PUC: How to understand your bill after energy prices change on December 1
(WBRE/WYOU) — The Pennsylvania Public Utility Commission (PUC) is reminding consumers that many utilities, including all PUC-regulated electric utilities, are adjusting their prices on December 1.
PUC says they are encouraging customers to understand upcoming changes and explore #SaveInPA opportunities to better manage winter energy bills, by cutting the size of higher seasonal bills and reducing energy usage in homes and businesses.
PUC wants consumers to understand how energy price changes will impact their bill:
During the cold winter months, energy costs, whether electricity or natural gas, can account for more than half of a typical household bill, so the price of that energy is very important.
According to PUC, consumers should understand the two major parts of their monthly electric or natural gas bills:
Generation/supply charge:
This charge covers energy costs (electricity or natural gas) used during the month and is influenced by a consumer, choosing to “shop” for their energy.
The energy cost for this portion of the bill is determined by a consumer’s contract with a competitive supplier or for consumers who don’t shop, the utilities “Price to Compare” (PTC).
Delivery/distribution charge:
This charge includes the cost of the operation and maintenance of the poles, wires, pipelines, and other infrastructures that deliver energy to homes or businesses. This portion of your monthly bill supports your local utility. Consumers may not shop for energy delivery/distribution services.
Utility consumers need to understand that they’re paying for energy supply costs, either through default service from their utility or a contract with a competitive energy supplier.
Electric December 1 PTC Adjustments for Residential Customers
All Pennsylvania-regulated electric utilities are adjusting their PTCs on Friday, December 1 for residential non-shopping customers. The PTC averages around 40 percent to 60 percent of the customer’s total utility bill. However, this percentage varies by utility and by individual consumer usage.
Beginning December 1, electric distribution companies report the following changes in their PTCs for residential customers:
Citizens` Electric, decrease from 13.333 cents to 10.966 cents per kWh (-18%);
Duquesne Light, decrease from 11.45 cents to 10.46 cents per kWh (-8.6%);
Met-Ed, increase from 10.24 cents to 11.306 cents per kWh (10.4%);
PECO will decrease from 9.672 cents to 8.917 cents per kWh (-7.8%);
Penelec, increase from 9.703 cents to 10.607 cents per kWh (9.3%);
Penn Power, increase from 10.556 cents to 11.231 cents per kWh (6.4%);
Pike Co. Light & Power, increase from 7.3005 cents to 8.67 cents per kWh (18.8%);
PPL will decrease from 12.126 cents to 11.028 cents per kWh (-9%);
UGI Electric, decrease from 12.128 cents to 10.26 cents per kWh (-15.4%);
Wellsboro Electric, decrease from 12.393 cents to 9.206 cents per kWh (-25.7%); and
West Penn Power, increase from 9.929 cents to 10.001 cents per kWh (1%).
In purchasing electricity for default service customers, PUC notes that electric utilities are required to meet a “prudent mix” of spot market, short-term, and long-term purchase contracts, and over time, the utilities must provide energy at the least possible cost to their consumers.
However, PUC does not regulate prices for the generation portion of electric bills. Generation prices are separate from the closely-regulated rates that utilities charge for their services the delivery of electricity to homes and businesses.
Tentative settlement for PPL billing issues
Business Customers
For small business customers, PUC notes that most Electric Distribution Companies (EDCs) are adjusting their PTCs on December 1 in their small Commercial and Industrial rate classes.
Among the state`s major EDCs, price changes for small businesses will vary ranging from PTC increases in the FirstEnergy service territories (Met-Ed, Penelec, Penn Power, and West Penn Power) between 1 percent to 10 percent to an anticipated decrease of nearly 9 percent for small business customers in the Duquesne Light service territory.
