Rate hikes to send summer energy costs soaring
Electric distribution utilities are scheduled to hike generation rates by double digits in several cases for default customers effective June 1.
The new rates affect the residential default customers who buy electric power from the utility that distributes power in their geographic service territory. That’s about 80% of residential electric customers. They don’t use the option to shop for a retail company selling electric power under Pennsylvania’s electric deregulation law.
The increases mean higher summer energy costs due to more use of air conditioning and cooling systems during heat waves, the state Public Utility Commission (PUC) said.
The latest boost to electric costs comes as elected officials in Harrisburg have sponsored legislation to address affordable energy, but have yet to bridge partisan differences over the issue.
Utilities adjust their Price to Compare (PTC), the cost per kilowatt hour, for default customers on June 1 and Dec. 1. This reflects costs for generating electricity from power plants and other sources.
The PTC averages 40% to 60% of a customer’s total electric bill.
Cost pressures
Companies attribute the hikes to increased costs for electricity purchased in recent competitive auctions for the wholesale market by PJM, the regional electric transmission network. Companies pass these costs to default customers.
The PJM auction is affected by supply and demand issues with increasing demand for electric power after a decade of flat demand.
The PUC said default customers can shop for a competitive supplier or take steps like upgrading HVAC systems, buying energy efficient appliances and unplugging unused electronics to conserve energy. Utilities offer customers flexible payment plans, bill assistance programs, rebates and energy savings tools like home audits.
Price to Compare rates
The new rates are:
Citizens’ Electric, estimated 13.21 cents per kilowatt hour, a .05% increase
Duquesne Light, estimated 14.14 cents per kilowatt hour, a 2.84% increase
Met-Ed, 13.951 cents per kilowatt hour, a 7.6% increase
PECO, estimated 11.572 cents per kilowatt hour, a 4.97% increase
Penelec,13.142 cents per kilowatt hour, a 11.88% increase
Penn Power, 13.477 cents per kilowatt hour, a 6.9% increase
PPL, 13.147 cents per kilowatt hour, a 1.5% increase
Pike County Light and Power estimated 13.43 cents per kilowatt hour, a 19.8% increase
UGI Electric, 12.617 cents per kilowatt hour, a 12.53% increase
West Penn Power, 12.075 cents per kilowatt hour, a 10.3% increase
Wellsboro Electric, 12.556 cents per kilowatt hour, a 1.65% increase
Electric utilities levy a separate delivery/distribution charge for the cost of poles, wires and other infrastructure.



