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PUC warns of electric cost increases

By: The Bradford Era |

The Pennsylvania Public Utility Commission is alerting consumers about the potential for large winter energy cost increases for electric customers who do not shop for competitive electric suppliers.

To avoid the possibility of “sticker shock” from high bills during the coming cold months, the PUC reminds consumers that the start of winter is an important time to compare prices for electric generation and evaluate competitive supplier options.

Most Pennsylvania regulated electric utilities adjusted the price they charge for the generation portion of customers’ bills on Dec. 1 for non-shopping (default service) customers, also known as the “Price to Compare” (PTC). The PTC averages 40 to 60 percent of the customer’s total utility bill. However, this percent varies by utility and by the level of individual customer usage. These recent changes in price range from a reduction of 6.3% to an increase of 24%.

As of Dec. 1, electric distribution companies reported the following changes in their PTCs for residential customers:

  • Penelec, up from 5.198 cents to 6.445 cents per kWh (24%);
  • Penn Power, up from 6.231 cents to 7.572 cents per kWh (21.5%);
  • Met-Ed, up from 5.667 cents to 6.51 cents per kWh (14.9%);
  • Citizens’ Electric, up from 6.5016 cents to 7.0986 cents per kWh (8%);
  • West Penn Power, up from 5.338 cents to 5.76 cents per kWh (7.9%); and
  • PPL, up from 7.585 cents to 7.632 cents per kWh (less than 1%).

The PUC noted that several other electric utilities, including UGI, Duquesne Light, PECO and Wellsboro Electric, have reduced their PTCs by 6.3%, 4.2%,1.4% and 1% respectively, though the PUC still encourages customers to explore their options in those service areas.

In most areas of Pennsylvania, consumers can choose who supplies their electricity, based on price or other factors, such as renewable energy.

Customers not choosing a supplier continue to receive default service from their local utility, with the cost per kilowatt hour (kWh) set quarterly or semiannually based on electric generation procurement plans developed by those utilities.