The Public Utilities Commission is encouraging consumers to prepare for energy price changes on December 1, save energy and manage bills

from the Pennsylvania Public Utility Commission

Photo courtesy of Doris Morgan on Unsplash

The Pennsylvania Public Utility Commission (PUC) reminds consumers that utility rates for all electric utilities regulated by the PUC will be adjusted on December 1. To better manage winter energy bills, the PUC urges consumers to try #SaveInPA tools such as energy shopping, savings tips and assistance programs.

During cold weather months, electricity costs can account for more than half of a typical customer bill, so the price of that energy is very important – as are #SaveInPA ways to manage bills – including purchasing from competitive suppliers and reducing energy use their homes and businesses.

Understand how energy price changes affect your bill

Electricity bills have two main parts:

• Generation/supply fee – This fee covers the cost of the energy (electricity or natural gas) used during the month – and this fee depends on 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 competing provider or, for consumers who do not purchase, by the energy provider’s Price to Compare (PTC).
• Delivery/Distribution Fee – This fee covers the cost of operating and maintaining the poles, wires, pipes and other infrastructure that provides energy to your home or business. This portion of your monthly bill supports your local energy provider. Consumers are not allowed to use energy supply/distribution services. This fee is determined by the PUC as part of periodic utility rate applications. These rates generally remain stable over several years.

It is important for energy suppliers to understand what they will have to pay for energy supply costs, whether through their energy supplier’s standard service or through a contract with a competing energy supplier.

Electricity – December 1 PTC adjustments for residential customers

On December 1, residential non-purchase customers will see changes in the PTC of all utilities:

• Citizen streamIncrease from 8.089 to 8.696 cents per kWh (+7.5%);
• Duquesne lightreduce from 11.85 to 10.85 cents per kWh (-8.4%);
• Met EdIncrease from 10.404 to 11.011 cents per kWh (+5.8%);
• PECOpractically unchanged from 9.244 to 9.273 cents per kWh;
• PenelecIncrease from 9.744 to 10.474 cents per kWh (+7.5%);
• Penn PowerIncrease from 10.389 to 11.168 cents per kWh (+7.5%);
• Pike Co. Light & Powerestimated increase from 8.059 to 10.5758 cents per kWh (+31.2%);
• PPLIncrease from 10.04 to 10.771 cents per kWh (+7.3%);
• UGI ElectricDecline from 11.064 to 10.637 cents per kWh (-3.9%);
• Wellsboro ElectricIncrease from 8.132 to 9.134 cents per kWh (+12.3%); And
• West Penn PowerIncrease from 8.787 to 9.481 cents per kWh (+7.9%).

The PTC averages 40 to 60% of the customer’s total electricity bill. However, the actual impact on the overall bill depends on many factors, including the weather, the age and efficiency of your heating system, and the level of individual usage by the customer. The Commission does not regulate prices for the generation portion of electricity bills – these are determined by the regional energy market.

Dec. 1 PTC adjustments for small business customers

For small business customers, the PUC notes that on December 1, most EDCs are also adjusting their PTCs in their small business rate classes.

The state’s large EDCs will vary in price changes to standard service rates for small businesses. For example, PPL small business customers will see a PTC increase of more than 13%, while the PTC increase in FirstEnergy’s service areas (Met-Ed, Penelec, Penn Power and West Penn Power) will be between 1% and 9%. Meanwhile, small businesses in the Duquesne Light service area could see a PTC decline of more than 12%, and UGI small business customers will see a PTC decline of approximately 4%.

#SaveInPA – Energy purchasing 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 electrical shopping website and currently offers #SaveInPA benefits on consumers’ energy costs, depending on the service area.

PAPowerSwitch.com is a neutral source of power shopping information that operates independently of competing websites. There are other websites on the Internet that may appear to be PAPowerSwitch or affiliated with PA PUC. Please be careful to ensure that you choose PUC’s official and neutral shopping site.

PAPowerSwitch.com provides residential and small energy buyers with valuable information about purchasing utility services – allowing consumers to quickly compare competitive provider quotes with their local energy provider’s standard rates and learn more about switching to a competitive provider or returning to standard service if they wish .

The PUC recommends that consumers regularly review their utility contracts and bills to become familiar with key factors such as pricing, term and charges, including monthly charges and cancellation fees. Competitive offers may not be available in all regions.

Additionally, PAPowerSwitch.com allows consumers to customize energy plans, sign up for rate change alerts, and receive energy efficiency and savings information.

Standard Offer Program

As another alternative for standard service customers who do not participate in the competitive electricity market, Pennsylvania’s larger utilities may offer a voluntary standard offering program (SOP), which offers these customers the opportunity to receive service from a competitive provider at a fixed rate of 7% below current PTC of the utility company. The SOP price is fixed for one year and can be canceled by the customer at any time without early repayment or termination fees.

Consumers should contact their energy provider or visit their website for more information or to sign up for an SOP.

Understand the effects of winter weather

Energy consumption is a key factor in winter energy bills, and there are many ways consumers can manage this consumption. Energy saving tips include:

• Adjust your thermostat: A reduction of 1 degree can save up to 3%.
• Maintain your oven: Clean filters and maintenance improve efficiency.
• Seal and insulate: Prevent drafts through weather protection and insulation.
• Optimize ceiling fans: Use clockwise rotation to circulate warm air.
• Adjust your water heater: Lowering the temperature can reduce costs.

For households already impacted by higher energy costs with the onset of winter, the PUC continues to recommend using #CallUtilitiesNow – noting that direct conversations between customers and utility companies are the best “first step” to clear outstanding bill balances and assistance programs for utilities to discuss.