Natural Gas Purchased Gas Costs and PTC Changes for Residential Customers
Many of Pennsylvania’s natural gas distribution companies (NGDCs) have also adjusted their PTCs this fall for non-shopping customers. Similar to electric, the PTC averages 40 percent to 60 percent of the customer’s total utility bill, with the percentage varying by NGDC and by the level of the consumer’s usage.
The following NGDCs report PTC changes for residential customers:
Columbia Gas of PA, decrease from $0.46849 to $0.2881 per therm (-38.5%);
National Fuel Gas, increase from $0.30959 to $0.3674 per Ccf (18.6%);
PECO will decrease from $0.54211 to $0.3852 per Ccf (-28.9%);
Peoples Natural Gas Co., increase from $1.2337 to $3.08 per Mcf (149%);
Peoples Gas Co. LLC, increase from $1.2337 to $3.08 per Mcf (149%);
UGI Utilities, decrease from $0.7761 to $0.45335 per Ccf (-41.6%); and
Valley Energy will decrease from $0.94342 to $0.33758 per Ccf (-64.2%).
Note: A change in the PTC for Philadelphia Gas Works is anticipated on December 1.
The PUC notes that while seasonal natural gas prices for some utilities have risen in recent weeks, overall purchased gas prices in Pennsylvania are 9 percent to 65 percent lower than they were this time last year; reducing the impact on this year`s winter heating bills.
Regulated natural gas utilities are subject to a least-cost natural gas purchasing requirement. Every natural gas utility company is routinely audited by the PUC to ensure the purchased gas costs they are passing on to their customers reflect the costs that the company paid and that every effort was made to purchase the natural gas for the least possible price.
SaveInPA Energy Shopping Options
In most areas of Pennsylvania, consumers can choose who supplies their electricity based on price or other factors, such as renewable energy, and who supplies their natural gas. But, competitive offers may not be available in all areas.
PUC’s energy shopping websites PAPowerSwitch.com and PAGasSwitch.com, currently reflect #SaveInPA benefits for consumer energy costs, depending on their utility service territory.
Both websites provide residential and small business energy shoppers with valuable information on how to shop for supply services enabling consumers to quickly compare offers from competitive suppliers against the default service rates from their local utilities and to learn more about switching to a competitive supplier, or returning to default service, should they choose.
Standard Offer Program
As another alternative for default service customers not participating in the competitive electricity market, Pennsylvanian’s regulated utilities offer a voluntary Standard Offer Program (SOP) providing those customers with the option of receiving service from a competitive supplier at a fixed price that is 7 percent below the utilities current PTC.
The SOP price is fixed for one year and can be canceled by the customer at any time with no early cancellation or termination fees. Customers should contact their utility by phone or visit their utility`s website for more information on how to enroll in an SOP.
Understanding the impact of winter weather energy usage is a key factor in the size of seasonal energy bills, and there are many ways that consumers can control that usage.
Energy-saving tips include:
Pay attention to the thermostat as every degree you raise or lower the temperature could impact energy costs by up to three percent. Also, consider a programmable thermostat to automatically lower temperatures while away from home.
Have your furnace serviced regularly. Furnace maintenance and clean air filters help ensure heating systems are running efficiently.
Insulate and seal leaks around your home by adding insulation, installing storm windows and doors, and sealing cracks and air leaks can help you stay warmer and use less energy.
Install or repair ceiling fans in high-traffic rooms as many people can reverse the direction of ceiling fans to a clockwise motion which produces an updraft and moves warmer air near the ceiling downward, keeping the room and you warmer.
Consider resetting your water heater thermostat as they are the second highest source of energy usage in a home, and many people have the thermostat on their water heater set too high. Setting the temperature on your water heater a few degrees cooler can help save money on your energy bills.
For struggling households already impacted by higher energy costs as winter sets in, the PUC continues to encourage them to #CallUtilitiesNow noting that direct conversations between customers and utility representatives are the best, first step in addressing outstanding bill balances and discussing utility assistance programs.
For more information visit the Pennsylvania Public Utility Commission website.
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