth Rosentel

February 12, 2009


There are 11 electric distribution companies and 43 licensed electric generation suppliers operating in Pennsylvania. Rural electric cooperatives and most utilities owned and operated by cities, boroughs or townships are not regulated by the Public Utility Commission (PUC). The PUC has jurisdiction over the following 11 electric distribution companies:

Allegheny Power
Citizens Electric of Lewisburg
Duquesne Light Company
First Energy (Penn Power)
First Energy (Met Ed)
First Energy (Penelec)
PPL Electric Utilities
Philadelphia Electric Company (PECO/Exelon)
Pike County Light and Power Company
UGI Utilities, Inc.
Wellsboro Electric Company

Electricity Charges

Distribution charges are charges for the use of local wires, transformers, substations and other equipment used to deliver electricity to end-use consumers from the high voltage transmission lines. Distribution rates are regulated by the PUC.

Transmission charges are charges for moving high voltage electricity from a generation facility to the distribution lines of an electric distribution company. Transmission rates are set by FERC (Federal Energy Regulatory Commission) and are recovered through rates applied by the distribution company.

Generation charges are charges for the production of electricity. When generation is supplied by the electric company, the generation rates are regulated by the PUC. However, when generation is supplied by a wholesale supplier, the generation rates are not regulated by the PUC. Customers can choose their generation supplier.

Hot Topics

Mitigation of Potential Price Increases
Demand-Side Response Efforts
Reliability of Service
Inspection and Maintenance Standards
National Interest Electric Transmission Corridor
Expansion of Alternative Energy Portfolio Standards Act and the Effect on Electric Rates


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