Power Supply Rate to Drop for PPL Electric Utilities Customers


Generation Service Charge, ‘Price to Compare’ to Change Sept. 1

Allentown, PA – In a filing with the state Public Utility Commission on Monday (8/22), PPL Electric Utilities updated its generation rates and price to compare for the three months beginning Sept. 1 to reflect the most recent power supply costs and projected market costs for the next three months. The new generation rates for residential and small-commercial customers on the utility’s default supply service will be lower.

The new rates also reflect the reconciliation of collections from customers with the company’s power supply costs so far this year. A full list of PPL Electric Utilities’ new rates for all rate classes can be found at www.pplelectric.com/choice.

The new price to compare for residential customers will be 8.411 cents per kilowatt-hour. The current rate is 8.774 cents per kilowatt-hour.

This price applies to residential customers who have not chosen a competitive supplier and receive “default” supply service from PPL Electric Utilities. The price to compare includes generation and transmission service, which makes up 65 to 70 percent 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.

Small-business customers
For small-business customers, the default rate and price to compare will decrease from 13.028 cents per kilowatt-hour to 10.184 cents per kilowatt-hour, starting Sept. 1. The higher rate set in June was driven up by power procurement costs and a reconciliation of undercollected supply costs for these customers during the first five months of the year.

PPL Electric Utilities now 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 price to compare for large industrial customers is based on hourly market prices. The company’s rates will change March 1, June 1, Sept. 1 and Dec. 1 each year, similar to other utilities in Pennsylvania.

Shopping growth continues
The number of PPL Electric Utilities customers who have switched to competitive suppliers has increased 16 percent since the beginning of the year (7 percent since June 1) with more than 580,000 now served by third-party suppliers as of Aug. 22.

More than 72 percent of all electricity delivered in the PPL Electric Utilities service area is now provided by alternate suppliers, including almost all power delivered to large commercial and industrial customers. Roughly 40 different suppliers provide power to PPL Electric Utilities customers.

While the utility’s default rate will decrease on Sept. 1, customers may still be able to save on power supply costs by shopping. Offers from competitive suppliers can be compared with the new price to compare. A list of state-licensed suppliers, along with their offer prices, is available from the Pennsylvania Public Utility Commission’s website, www.papowerswitch.com.

PPL Electric Utilities’ primary focus is delivering electricity and customer service, and the utility is not affected if customers switch to alternate suppliers. The generation portion of a customer’s bill is passed through directly to the supplier. PPL Electric Utilities does not receive any profit or markup on the generation cost of a customer’s bill.

“We’re pleased the current market is more favorable for Pennsylvania consumers. We encourage our customers to evaluate their options and choose the electric supply deal that best suits their needs,” said David G. DeCampli, PPL Electric Utilities’ president. “We’ll be here to help our customers understand their choices and how the new market for electricity works.”
PPL Electric Utilities, a subsidiary of PPL Corporation (NYSE: PPL), provides electric delivery services to about 1.4 million customers in Pennsylvania and has consistently ranked among the best companies for customer service in the United States. More information is available at www.pplelectric.com.