Electricity customers comparing Pennsylvania rates are in for some good news. Both PECO and FirstEnergy Pennsylvania utilities have asked the PUC for new rates slated to take effect on September 1, 2017 and run until November 30, 2017.
PECO request for a new electric Generation Supply Adjustment (GSA) rate increases from 6.419¢/kWh to 6.443¢/kWh for residential customers. The GSA makes up the bulk of the Price To Compare (PTC), which is the rate customers pay if they choose not to sign up with a Pennsylvania Electric Generation Supplier (EGS).
A little less than one fourth of a penny (what the British once called a “farthing”) a typical residential bill (using PECO’s sample bill) using 1455 kWh will see it’s generation charges bump up by 35¢ from $93.40 to $93.75.
FirstEnergy’s Pennsylvania utilities have all requested PTC rate reductions for all residential customers. Though Met-Ed customers will see a slender rate reduction from 6.018¢/kWh to 5.995¢/kWh, Penelec, Penn Power, and West Penn Power electric rates fall from 10% to 13%.
Commercial customers will likewise see rates fall — except for Penn Power which is increasing its commercial PTC rate by 16%.
Will EGSs reduce their rates? Since they buy their electricity through the wholesale market, they are better placed to lock in long term supply contract at low rates and hedge against rising prices. But because EGSs compete against PTC pricing and each other for customers, they need to find ways to keep their rates lower and attractive.
Why Wade into the PTC Default Pool?
Because PTC rates have to be approved every three months, you don’t know the rate lurking in your future. Savvy electricity customers know they don’t need to settle for the uncertainty of one-size-fits-all when they can find plans that fit their lifestyles with lower rates at longer longer terms.
That’s why they shop by comparing the cheapest rates, reading the reviews for plans, and snagging the best deals at PA Energy Ratings..