The Pennsylvania Public Utility Commission is alerting consumers about upcoming electric price adjustments effective June 1.
These changes coincide with increasing electricity demand and higher summer energy costs across Pennsylvania.
The June 1 adjustments will impact the “Price to Compare” (PTC) for electric distribution companies, which is the cost per kilowatt-hour charged to customers who have not chosen a competitive electric generation supplier.
These prices are set by wholesale market rates and will affect customers receiving default service from their electric utility. Customers already shopping with a supplier will continue paying their contract rates, but should be aware of broader market trends for future planning.
How much will rates increase in the Pittsburgh region?
Residential customers will see their default service Price to Compare rates adjust starting June 1. Duquesne Light’s estimated Price to Compare will increase from 13.75¢ to 14.14¢, a 2.84% change. West Penn Power’s Price to Compare will change from 10.947¢ to 12.075¢, a 10.3% increase.
Understanding your bill
Electric bills comprise two main components: the generation/supply charge and the delivery/distribution charge. The generation charge covers the cost of electricity itself, determined either by a competitive supplier or the utility’s Price to Compare for default service customers.
The delivery/distribution charge covers the cost of poles, wires and other infrastructure for energy delivery. While the PUC regulates distribution rates and service quality, wholesale electricity prices are driven by regional energy markets and are not directly controlled by the commission.
Generation charges can account for approximately 50% or more of a residential customer’s total electric bill. The overall impact on summer bills can fluctuate significantly based on weather conditions and household electricity use.
Use of energy in the summer
Electric bills can quickly rise during extreme heat because air conditioners and cooling systems operate longer and more often. Even small increases in electric supply prices can have a larger impact during hot months due to increased total household electricity use.
Consumers concerned about summer electric bills are encouraged to contact their utilities to discuss options like budget billing, payment arrangements, Customer Assistance Programs and hardship funds. Utilities collectively dedicate hundreds of millions of dollars annually to these programs.
Ways to save money on your bill
The PUC also encourages several steps to prepare for warmer weather, including reviewing current electric bills and monitoring energy usage. Consumers should contact their utility early if they are concerned about bill payments.
Other recommended actions include reducing unnecessary energy use by adjusting thermostats, replacing HVAC filters, sealing air leaks, using fans and limiting heat-producing appliances during the hottest parts of the day. Consumers can also explore conservation resources and educational tools through PAPowerSwitch.com.
Shopping for a different supplier
Shopping for a lower electric generation supplier rate is a potential savings tool, but consumers should be aware that current wholesale market trends have resulted in fewer offers below the utility rate. Such offers may also be short-term contracts, typically lasting three to six months.
When shopping, consumers should compare carefully at PAPowerSwitch.com, check if a rate is fixed or variable and look for early termination fees or monthly charges. It is important to review contract terms, pricing structures and renewal conditions before enrolling and to be aware of contract expiration dates.
Contacting PUC for questions
Consumers who cannot resolve billing or service issues directly with their utility or electric generation supplier may contact the PUC’s Bureau of Consumer Services for assistance. The bureau can be reached at one-800-692-7380 for help, consumer education and additional information about available utility programs.
Download the FREE WPXI News app for breaking news alerts.
Follow Channel 11 News on Facebook and Twitter. | Watch WPXI NOW