Tuesday, May 28, 2024

PUC: Prepare For June 1 Electric Price Changes, UGI Electric Only Utility Increasing Rates; Explore Possible Summer Savings

On May 28, the
Public Utility Commission reminded consumers that most electric distribution companies (EDCs) across the state will be adjusting electric generation prices on June 1 for non-shopping, or default service, customers.

UGI Electric is the only electric utility increasing its quarterly rates-- this time by 5.5%, according to the PUC.

All the other electric utilities are decreasing their rates this quarter from 0.9% to 18%.

With energy prices set to increase or decrease depending on service territory, the PUC encourages consumers to stay informed about these changes and evaluate their energy options, even if they already have a contract with a competitive electric generation supplier.

Quarterly price adjustments are also made by natural gas utilities, but the PUC has not yet announced those..

Beginning June 1, electric companies that have adjusted their PTCs for residential default service customers include--  

-- Citizens’ Electric: from 9.869 to 8.089 cents per kWh (down 18%)

-- Duquesne Light: from 10.46 to 10.37 cents per kWh (down .9%)

-- Met-Ed: from 11.306 to 10.404 cents per kWh (down 8%)

-- PECO: from 9.425 cents to 9.276 cents per kWh (down 1.6%)

-- Penelec: from 10.607 to 9.744 cents per kWh (down 8.1%)

-- Penn Power: from 11.231 to 10.389 cents per kWh (down 7.5%)

-- Pike County: from 8.1852 to 8.0590 cents per kWh (down 1.5%)

-- PPL: from 11.028 to 10.04 cents per kWh (down 8.9%)

-- UGI: from 9.978 to 10.525 cents per kWh (up 5.5%)

-- Wellsboro Electric: from 9.206 to 8.132 cents per kWh (down 11.7%)

-- West Penn Power: from 10.001 to 8.787 cents per kWh (down 12.1%)

[Electric rates in Pennsylvania generally track the prices of natural gas on international markets because the state is over reliant on natural gas-fired power plants.

[59% of Pennsylvania’s electricity comes from natural gas-fired power plants, although the market is shifting dramatically to much cheaper renewable power sources.  Read more here.]

Quarterly Price Adjustments

All Pennsylvania regulated electric utilities are adjusting their Prices to Compare (PTCs) on June 1 for residential and small business non-shopping customers.  

Customers not choosing a supplier continue to receive “default service” from the utility – with the utility setting a PTC per kilowatt hour (kWh) on a quarterly or semiannually basis.  

The PUC approves a utility’s electric generation procurement plan, but does not regulate the price of the generation portion of the electric bill,  which is driven by wholesale market factors.

The PTC averages 40% to 60% of the customer’s total utility bill.  However, this percentage varies by utility and by the level of individual customer usage.

For small business customers, the PUC notes that most EDCs are also adjusting their prices to compare in their small Commercial and Industrial rate classes. 

Do A Price Checkup

It is important for every utility customer to understand their electric generation supply charges, whether through default service or a contract with a competitive supplier. 

Key questions to ask include--

-- How do competitive suppliers’ rates compare with the utility’s Price to Compare?

-- Is the supplier contract for a fixed or variable rate? If variable, what are the conditions for price changes?

-- Does the contract include monthly service fees, early termination fees, or other fees?

-- When will the contract expire, and what are the options as the end date approaches?

The PUC’s PAPowerSwitch.com energy shopping website provides consumers and small businesses with valuable information on how to shop for electric supply services. 

 It enables quick comparisons of offers from competitive suppliers against the default service rate from their local utility and provides guidance on switching suppliers or returning to default service.

Consumers are advised not to sign a contract without knowing the length, price, whether it is fixed or variable, and if there are any fees. 

 Information on fixed and variable electric rates is available on the PAPowerSwitch site.

Standard Offer Program as an Option

Consumers may explore their utility’s voluntary Standard Offer Program (Standard Offer) – an alternative for default service customers not participating in the competitive electricity market. 

Standard Offer provides the option of receiving service from a competitive supplier at a fixed price that is 7% below the utility’s current PTC. The Standard Offer price is fixed for one year and can be canceled by the customer at any time with no early cancellation or termination fees.  Availability may vary by area.

Consumers should contact their utility or visit their utility’s website for more information or to enroll in a Standard Offer Program.

End of Contract Details

The PUC continues encouraging consumers who have contracts with competitive energy suppliers to know their contract expiration dates and to carefully review contract renewal notices from suppliers detailing energy shopping options and next steps.

Shopping customers will receive two contract renewal notices from their supplier –  an Initial Notice 45-60 days prior to the contract’s expiration date and an “Options Notice” at least 30 days before their contract ends.  

The Options Notice includes important information on the supplier’s proposed changes to current terms of service as well as other consumer options – including shopping for another supplier or returning to the utility’s default service.  

Consumers can also choose to contact their current supplier to discuss other possible offers and products.

For questions about the end of their contract can contact their current supplier and, if there is a problem, contact the PUC’s Bureau of Consumer Services at 1-800-692-7380.  

More information on understanding a contract with an electric generation supplier and electric switching is available on the PAPowerSwitch website.

PUC Continues Encouraging Energy Efficiency & Conservation

The PUC also reminds families to explore energy conservation to help manage bills and reduce energy usage. PAPowerSwitch has tips for saving energy, and the PUC’s website for natural gas shopping, PAGasSwitch.com, has interactive information on ways to save energy.

[Posted: May 28, 2024]  PA Environment Digest

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