PECO Completes 3rd Auction for 2011 Default Rates

PECO conducted the third of four auctions for power to serve customers starting in January 2011. It was the second in which the company purchased power to serve small and medium commercial and industrial customers. Those two auctions have an average price from PECO of 8.66 cents/kWh for small and 8.63 cents/kWh for medium C&I customers. The retail price for small and medium C&I came from a wholesale energy price of 7.61 cents/kWh.

Because energy prices fluctuate, PECO is buying the electricity needed to serve customers in 2011 at four different times – reducing the risk to customers of purchasing electricity all at one time when market prices could be high.  PECO will complete the remaining purchases in September 2010. The results of all four purchases will determine the exact price PECO’s customers will pay for electricity beginning Jan. 1, 2011.