Residential customers: 4.976; 5.057; 5.173
Small Commercial and Industrial: 5.450; 5.541; 5.665

The current switching rules are posted to the Web site.

Please note that the Commission has the authority to modify these switching rules consistent with the Public Utility Code.

PPL Electric Utilities will report to PJM loads that include all distribution and transmission losses (including PJM assigned 500kV losses and unaccounted for energy). PJM will loss derate those loads for settlement purposes (see PJM Marginal Loss Implementation Details at http://www.pjm.com/markets/marginal-losses/downloads/implementation-countdown.pdf). Suppliers will be paid based on the loss derated load.

PPL Electric's most recent 10-Q filing enumerates "...average generation supply prices (per MWh), including Pennsylvania gross receipts tax and an adjustment for line losses..." for the first three POLR solicitations. Can you please provide numerical detail on the gross receipts tax, the line loss adjustment, and any other components (such as NITS or other transmission costs) that might be included in these prices?

In addition to the wholesale cost of supply, the primary costs included in the prices are Gross Receipts Tax (GRT) and the adjustment for line losses. The amount of the GRT is 5.9%, as specified in the Pennsylvania Department of Revenue's 2007-2008 Estimate Documentation (available at http://www.revenue.state.pa.us/revenue/lib/revenue/2007_08_Est_Doc.pdf), and it is applied as follows: Price = (Taxable Amount)/(1 - GRT).

Losses affect the generation supply prices as customers are billed for volumes excluding losses which are lower than the volumes that suppliers are responsible for and paid for which include losses. The unit prices charged to customers must be higher to provide sufficient revenue to recover amounts paid to suppliers. PPL Electric Utilities billed sales which exclude losses and loads which include losses are provided at http://www.pplelectric.com/Business+Partners/polr-cbp/Rate+Categories+and+Load+Data.htm. Please note that monthly billed sales represent load that can be spread over two months. Hence hourly loads and monthly billed sales must be viewed over long time periods to get an idea of loss related differences in these values. Loss factors can also be viewed by class from PPL's EGS tariffs. These are available at http://www.pplelectric.com/Business+Partners/Tools+and+Reference+Center/
Tariff+Rates+and+Rules/Electric+Tariff/Generation+Supplier+Coordination/Load+Forecasting.htm.

Also please note that PPL reports to PJM loads that include all distribution and transmission losses (including PJM assigned 500kV losses and unaccounted for energy). Those reported losses will reflect losses from the sources described above. Beginning June 1, 2007, PJM began to loss derate those loads for settlement purposes (see PJM Marginal Loss Implementation Details at http://www.pjm.com/markets/marginal-losses/downloads/implementation-countdown.pdf). Suppliers will be paid based on the loss derated load.

NITS is excluded from the supplier's responsibility. Please see Exhibit D of the PPL POLR Supply Master Agreement for an explanation of PJM invoice line-item responsibility.

PJM has announced its intent to implement weekly (as opposed to monthly) settlements sometime in 2009. Should this change in PJM settlement frequency take effect, will PPL Electric adopt a similar schedule for paying POLR Suppliers, or will the current monthly payment schedule be retained?

Is there any data available as to the number of customers that have signed up for the rate mitigation/phase-in option? Is it possible to obtain a breakdown of these customers by rate class?

As of July 31, 2009, 126,000 customers are registered for the rate mitigation program.

Individual bid prices awarded to suppliers are not disclosed. However, following each solicitation PPL Electric provides a news release that provides the average generation supply prices for each customer group. These news releases can be found on the RFP Web site: http://www.pplelectric.com/Business+Partners/polr-cbp/RFP+Results.htm

The approach PPL Electric followed to calculate the average generation supply price for each customer group (residential, and small commercial and industrial) resulting from a given solicitation is provided in Customer and Rates FAQ-18.

Large C&I customers who have not elected to be part of this RFP to receive fixed priced service in 2010 will either take service from an EGS or be placed on hourly service if they choose to take service from PPL Electric.

Large C&I customers who have elected to be part of this RFP to receive fixed priced service in 2010 will either take service from an EGS or take hourly service from PPL Electric if they choose not to accept the annual fixed price within 30 days of the close of the solicitation.

Large C&I customers who have elected to be part of this RFP to receive fixed priced service in 2010 and subsequently accept the annual fixed price within 30 days of the close of the solicitation will be placed on fixed price service in 2010. These customers are free to switch to take service from an EGS during 2010, but will be placed on hourly service if they return to take service from PPL Electric.

Please note that PPL does not supply winning suppliers with specific customer shopping information. Customers who choose to shop no longer take POLR supply. Once these customers sign a contract with an EGS, the EGS must submit an EDI transaction form to PPL Electric stating the change from the customer, which must be submitted at least 16 days prior to a meter reading date. PPL Electric then informs PJM of this change - PJM then submits the PLC values to PPL Electric who in turn delineates what is POLR load (divided up among EGS’s who have won POLR supply) and what is assigned to specific EGS’s based upon shopping the day after supply occurs. PPL Electric will not know the exact POLR load number until the day after the load is supplied, when we submit a back-cast to PJM with the break-outs. PPL Electric will provide forecasted PLC values to each supplier according to section 3.3 of the POLR SMA which states, “On each Business Day, Buyer shall provide to the Seller on a reasonable efforts basis, Buyer’s estimation of the PLC for the seventh (7th) following day, representing the Seller’s Specified Percentage of each Service Type….” These values are subject to change, however until the back-cast is submitted, as explained above. No customer specific data is supplied.

Large C&I Customers that have not opted-in to the solicitation to receive fixed price service in 2010 will be placed on hourly service by default if they choose to receive service from PPL Electric. There is no notification required from the part on the part of customers to receive hourly service and thus it is not known at this time the number or percentage of customers that intend to take this service.  Any customers that have not opted-in to the solicitation to receive fixed price service in 2010 will no longer be eligible to receive fixed price service in 2010, but may switch to receive service from an EGS.

Please note that to be on fixed price service, customers must have elected (by July 27) to be included in this solicitation for fixed price service in 2010 and must affirmatively accept the annual fixed price within 30 days of solicitation close (by Nov. 9). If a customer does not affirmatively accept the annual fixed price within the specified deadline, the customer will be placed on hourly service with PPL Electric.