§ 69.1803. Definitions. The following and terms, when used in this section and § § 69.1801, 69.1802 and 69.1804—69.1817, have the following meanings, unless the context clearly indicates otherwise: * * * * * The term has the same meaning as defined in 66 Pa. C. S. § 2803 Bilateral contract – (relating to definitions). * * * * * The [incumbent EDC within a certificated DSP—Default service provider- service territory or a Commission approved alternative supplier of electric generation service.] term has the same meaning as defined in 66 Pa.C.S. § 2803 (relating to definitions). * * * * * Prices that are available in the wholesale market at particular Prevailing market prices- points in time for electric generation supply. * * * * * § 69.1805. Electric generation supply procurement. A proposed procurement plan should balance the goals of allowing the development of a competitive retail supply market and also including a prudent mix of arrangements to minimize the risk of over-reliance on any energy products at a particular point in time. In developing a proposed procurement plan, a DSP should consider including a prudent mix of supply-side and demand-side resources such as long-term, short-term, staggered-term and spot market purchases to minimize the risk of contracting for supply at times of peak prices. Short-term contracts are contracts up to and including 3 4 years in length. contracts are contracts neither less GREATER than 4 years nor IN LENGTH BUT NOT greater than 20 years in length. Long-term contracts should only be used when necessary and required for DSP compliance with alternative energy requirements, and should be restricted to covering a relatively small portion of the default service load. An over-reliance on long-term contracts would mute demand response, create the potential for future default service customers to bear future above market costs and limit operational flexibility for DSPs to manage their default service supply. LONG-TERM CONTRACTS OF GREATER THAN 4 YEARS IN LENGTH BUT NOT GREATER THAN 20 YEARS SHOULD NOT CONSTITUTE MORE THAN 25% OF THE DEFAULT SERVICE PROVIDER’S PROJECTED LOAD UNLESS THE COMMISSION DETERMINES THAT A GREATER PORTION OF LOAD IS
§ 69.1803. Definitions. The following and terms, when used in this section and § § 69.1801, 69.1802 and 69.1804—69.1817, have the following meanings, unless the context clearly indicates otherwise: * * * * * Bilateral contract – The term has the same meaning as defined in 66 Pa. C. S. § 2803 (relating to definitions). * * * * * DSP—Default service provider- The [incumbent EDC within a certificated service territory or a Commission approved alternative supplier of electric generation service.] term has the same meaning as defined in 66 Pa.C.S. § 2803 (relating to definitions). * * * * * Prevailing market prices- Prices that are available in the wholesale market at particular points in time for electric generation supply. * * * * * § 69.1805. Electric generation supply procurement. A proposed procurement plan should balance the goals of allowing the development of a competitive retail supply market and also including a prudent mix of arrangements to minimize the risk of over-reliance on any energy products at a particular point in time. In developing a proposed procurement plan, a DSP should consider including a prudent mix of supply-side and demand-side resources such as long-term, short-term, staggered-term and spot market purchases to minimize the risk of contracting for supply at times of peak prices. Short-term contracts are contracts up to and including 3 4 years in length. contracts are contracts neither less GREATER than 4 years nor IN LENGTH BUT NOT greater than 20 years in length. Long-term contracts should only be used when necessary and required for DSP compliance with alternative energy requirements, and should be restricted to covering a relatively small portion of the default service load. An over-reliance on long-term contracts would mute demand response, create the potential for future default service customers to bear future above market costs and limit operational flexibility for DSPs to manage their default service supply. LONG-TERM CONTRACTS OF GREATER THAN 4 YEARS IN LENGTH BUT NOT GREATER THAN 20 YEARS SHOULD NOT CONSTITUTE MORE THAN 25% OF THE DEFAULT SERVICE PROVIDER’S PROJECTED LOAD UNLESS THE COMMISSION DETERMINES THAT A GREATER PORTION OF LOAD IS
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