Penelec Electric Rates Increase On June 1

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Since deregulation of the Pennsylvania electricity market took place in 1997 customers have been able to shop for their energy supply instead of being bound by the local utility rate. However, the local utility still owns and maintains the distribution network so their delivery charges remain unchanged when you choose a new supplier. Those charges will be labeled on your bill as “Charges From penelec.” There are two types of charges on a utility electric bill: delivery charges and supply charges. The delivery charges are the costs that your local utility company, such as Penelec, must charge you for the service they provide. The supply charges are what you pay per kilowatt-hour for the actual energy that is delivered to your home.

In the past most utilities in Pennsylvania owned both their generators and their distribution networks, but now they have sold off their generation plants and only focus on the delivery of power. They also hold auctions four times a year to determine the price of the electricity they will deliver to their customers. This process is called a Price to Compare, or PTC.

PTC rates are set by the state’s public utility commission. They are based on what the utility pays the power plants to generate the electricity and then transmit it over high-voltage transmission power lines to Penelec’s local electrical switch yards. From there the PTC is distributed throughout their network to homes and businesses.

Almost all of Pennsylvania’s electricity distributors, including Penelec, will be increasing their PTC rates on June 1. Only two distributors, Penn Power and Duquesne Light Co, will be decreasing their PTC. For consumers, the best way to avoid the volatility of a PTC is to lock in a competitive energy plan now with one of the many retail energy providers offering cheap supply plans for Pennsylvania.

With current competitive offers providing savings over 10% off the Penelec Price to Compare default rate, it makes sense for Pennsylvania residents and businesses to take control of their energy bills by comparing prices and choosing a plan that best meets their needs. By entering your zip code above you can find a list of competitive plans available for your area.

If you already know which plan you want to sign up for, simply click on the provider’s name and complete the signup process. Once your plan is active, you will receive a welcome email from the provider with further details about your rate and account. You will continue to receive the same safe and reliable delivery of electricity from your local utility, but your bill will now include a different portion with the name of your new supplier and their rate plan. The best part is that you can make the switch in just a few minutes! If you need help navigating the process, please contact us. We are always happy to assist you. We recommend reviewing the terms and conditions of any plan you decide to sign up for.

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