Electric generation rates set to rise in September

Aug. 13—Penelec and Penn Power customers who don't shop around for an electricity supplier will see the supply cost portion of their electric bill jump by about 19 percent next month.

This week, Pennsylvania Public Utility Commission announced five electric companies including Penelec and Penn Power will raise supplier rates starting Sept. 1.

There are two portions for which electric consumers are charged: electric supply and delivery.

The Pennsylvania PUC estimates the Price to Compare, the fee on the bill distributors like Penn Power and Penelec charge for electric supply, accounts for 40 percent to 60 percent of consumers' bills on average.

The PUC doesn't regulate prices for the electric supply portion of electric bills, which are driven by market forces.

The distribution or delivery service charge, which is a PUC-regulated rate, covers the cost of operating and maintaining the infrastructure that delivers electricity to homes and businesses.

Effective Sept. 1, the quarterly adjustment per kilowatt hour for the Price to Compare for Penn Power goes from 8.694 cents to 10.348 cents, up 19 percent; and for Penelec, it goes from 8.443 cents to 10.021 cents, up 18.7 percent.

It will be the second straight quarterly adjustment upward for both Penn Power and Penelec.

On June 1, Penn Power went from 7.082 cents to the current 8.694 cents, up 22.7 percent; and for Penelec, it went from 6.232 cents to the current 8.443 cents, up 35.4 percent.

Penn Power serves Conneaut Lake and southwestern Crawford County while Penelec serves the other areas of Crawford County.

Customers of Northwestern Rural Electric Cooperative Inc. of Cambridge Springs, a nonprofit electric cooperative which serves the rural areas of the county, are unaffected by the generation rate increase.

"Although cooperatives choose to follow PUC guidelines, we are exempt from PUC governance and therefore, retail choice," Amy Wellington, Northwestern REC's director of communications, said. "Because we own so much of our own generation, there are no electric generation suppliers that could match or beat our rates."

The PUC allows utilities to reset electric supply prices up or down several times per year based on the cost of obtaining the energy that non-shopping customers use.

Because of the continued impact of higher-than-normal energy prices, the PUC recommends consumers explore ways to manage their utility expenses. Those include utilizing energy efficiency and conservation measures, closely monitoring electric bills, reviewing supplier contracts, and discussing affordability programs with their utilities.

Customers can shop for alternative electric supply rates at PAPowerSwitch.com.

At the website, customers may find multiple offers based on price, contract length and other factors so they can determine if they can find a better rate.

Another option is the PUC's Standard Offer Program.

The PUC launched the Standard Offer Program in 2013 to give non-shopping customers greater access to the competitive electricity market.

The Standard Offer Program is voluntary and made available to all residential and small business customers.

A customer may enroll in the Standard Offer Program by contacting their utility and requesting to enroll.

The PUC also requires electric utilities to make the Standard Offer Program available to certain customers calling the utility (such as customers with a high bill complaints).

If the customer is interested, the utility assigns a randomly selected electric generation supplier to serve the customer.

The supplier will provide a Standard Offer, which is a fixed-rate price, 7 percent below the electric utility's current Price to Compare for one-year with no cancellation or termination fee. A Standard Offer customer may cancel the agreement at any time.

For example, an electric utility's current Price to Compare is 10 cents per kilowatt hour, the customer enrolling in Standard Offer pays 9.3 cents per kilowatt hour — a 7 percent discount with the rate staying at 9.3 cents per kilowatt hour for one year.

Eric Scicchitano, CNHI News' Harrisburg reporter contributed to this report.

Keith Gushard can be reached at (814) 724-6370 or by email at .