Electric rates on the rise again

The PUC encourages consumers to prepare now by reviewing their energy usage, exploring conservation opportunities, and to #CallUtilitiesNow to discuss tools like budget billing, payment arrangements, and other available assistance programs if they are concerned about summer bills.

Understanding your bill

Electric bills have two primary components:

• Generation/supply charge – This is the cost of the electricity itself. This is set either by your competitive supplier (if you shop), or your utility’s “Price to Compare” (PTC), if you do not shop.
  
  
• Delivery/distribution charge – This charge includes the cost for the poles, wires, and other infrastructure and operational services to deliver energy to your home or business.

The PUC regulates distribution rates and utility service quality, but wholesale electricity prices are driven by regional energy markets and are not directly controlled by the Commission.For many residential customers, generation charges may account for roughly 50% or more of a total electric bill, though the total impact of summer bills can vary significantly depending on weather conditions and household electricity usage.

Why summer bills can increase quickly

During periods of extreme heat, electric bills can rise quickly because air conditioners and cooling systems run longer and more frequently. Even modest increases in electric supply prices may have a larger impact during especially hot months because total household electricity use also increases.

The PUC encourages consumers to pay close attention to both electricity prices and overall energy usage during the summer season.

Adjustments for residential customers

Beginning June 1, Pennsylvania electric distribution companies (EDCs) will adjust their default service “Price to Compare” (PTC) rates for residential customers. While these changes affect the generation portion of electric bills, total monthly costs will also depend heavily on summer temperatures and individual energy usage.

Price Changes (Effective June 1)

Adjustments for small business customers

For small business customers, the PUC notes that most EDCs are also adjusting their PTCs on June 1. Among the state’s EDCs, price changes in default service rates for small businesses will vary:

• PECO estimates a PTC increase of more than 14%.
• Both UGI Electric (more than 12%) and Penelec (more than 6%) will also see PTC increases for small business customers.
• Meanwhile, PTC adjustments in the Met-Ed, Penn Power and West Penn Power service territories, as well as in Duquesne Light and PPL, will remain steady or drop slightly.

Consumers concerned about summer electric bills are encouraged to contact their utilities now — before account balances may become difficult to manage. Early communication with utilities often provides customers with more options, including payment arrangements, Customer Assistance Programs (CAPs), budget billing plans, hardship funds, and other support services.

Pennsylvania utilities collectively dedicate hundreds of millions of dollars annually to universal service and affordability programs designed to help eligible households remain connected during periods of financial hardship.

Simple steps to save and stay connected

To help consumers prepare for warmer weather, the PUC encourages everyone to take these simple steps:

1. Review your current electric bill and monitor your energy usage as temperatures rise.
   
   
2. Contact your utility early if you are concerned about paying your bill or falling behind on payments.
   
   
3. Ask about CAPs, budget billing, hardship funds, and payment arrangements.
   
   
4. Reduce 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.
   
   
5. Explore conservation resources and educational tools through PAPowerSwitch.com

Energy shopping: know before you shop

Shopping for a lower EGS rate is one potential savings tool. Consumers 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.

When shopping, all consumers should stay informed:

• Compare carefully at PAPowerSwitch.com.
  
  
• Know whether a rate is fixed or variable, and check for early termination fees or monthly charges. The website has filtering features to help you shop and avoid energy products that you do not want.
  
  
• Before enrolling, carefully review contract terms, pricing structures, and renewal conditions.
  
  
• Be aware of your contract expiration date and watch for renewal notices from your current supplier.
  
  
• If you have questions about your contract, contact your EGS.

Staying cool, safe, and connected

Consumers who cannot resolve billing or service issues directly with their utility or EGS may contact the PUC’s Bureau of Consumer Services at 1-800-692-7380 for assistance, consumer education, and additional information about available utility programs.