PPL electricity rates to decrease Friday
The Pennsylvania Public Utility Commission said many utilities are adjusting their energy supply prices on Friday.
PPL’s price to compare rate will decrease from 12.126 cents to 11.028 cents per kWh, a decrease of 9%.
Met-Ed will increase from 10.24 cents to 11.306 cents per kWh, an increase of 10.4%
The PTC averages 40% to 60% of the customer’s total utility bill. However, this percent varies by utility and by the level of individual customer usage.
In purchasing electricity for default service customers, the PUC notes that electric utilities are required to meet a “prudent mix” requirement of spot market, short-term, and long-term purchase contracts. Plus, over time, the utilities must procure energy at the least possible cost to customers.
However, the commission does not regulate prices for the generation portion of electric bills. Generation prices are separate from the closely-regulated rates that utilities charge for their distribution services – the delivery of electricity to homes and businesses.
There are three key factors for every consumer to consider when preparing for winter energy bills: the cost of energy. the amount of energy you use and of course the weather.
It’s the combination of all three that drives the size of monthly utility bills. While consumers cannot control the weather, they can reduce energy use and shop for an energy supplier to lower their utility bills.
It is important for consumers to understand the two major parts of their monthly electric or natural gas bills:
Generation/supply charge – This charge covers the cost of the energy (electricity or natural gas) used during the month – and this charge is influenced by whether a customer chooses to “shop” for their energy services. The energy cost for this portion of the bill is determined by a consumer’s contract with a competitive supplier or, for consumers who do not shop, the utility’s “Price to Compare.”
Delivery/distribution charge – This charge includes the cost for the operation and maintenance of the poles, wires, pipelines and other infrastructure that delivers energy to your home or business. This portion of your monthly bill supports your local utility. Consumers may not shop for energy delivery/distribution services.
UGI Utilities will decrease 41% from $0.7761 to $0.45335 per Ccf.
During cold weather months, the cost of energy used – either electricity or natural gas – can account for more than half of a typical customer bill, so the price of that energy is important.
In most areas of Pennsylvania, consumers can choose who supplies their electricity based on price or other factors, such as renewable energy – as well as who supplies their natural gas. Competitive offers may not be available in all areas.
The PUC’s PAPowerSwitch and PAGasSwitch energy shopping websites provide consumers and small businesses with valuable information on how to shop for supply services – enabling consumers to quickly compare offers from competitive suppliers against the default service rates from their local utilities and learn more on switching to a competitive supplier, or returning to default service, should they choose.
As another alternative for default service customers not participating in the competitive electricity market, Pennsylvania’s regulated utilities offer a voluntary Standard Offer Program – providing those customers with the option of receiving service from a competitive supplier at a fixed-price that is 7% below the utility’s current PTC. The SOP price is fixed for one year and can be canceled by the customer at any time with no early cancellation or termination fees.
Consumers should contact their utility or visit their utility’s website for more information.