GPU Energy has filed electric restructuring proposals for its subsidiaries with the Pennsylvania Public Utilities Commission, calling for stranded cost recovery through a customer charge.
The filing for subsidiaries Metropolitan Edison Co. and Pennsylvania Electric Co. estimates stranded costs of $641 million and $372 million, respectively. The utilities want to recover stranded costs through implementation of a competitive transition charge paid by all customers using GPU Energy's distribution system. The utilities have asked to recover in rates the costs of previously approved contracts with nonutility generators. GPU expects to offset part of those costs through issuance of transition bonds. It will ask the PUC later this year for authority to securitize part of its stranded costs.