Electricity rates decreasing

There is good news for those electric customers in service territories where rate caps have expired. According to PJM, the regions grid operator, wholesale energy prices continue to fall. In 2009 energy prices fell 45.1 percent in the region due to decreased fuel costs and lower demand.

It is no surprise that the decrease in wholesale energy prices is now being reflected in the generation rates of Pennsylvania utilities. In service territories where generation rate caps have expired, utilities buy power to meet their customers demand from the wholesale market and pass those costs directly onto their customers. Lower wholesale prices lead directly to lower generation rates for consumers.

Two utilities experiencing this effect are Citizens' Electric and Wellsboro Electric. The Pennsylvania Public Utility Commission (PUC) recently approved a 2.1086 cent decrease per kilowatt-hour starting July 1 for residential customers in the Citizens' Electric service territory. This decrease means an average savings of approximately $10 per month or 17.6 percent for a customer using around 500 kilowatt-hours per month.

Similarly, the PUC also approved a generation rate decrease of 1.1144 cents per kilowatt-hour in the Wellsboro Electric service territory, creating a savings of $5.56 per month or 8.37 percent for the average residential customer.

Given the varying times and contract lengths in which utilities purchase power, this impact may not be seen immediately in all service territories. If you are thinking about shopping for a better price on generation please visit our electricity shopping page to find out more information.

Penn Future:Green Power Update