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Duquesne Light territory non-residential customers can choose between two primary supply sources, the incumbent utility Duquesne Light, or an alternative Electric Generation Supplier (EGS). For large non-residential customers the utility offers an hourly price option or a fixed price default service option. The utility products have no developmental or contract flexibility. A competitive supplier can offer a range of product types that can be developed to meet your unique and specific needs. The competitive supplier product can enable the end user to take advantage of market conditions with terms and conditions that are beneficial to both parties.
Your local electric utility company retains ownership and operational control of distributing your electricity. The distribution infrastructure is the poles, transformers and wires that distribute the electricity. The utility must provide reliable delivery or distribution service even when you choose an alternate supplier.
For residential and small commercial customers the Commission approved Duquesne's request to raise generation rates by 11.5% in the years 2005 through 2007. Duquesne will enter into a contract with its affiliate, Duquesne Power, to provide power at fixed rates. For large commercial and industrial customers there will be a competitive auction to set the rates for the fixed price service. Customers taking Fixed Price Default Service would be committed to remain on the service for the entire term of the price application period (i.e., 1/01/05 through 5/31/06 for the initial Enrollment Period). Under the Hourly Price Service (HPS) the customer pays the real-time market clearing prices within PJM applicable to its location, along with a capacity payment.
Yes, large commercial and industrial customers who remain with the utility will be subject to two adders. The retail adder is designed to compensate Duquesne for costs incurred and for risk borne, including the recovery of its administrative costs associated with conducting the auctions, and performing retail and management functions. The retail adder will also help promote retail competition. The administrative adder may only be applied to those customers on Duquesne' POLR III service and not to customers selecting and alternative Electric Generation Supplier.
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