PPL Electric Utilities will change its generation service charge Sept. 1 based on the latest costs to supply service to customers who do not choose an alternative supplier in the competitive power market.
The generation and transmission rates combined make up the price to compare for shopping purposes. It will be a slight decrease for residential customers and an increase for small-commercial customers on the utility’s default supply service.
For residential customers, the new price to compare will be 7.907 cents per kilowatt-hour, down from 7.993 cents per kilowatt-hour currently.
The price to compare makes up about two-thirds of the typical residential monthly bill. It does not include distribution charges, which apply to all customers and cover the company’s costs to deliver power and provide customer service.
For small-business customers, the new price to compare will be 10.346 cents per kilowatt-hour, compared with 9.154 cents per kilowatt-hour currently. A full list of PPL Electric Utilities’ new rates for all rate classes can be found at www.pplelectric.com/choice.
The updated rates reflect recent power supply costs, projected market costs for the next three months, and a reconciliation for undercollections from customers during the past three months.
PPL Electric Utilities adjusts its generation rates and price to compare every three months to reflect the cost of power purchases and adjustments based on customer use in the prior period. The generation rate for large industrial customers is based on hourly market prices. The company’s generation rates change March 1, June 1, Sept. 1 and Dec. 1 each year, similar to other utilities in Pennsylvania.
PPL Electric Utilities’ customers may be able to save on power supply costs by shopping with alternative suppliers. A list of state-licensed suppliers and their offer prices are available from the PUC’s website, www.PAPowerSwitch.com. More than 30 suppliers are currently serving the residential market in PPL Electric Utilities’ service area.
Nearly 585,000 PPL Electric Utilities customers, or 42 percent of all customers, obtain their power from other suppliers. About 75 percent of the total amount of energy delivered by PPL Electric Utilities comes from alternative suppliers, including almost all power used by large commercial and industrial customers.
The utility does not receive any profit on the generation portion of customers’ bills. It merely passes along the cost of that supply to customers without markup. PPL Electric Utilities’ primary focus is on electric delivery, billing and customer service.
PPL Electric Utilities, a subsidiary of PPL Corporation (NYSE: PPL).