What are your electric supply options as a Pike County Light & Power Co. customer?

Beginning on January 1, 2008, new electric supply rates take effect for Pike County Light & Power Co. (PCL&P) customers. You have three options to deal with the change in rates:

OPTION 1: Stay with or select PCL&P and receive a market-based rate for electric supply.

The Pennsylvania Public Utility Commission (PAPUC) has ordered that, beginning on January 1, 2008, PCL&P must offer all customers in its territory a rate that is based on market prices. These new rates will change from month to month because they will be based on market prices for energy. Because the new rates will be based on market prices that vary from, it is not possible to predict what PCL&P's new rates for electric supply service will be.

Below is a table of historical market-based electric supply prices for 2007. This table of prices shows how prices have changed in the recent past. The chart does not show how prices will change in the future. Historically, market-based prices for electricity have been lower than fixed electricity prices, but there is no guarantee that this pattern will continue. For monthly 2008 market-based electric supply prices, view PCL&P's Price to Compare chart.

OPTION 2: Stay with Direct Energy if you are already a participant in the Direct Energy aggregation program or switch to Direct Energy and receive a fixed rate.

The PAPUC approved Direct Energy as an alternate Electric Generation Supplier (EGS) under an aggregation option available to residential and most commercial and industrial customers. This option became effective June 1, 2006, and now has been approved to continue until May 31, 2009. Effective January 1, 2008, the fixed rate for Direct Energy's aggregation program will decrease from 12.707¢/kWh to 11.90¢/kWh for all participating customers.

Customers of PCL&P will continue to have the opportunity to participate in the Direct Energy aggregation program. Customers that are currently participating in the Direct Energy aggregation program do not need to take any action to remain in the program. Customers who wish to join the aggregation program should contact Direct Energy at 1-888-734-0741. The Direct Energy fixed rate will be in effect until May 31, 2009.

OPTION 3: Switch to ConEdison Solutions and receive a fixed rate.

The terms and conditions applicable to ConEdison Solutions' fixed rate are dependent on when a customer signs up with them. ConEdison Solutions is an affiliate of PCL&P and its parent Orange and Rockland Utilities. If you are interested in a fixed rate offer from ConEdison Solutions, you can call 1-866-842-8166, or sign up at www.ConEdSolutions.com/enroll.

It takes a minimum of 15 days and up to 45 days to complete the switch, depending on your next meter reading date.

Other EGS may be making offers to PCL&P customers in the future. For an up to date list of EGS, view the list of energy suppliers.

Where you can get more information

The Office of Consumer Advocate in Pennsylvania maintains a website to help residential customers compare the current monthly price of different service offerings at: http://www.oca.state.pa.us/Industry/Electric/elecomp/pike.pdf

The price information on the website will be updated monthly.

Other important facts

If you choose an alternate electric generation supplier, everything else with regard to your PCL&P service will remain the same.

• PCL&P will still deliver the electricity to your home or business through our existing wires
• PCL&P will continue to read the meter, provide customer assistance and respond to emergencies in case of a power outage.
• PCL&P will send you one bill each month, with a separate page showing your supply costs. For your convenience, you will make only one monthly payment to PCL&P because PCL&P will pay your alternate electric generation supplier directly.
• PCL&P will work to maintain the safety and reliability of our energy delivery system.