Penelec and West Penn Power prices go up between 1% and 9.3% on December 1st

15 November 2023- Many utilities are adjusting their energy supply prices this fall – including all PUC regulated electric utilities on December 1st – and households are reminded to understand those changes, explore options to manage winter energy bills, and to call their utilities options now to discuss affordability programs.

Monthly Utility Bills

It is important for consumers to understand the two major parts of their monthly electric or natural gas bills:

  • Generation/supply charge – This charge covers the cost of the energy (electricity or natural gas) used during the month – and this charge is influenced by whether a customer chooses to “shop” for their energy services. The energy cost for this portion of the bill is determined by a consumer’s contract with a competitive supplier or, for consumers who do not shop, the utility’s “Price to Compare” (PTC).
  • Delivery/distribution charge – This charge includes the cost for the operation and maintenance of the poles, wires, pipelines and other infrastructure that delivers energy to your home or business. This portion of your monthly bill supports your local utility.  Consumers may not shop for energy delivery/distribution services.

During cold weather months, the cost of energy used – either electricity or natural gas – can account for more than half of a typical customer bill, so the price of that energy is very important. 

Electric – December 1 PTC Adjustments for Residential Customers

All Pennsylvania regulated electric utilities are adjusting their PTCs on December 1 for residential non-shopping customers.  The PTC averages 40% to 60% of the customer’s total utility bill. However, this percent varies by utility and by the level of individual customer usage.

Beginning December 1, electric distribution companies report the following changes in their PTCs for residential customers: 

  • Citizens’ Electricestimated decrease from 13.333 cents to 10.964 cents per kWh (-18%);
  • Duquesne Lightestimated 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, estimated decrease from 9.672 cents to 8.919 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, 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, the PUC notes that electric utilities are required to meet a “prudent mix” requirement of spot market, short-term, and long-term purchase contracts.  Plus, over time, the utilities must procure energy at the least possible cost to customers. 

However, the Commission 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 distribution services – the delivery of electricity to homes and businesses.

Shopping for Competitive Electric and Natural Gas Generation Suppliers

In most areas of Pennsylvania, consumers can choose who supplies their electricity based on price or other factors, such as renewable energy as well as who supplies their natural gas.  Competitive offers may not be available in all areas.

The PUC’s PAPowerSwitch and PAGasSwitch energy shopping websites provide consumers and small businesses 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 learn more on switching to a competitive supplier, or returning to default service, should they choose.