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PP & L Industrial Customer Alliance v. Pennsylvania Public Utility Commission

In action where plaintiff petitioned for an order prohibiting implementation of a tariff interpretation change to plaintiff's billing method for customers who purchase generation supply from another supplier, dismissal of petition affirmed because the Public Utility Commission adequately explained its decision based on substantial evidence, and it was entitled to substantial deference.

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Argued: June 6, 2001

PP & L Industrial Customer Alliance (PPLICA) *fn1 appeals from an order of the Pennsylvania Public Utility Commission (PUC) dismissing its petition requesting a declaratory order prohibiting the implementation of a tariff interpretation change to PP & L’s billing method for customers who purchase generation supply from another electric generation supplier and an order denying its request for reconsideration.

Historically, electric utilities in Pennsylvania provided three services to customers: the generation, transmission and distribution of electricity. These “bundled” services were performed by one local utility that held a monopoly over its service area. However, to encourage a competitive wholesale electric market and provide cost savings to consumers, in December 1996, the Electricity Generation Customer Choice and Competition Act (Competition Act) was enacted. *fn2 This Act “unbundled” or separated the three traditional functions and allowed Pennsylvania residents to choose to purchase their electricity from other in-state or out-of-state electric generation suppliers (EGS) who would generate and sell electricity directly to the consumers. If the consumers chose to purchase their electricity from another supplier other than the local utility, the local utility, also referred to as an electric distribution company (EDC), still remained responsible for the transmission and distribution of the electricity.

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