HARRISBURG - The Pennsylvania Public Utility Commission has approved the results of a competitive-bid solicitation for a portion of the power PPL Electric Utilities needs in 2010 for residential and small-business customers who do not choose their own provider.

The PUC action completes four of the six purchases that PPL Electric Utilities will conduct to obtain default service electricity supply from the competitive market for 2010, as required by state law.

The average generation supply prices from this round of bids, representing 850 megawatts of generation, are $112.51 per megawatt-hour for residential customers and $111.94 per megawatt-hour for small commercial and industrial customers, including Pennsylvania gross receipts tax and adjustment for line losses.

If the average prices for the remaining two purchases match the prices approved so far, the bill for a residential customer of PPL Electric Utilities using 1,000 kilowatt-hours per month would increase in 2010 by 36.1 percent, or about $38.48.

Monthly bills for small-business customers would increase on average about 25 percent, while monthly bills for mid-size business customers would increase on average about 44.3 percent.

Prices in 2010 for PPL Electric Utilities’ default service option will not be known until late 2009 after all six solicitations are complete. Actual bills also will depend on how much electricity customers use and the rate schedule under which they receive service. The final two purchases are scheduled for the spring and fall of 2009.

State law requires PPL Electric Utilities, which does not own power plants and does not generate electricity, to buy power in the competitive market for its customers who do not select an electricity provider. The cost of this electricity supply is passed directly to customers without profit.

Pennsylvania consumers have the option to shop for electricity supply as an alternative to the default service prices offered by PPL Electric Utilities.

Customers of PPL Electric Utilities have few competitive options for electricity supply today because the company’s generation charge for default service remains under a rate cap that was established in the 1990s.

“Customers can offset some of the increase they may face in 2010 by taking steps to become more energy-efficient,” said David G. DeCampli, president of PPL Electric Utilities. DeCampli said the federal government estimates that typical homeowners can save as much as 30 percent on their energy bills by making energy-efficient improvements in their homes.

As part of its e-power program, PPL Electric Utilities offers the Energy Analyzer on its Web site, www.pplelectric.com, a tool that enables customers to view their daily electricity use, compare their usage with similar homes or businesses, and get customized suggestions to help reduce their electricity use.