With summer fast approaching and new electric generation prices taking effect June 1, the Pennsylvania Public Utility Commission is urging residents and businesses to take steps now to manage their utility bills.
Every June 1 and Dec. 1, electric distribution companies in Pennsylvania adjust their “Price to Compare” or PTC — the cost per kilowatt-hour charged to customers who have not selected a competitive supplier. These prices are based on wholesale market rates and can significantly impact monthly bills, according to the PUC.
Nearly all electric distribution companies across the state will raise their electricity generation rates – typically anywhere between 5% and 12%, but some as high as 30% to 40% – based on wholesale market rates.
Locally, UGI’s generation rate for residential customers will increase 7.8% — from 10.637 cents per kilowatt hour to 11.471 cents/kWh, and PPL’s will go up 16% — from 10.771 cents/kWh to 12.490 cents/kWh.
These changes only affect customers receiving “default service” from their electric utility — that is, those who have not selected a competitive supplier. Customers who have a competitive supplier will continue paying the generation price set by their contract, but they should also be aware of these broader market trends to prepare for potential impacts when their current contract ends, the PUC warns.
Consumers can find offers from competitive suppliers at PAPowerSwitch.com along with tools, tips and rate comparisons.
Consumers who sign up with a competitive supplier should actively manage the supplier contract: monitoring the expiration date, watching for renewal notices, tracking market prices, and being ready to act if your plan shifts to a month-to-month rate, which may fluctuate significantly.
Consumers also should be aware that current wholesale market trends have resulted in fewer supplier offers below the utility rate than in prior years, and that offers priced below the utility’s PTC may be a short-term contract — typically lasting three to six months.
If you have questions about your contract, contact your supplier — and if you need help resolving a problem, call the PUC’s Bureau of Consumer Services at 1-800-692-7380.
Shopping for a lower supply rate is just one potential savings tool.
The PUC also encourages consumers to build a “Summer Energy Checklist” and check off ways to reduce usage and control costs.
Simple steps that can have a noticeable impact on energy usage and utility bills include:
- Maintain or upgrade your HVAC system – Clean filters, check ventilation, and schedule a tune-up.
- Seal windows and doors – Prevent cool air from escaping and hot air from entering.
- Set your thermostat wisely – Consider a programmable or smart thermostat.
- Unplug unused electronics and turn off lights when not in use.
- Use fans strategically – Ceiling fans can help you feel cooler without adjusting the thermostat.
- Wash full loads of laundry and dishes and avoid on-peak hours (generally between 6 p.m. and 8 p.m. on hot summer days), if possible.
- Take shorter showers and lower your water heater temperature to 120 degrees.
- Look for ENERGY STAR appliances and efficient lighting options.
- Check your past bills to understand your usage trends.