The Federal Energy Regulatory Commission’s decision to renew PPL Corporation’s (NYSE:PPL) market-based rate authority in Montana confirms PPL’s longstanding position that there is healthy and robust wholesale competition in the state, the company said Thursday (5/18).
“FERC has agreed there is a high level of competition in the wholesale electricity market,” said James H. Miller, PPL president and chief operating officer.
“Over the long term, consumers will benefit from this competition,” Miller said, noting that in a competitive market, independent generators – and not the citizens of Montana – bear the risks of building, owning and operating generating plants. “Over time, competition always produces better results for consumers than regulation.
“We are hopeful that this decision puts this matter to rest once and for all,” Miller said. “No one company controls the price of electricity in this region because there is so much competition.”
As part of its filing in the FERC case, PPL offered to sell at a discounted price 100 megawatts of electricity for use in Montana. The price will be $5 lower than the regional market price index. FERC accepted the offer.
Under FERC rules, PPL will not have to reapply for market-based rate authority until 2008.
Miller called on the Montana Consumer Counsel, the Montana Public Service Commission and NorthWestern Energy, the interveners in the case, to accept the FERC ruling and join PPL Montana in working to ensure that Montana consumers enjoy a reliable and competitively priced supply of electricity long into the future.
“FERC’s detailed review of this matter has led to a healthy dialog. The decision creates an opportunity for communications and cooperation that can benefit consumers in Montana and the Northwest United States,” Miller said. He noted that PPL has not yet received a copy of the FERC order.
PPL Montana, a subsidiary of PPL Corporation (NYSE: PPL), has electric generating facilities throughout the state with a combined generating capacity of about 1,200 megawatts. PPL Montana has offices in Billings, Butte and Helena and employs 500 people. The company operates coal-fired power plants at Colstrip and Billings, as well as 11 hydroelectric power plants along Rosebud Creek and the Missouri, Madison, Clark Fork and Flathead rivers. PPL EnergyPlus, another PPL subsidiary, operates a trading floor in Butte that markets and sells power in the wholesale energy market. More information about the company is available at www.pplmontana.com.
To read the FERC news release, click here.