from Pennsylvania Public Utility Commission
Photo courtesy of Doris Morgan on Unsplash
The Pennsylvania Public Utility Commission (PUC) reminds consumers that energy supply prices for all PUC-regulated electric utilities will adjust on Dec. 1. To help manage winter energy bills, the PUC urges consumers to explore #SaveInPA tools like energy shopping, conservation tips, and assistance programs.
During cold weather months, the cost of electricity can account for more than half of a typical customer bill, so the price of that energy is very important – as are #SaveInPA opportunities to manage bills – including shopping with competitive suppliers and reducing energy usage in their homes and businesses.
Understand How Energy Price Changes Impact Your Bill
Electric bills have two primary components:
- 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” (PTC).
- 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. This charge is set by the PUC as part of periodic rate cases filed by the utilities. These rates generally remain stable for multiple years.
It is essential for utility customers to understand what they are paying for energy supply costs, either through default service from their utility or a contract with a competitive energy supplier.
Electric – Dec. 1 PTC Adjustments for Residential Customers
On Dec. 1, residential non-shopping customers will see changes in the PTC across all utilities:
- Citizens’ Electric, increase from 8.089 to 8.696 cents per kWh (+7.5%);
- Duquesne Light, decrease from 11.85 to 10.85 cents per kWh (-8.4%);
- Met-Ed, increase from 10.404 to 11.011 cents per kWh (+5.8%);
- PECO, virtually unchanged from 9.244 to 9.273 cents per kWh;
- Penelec, increase from 9.744 to 10.474 cents per kWh (+7.5%);
- Penn Power, increase from 10.389 to 11.168 cents per kWh (+7.5%);
- Pike Co. Light & Power, estimated increase from 8.059 to 10.5758 cents per kWh (+31.2%);
- PPL, increase from 10.04 to 10.771 cents per kWh (+7.3%);
- UGI Electric, decrease from 11.064 to 10.637 cents per kWh (-3.9%);
- Wellsboro Electric, increase from 8.132 to 9.134 cents per kWh (+12.3%); and
- West Penn Power, increase from 8.787 to 9.481 cents per kWh (+7.9%).
The PTC averages 40% to 60% of the customer’s total utility bill, however, the actual impact on total bills will vary based on many factors, including the weather, the age and efficiency of your heating system, and the level of individual customer usage. The Commission does not regulate prices for the generation portion of electric bills – which are driven by the regional energy market.
Dec. 1 PTC Adjustments for Small Business Customers
For small business customers, the PUC notes that most EDCs are also adjusting their PTCs on Dec. 1 in their small commercial rate classes.
Among the state’s major EDCs, price changes in default service rates for small businesses will vary. For example, PPL small business customers will see a PTC increase of more than 13%, while PTC increases in the FirstEnergy service territories (Met-Ed, Penelec, Penn Power, and West Penn Power) range between 1% and 9%. Meanwhile, small businesses in the Duquesne Light service territory may see a PTC decrease of more than 12%, and UGI small business customers will see a PTC drop of approximately 4%.
#SaveInPA – Energy Shopping Options
In most areas of Pennsylvania, consumers can choose who supplies their electricity – based on price or other factors, such as renewable energy.
PAPowerSwitch.com is the PUC’s official electric shopping website and currently reflects #SaveInPA benefits for consumer energy costs, depending on their utility service territory.
PAPowerSwitch.com is a neutral source for power shopping information, operating independently of competitive supplier websites. There are other websites online that may appear to be PAPowerSwitch or affiliated with the PA PUC. Please use caution to ensure you are choosing the PUC’s official and neutral shopping site.
PAPowerSwitch.com provides residential and small business energy shoppers 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 about switching to a competitive supplier or returning to default service, should they choose.
The PUC recommends that consumers regularly review their contracts and bills from electric suppliers to be familiar with key factors like pricing, term length, and fees, including monthly fees and cancellation fees. Competitive offers may not be available in all areas.
Additionally, PAPowerSwitch.com enables consumers to customize energy plans, sign up for rate change alerts, and obtain information on energy efficiency and conservation.
Standard Offer Program
As another alternative for default service customers not participating in the competitive electricity market, Pennsylvania’s larger electric utilities may offer a voluntary Standard Offer Program (SOP) – 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 or to enroll in an SOP.
Understand the Impact of Winter Weather
Energy usage is a key factor in the size of winter energy bills, and there are many ways that consumers can control that usage. Energy-saving tips include:
- Adjust your thermostat: Lowering it by 1 degree can save up to 3%.
- Service your furnace: Clean filters and maintenance improve efficiency.
- Seal and insulate: Prevent drafts with weatherproofing and insulation.
- Optimize ceiling fans: Use clockwise rotation to circulate warm air.
- Adjust your water heater: Lowering the temperature can reduce costs.
For struggling households already impacted by higher energy costs as winter sets in, the PUC continues to encourage them to #CallUtilitiesNow – noting that direct conversations between customers and utilities are the best “first step” in addressing outstanding bill balances and discussing utility assistance programs.
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Source: bctv