Many Pennsylvanians will be caught off guard in the coming months when they start paying attention to their electric bills. Pennsylvania electric rates increase will be felt by all Pennsylvanians. As of June 1st, all utility companies operating in Pennsylvania have increased their default rate. The default rate often referred to as the price to compare, is the utility company’s price for supply or generation services for customers who have not switched over to a competing electric supplier. Residents are encouraged to check their electric bills in the coming months.
Electric Rate Increase by Utility Company
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Two of the largest utility companies in Pennsylvania are Pennsylvania Power and Light (PPL) and Philadelphia Electric Company (PECO). PPL service territory includes much of the east-central regions of the state including Allentown, Harrisburg, and Lancaster. PECO covers the city of Philadelphia. PPL customers can expect to see a rate increase of 3.1%, while PECO customers can expect an increase of 2.2%. Below is a full list of utility companies in Pennsylvania, and the percentage increase customers can expect to see on their electric bills.
- PECO – Increase from 6.267 to 6.402 cents per kWh (2.2%)
- PPL – Increase from 7.317 to 7.544 cents per kWh (3.1%)
- UGI Electric – Increase from 6.119 to 6.33 cents per kWh (3.4%)
- Duquesne Light – Increase from 7.07 to 7.41 cents per kWh (4.8%)
- Citizens’ Electric – Increase from 6.4477 to 6.9777 cents per kWh (8.2%)
- West Penn Power – Increase from 5.154 to 5.707 cents per kWh (11%)
- Wellsboro Electric – Increase from 6.3721 to 7.259 cents per kWh (14%)
- Met-Ed – Increase from 5.418 to 6.69 cents per kWh (23%)
- Penn Power – Increase from 5.721 to 7.195 cents per kWh (25.8%)
- Penelec – Increase from 4.981 to 6.462 cents per kWh (30%)
The hardest-hit area will be the Met-Ed and Penelec service areas. Residents living in these service areas are encouraged to compare electric rates and switch to a competing electric supplier for potential savings.
What is the Standard Offer Service (SOS)?
The Standard Offer Service (SOS) is the price utility companies charge to their customers for generation services. The utility companies are required by the Pennsylvania Public Utility Commission (PAPUC) to act as the supplier of last resort to residents that do not switch electric suppliers. The default rate or price to compare is a fluctuating price and is often not very competitive.
What can Residents do to Protect Themselves from Higher Energy Prices?
In 1996, the Electricity Generation Customer Choice and Competition Act was passed. This act restructured the Pennsylvania energy market and opened the door to outside energy suppliers to begin offering supply services to residents. Pennsylvanians that don’t want to be stuck on their utility’s SOS are now free to switch electric suppliers without paying a penalty. Depending on market conditions, residents have the opportunity to save 25% or more by switching to a lower supply or generation rate.
What to Look for When Comparing Electric Rates?
As the electric bills start rolling in, we can expect more Pennsylvanians to start shopping for a new electric supplier. So, what should you look for when comparing electric rates? Oftentimes, people will sign up for the lowest electric rate without reading the full disclosure of the energy plan. It is not uncommon for additional charges to show up on the electric bill that the customer was not expecting. Below are a few things you should keep an eye on while choosing a new energy plan.
- Length of Term – Energy agreements can be between three months to 48 months.
- Fixed or Variable – Most energy plans are either fixed or variable.
- Monthly Base Charge – Some energy plans can charge their customers a monthly base charge on top of the electric rate.
- Early Cancellation Fees – If you change electric suppliers too soon, then you may be hit with an early cancellation fee.
Ways to Conserve Energy
Along with lowering the supply or generation rate, conserving energy can go a long way to increase the amount saved on energy costs. Energy demand often fluctuates by season. As we approach the hotter months, we can expect to see energy consumption increase. Being conscious of the amount of energy consumed during these hotter months can help significantly reduce your energy bills. Below are a few tips one can easily take to reduce their monthly energy consumption.
Ceiling Fans
Ceiling fans may help keep the air feeling cool throughout the house while using much less energy than air conditioners.
Close Blinds
Keeping window blinds closed during the day can help reduce the amount of heat that enters your home. The more heat you can keep out, the less the air conditioners have to work.
Crack Open Windows
Cracking open the window may help circulate air throughout the house and leave it from feeling stuffy.
Smart Thermostat
Installing a smart thermostat can help reduce energy usage during peak demands. This will not only help you save energy but reduce the stress on the power grid system.