Credit: PECO.
The Pennsylvania Public Utility Commission (PUC) is notifying residents that energy supply prices for all PUC-regulated electric utilities will change on Dec. 1.
These seasonal rate adjustments are important as winter approaches, when electricity used for heating can make up more than half of a typical household’s monthly bill.
According to the announcement, PECO's rate will increase from 10.4 to 11.024 ¢/kWh, which represents a 6% increase.
"As part of the restructuring of Pennsylvania’s electric market, the price of electricity is now based on wholesale market prices," PECO said in a statement.
"Deregulation has transformed utilities like PECO from a company that produced electricity to a company that now purchases electricity. PECO purchases electricity, for customers not purchasing the electricity they use from a competitive electric generation supplier, and delivers electricity to all customers through our neighborhood poles and wires."
The PUC is encouraging anyone concerned about rising winter energy costs to reach out to their utility now. Residents can discuss affordability programs, payment options, and other assistance designed to help them stay connected throughout the colder months.
People's electric bill is made up of two main parts:
• Generation/Supply Charge – This reflects the cost of the actual electricity you use. The rate is set by your competitive supplier if you choose to shop for energy, or by your utility’s “Price to Compare” (PTC) if you do not.
• Delivery/Distribution Charge – This covers the cost of delivering electricity to your home or business, including poles, wires, and system maintenance. These charges are set by the PUC through periodic rate cases and usually remain steady for several years.
For residential customers, the supply charge (Price to Compare) typically represents 40% to 60% of the total electric bill. The exact impact on your monthly statement will depend on weather conditions, your home’s heating efficiency, and your personal energy use. While the PUC oversees how utilities deliver electricity, it does not control wholesale energy prices, which are driven by regional market conditions.
