In today’s AUSenergy News Update: Ohio PUC approves the fifth and final wholesale auction determining Duke Energy’s 2015 generation rates, City of Chicago secures a coal-free supply contract with Constellation, and Pennsylvania bans pass-throughs under fixed price contracts.

Ohio PUC Approves Default Service Auction Results at Duke Energy Ohio

Summary: The Public Utilities Commission of Ohio has approved the results of the last of five wholesale auctions that will ultimately determine Duke Energy Ohio’s electric generation rates through May 2015.
AUS Comment: The names of the winning suppliers will be released by the PUCO on December 4, 2013. AUS will keep you posted!

Constellation Wins Coal-Free Power Supply Agreement with City of Chicago

Summary: New rates secured under the 25-month agreement will deliver a 2% discount from the City’s last electricity contract, despite escalating regional transmission and other tariff costs, amounting to a reduction in City electricity costs of $1.2 million over two years.
AUS Comment: Large customers have the ability to determine the generation sources of their supply agreements. The City of Chicago, following the success of its environmentally-friendly municipal energy aggregation program, has decided to follow suit with its own municipal buildings by securing a coal-free supply contract.

Pennsylvania Bans All Pass-Throughs Under Fixed Price Contracts

Summary: The Public Utility Commission has now defined “fixed price” to mean, “An all-inclusive per kWh price that will remain the same for at least three billing cycles or the term of the contract, whichever is longer.” No pass-throughs will be allowed, not even for even for changes in law or regulation. However, the PUC will allow the retail electric supplier to terminate the fixed price contract due to such changes.
AUS Comment: Traditionally, a “fixed all-inclusive” contract still allows for suppliers to pass-through tariff or regulatory changes onto the customer. To compensate for lack of ability to pass through such changes, suppliers in PA may not price as aggressively to protect against future changes.