Energy Professionals Advises Pennsylvania Utility Customers to Shop Around for Lower Rates Amidst Rising Utility Costs as Winter Approaches
ERIE, Pa., Oct. 23, 2023 /PRNewswire/ — Pennsylvania business owners are bracing for another significant increase in their electricity bills.
Earlier this year, on June 1st, most utility companies in the state increased their electric rates, with their rates surging 19% to 45%, which you can see below:
Energy Professionals
|
Utility |
Previous Rate |
June 1st rate |
Increase |
||||||||||||||||
|
Met-Ed |
$0.08679 |
$0.10679 |
23% increase. |
||||||||||||||||
|
Penelec |
$0.09161 |
$0.11037 |
20% increase |
||||||||||||||||
|
Penn Power |
$0.10818 |
$0.12890 |
19% increase |
||||||||||||||||
|
West Penn Power |
$0.07529 |
$0.10957 |
45% increase |
* All of the utility rates described above are to be in effect for the six months between June 1, 2023, and Nov 30, 2023
The June 1st rate increases in Pennsylvania were not due to increased generation costs; they were due to the additional supply rate components not included in the generation of electricity (Capacity, Network Integrated Transmission Services, and Ancillaries).
Capacity alone (2nd largest component in your rate next to the energy itself) has sharply increased over the last year. We cannot control these components’ cost increases as they come from the PUC, PJM ISO, and local utilities; we can only control the timing of securing fixed rates with an independent energy supplier, which impacts the electricity generation cost.
Natural Gas is the largest source of power for the generation of electricity, declined this year to very low historical levels, and consumers still have an opportunity to secure rates with an independent energy supplier not only below their local utility’s present rates but more notably below where rates will likely average over the next 36-months.
But it was important to note this opportunity will likely be short-lived, which Ray Franklin, Energy Professional’s Senior Commodity Analyst, who diligently tracks the energy markets to keep customers updated, explained in his recent October 9th Energy Update Video.
As December nears, utility companies in Pennsylvania are posting their new rates, and rates are creeping higher due to higher electricity generation costs, leading to higher electric bills state-wide. Here, you can see some of Pennsylvania’s principal utilities and the new rates that take place in a little over a month from today:
|
Utility |
Current Rate |
Dec. 1st rate |
Add. Increase |
||||||||||||||||
|
Met-Ed |
$0.10679 |
$0.11872 |
11% increase. |
||||||||||||||||
|
Penelec |
$0.11037 |
$0.11603 |
5% increase |
||||||||||||||||
|
Penn Power |
$0.12890 |
$0.13109 |
2% increase |
||||||||||||||||
|
West Penn Power |
$0.10959 |
$0.11023 |
1% increase |
* All of the utility rates described above are to be in effect for the six months between December 1, 2023, and May 31, 2024
Pennsylvania electric customers with their local utility are looking at significantly steeper bills as we head into winter, a season traditionally known for higher energy usage.
The Pennsylvania Utility Commission (PUC) had previously advised consumers of this eventuality in May, before the first increase in electricity rates. And a statement made by local news station, ABC News 27, earlier in the year emphasized this by encouraging utility customers to shop for lower rates to avoid increased bills:
“Consumers should be made aware of the price changes and understand what rates they will be paying. The Commission is also encouraging consumers to shop around for different rates.” – ABC27
The answer for Pennsylvania businesses looking to avoid the increased financial strain lies in exploring options outside local utility pricing, also known as “PTC” or “price to compare.”
Energy deregulation in Pennsylvania allows consumers to choose an independent energy supplier. This flexibility empowers residential and commercial customers to find and negotiate for more competitive energy rates that can lead to considerable financial savings.
Energy Professionals is a trusted licensed energy consultant dedicated to helping Pennsylvania businesses minimize energy costs. With a track record spanning over two decades, the company has successfully saved businesses millions of dollars through negotiated rates and contract terms.
Recognizing the urgency of the situation, Energy Professionals has dedicated a team of licensed energy consultants to assist local businesses and established a special hotline for Pennsylvania businesses at (610) 632-1834. Customers can also visit the Energy Professionals website to schedule an obligation-free electric bill analysis.
Article by
Martino Stanzani
[email protected]
1-800-920-4631
SOURCE Energy Professionals
