How will my PECO electric bill be affected?
On December 20, 2018, The Pennsylvania Public Utility Commission (PUC) approved a $24.9 million rate increase for PECO Energy Co. In March last year, PECO filed for a rate increase of $81.9 million, making the ruling a 1.2% increase rather than the originally requested 3.2%. So how will this affect your electricity bill going forward?
Will my PECO bill increase?
The ruling by PUC means the settlement figure for PECO is roughly a 70% reduction upon the figure they originally asked for. The request for an $81.9 million increase was denied, but they did approve a $24.9 million revenue increase instead. This may be less, but it still means an increase for PECO customers on their future bills. Starting January 1, 2019, residential customers will see a 1.2% increase on their average monthly energy bills. For a household that uses 700 kWh per month, this would see bills increasing from $102.65 to $103.92, a $1.27 increase each month.
This increase comes from the fixed monthly charge that all customers pay. PECO originally asked to increase the current $8.45 monthly charge to $12.50, but instead settled for an increase to $10.00 each month. Utilities have been attempting to move some of their per kWh charges to fixed fees to recuperate costs in order to make them less dependent on the volume of electricity sales each month.
PECO customers to receive a one-time credit!
Another ruling from the settlement, however, ordered PECO to refund $68 million in savings from the federal Tax Cuts and Jobs Act of 2017. Residential customers can expect to see a one-time bill credit on their January 2019 electric bills, with larger commercial and industrial customers to receive their refunds spread out over the year. The average customer bill credit will be around $25.61, off-setting the price of the rate increase throughout the year. Customers will receive a detailed insert outlining the one-time credit and rate increases with their January bill, and those who have signed up for the PECO email service will also receive a detailed email about it as well.
Keep up to date on electricity matters with PA Ratings!
While PECO’s rates will be increasing in 2019, the one-time credit will help to offset the initial rise. You can keep up to date with further changes right here, and don’t forget, you can head over to https://www.paenergyratings.com/electricity-rates to explore further PECO plans right now.