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PPL rates going up Wednesday

Beginning Wednesday, it’s going to cost more to run your dryer or turn on those Christmas lights.

Pennsylvania electric distribution companies report the following changes in their prices to compare for residential customers.

PPL will go up from 7.544 cents to 9.502 cents per kWh, a 26% increase. Met-Ed, which services parts of Monroe County, will increase from 7.114 cents to 7.414 cents per kWh, which is 4.2%.

Small-business customers are facing an increase of 36% in the PPL service territory.

The price to compare 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.

To avoid the possibility of “sticker shock” from high bills during the coming cold months, the Public Utility Commission reminds residential and commercial customers that the start of winter is an important time to compare prices for electric generation, evaluate competitive supplier options and explore ways to conserve and save.

“The upcoming price changes, combined with falling temperatures, make this an important time for consumers and businesses to evaluate their energy options and explore ways to save money and energy in the coming months,” said PUC Chairman Gladys Brown Dutrieuille.

“We encourage consumers to carefully review their electric bills, understand the energy prices they will be paying if they stay with default service, and then explore the PUC’s official electric shopping website - PAPowerSwitch.com - for details on competitive offers, along with tips for energy conservation and savings.”

The PUC notes that the commission does not regulate prices for the generation portion of electric bills. For those customers who do not shop, electric utilities obtain default generation service using a procurement process overseen by the PUC - the electric utility in effect “shops” for the customer.

Generation prices are separate from the closely regulated rates that utilities charge for their distribution services - the delivery of electricity to homes and businesses.

In most areas of Pennsylvania, consumers can choose who supplies their electricity, based on price or other factors, such as renewable energy.

Lehighton and Weatherly residents are serviced by borough power companies.

As another alternative for default service customers not participating in the competitive electricity market, Pennsylvania’s regulated utilities offer a voluntary Standard Offer Program - providing those customers with the option of receiving service from a competitive supplier at a fixed-price that is 7% below the utility’s current PTC.

The Standard Offer price is fixed for one year and can be canceled by the customer at any time with no early cancellation or termination fees.

“We have found that the Standard Offer can be a ‘win-win’ for the electric shopper and supplier alike,” Chairman Brown Dutrieuille said. “The customer benefits with potential savings on electric generation over the course of a year, with no added fees and little or no risk, while the supplier gains a new customer now actively participating in the competitive retail market.”

Review bills

It is important for every utility customer to understand what they are paying for electric generation supply, either through default service from their electric utility or a contract with a competitive energy generation supplier.

Key questions to ask include:

How do competitive suppliers’ rates compare with the utility’s Price to Compare?

Is the supplier contract for a fixed or variable rate - and if the rate is variable, what are the conditions of changes in the price for electricity?

Does the contract provide for additional fees - such as membership or early contract termination fees?

When will the contract expire - and what are the options for consumers as the contract end date approaches?

Consumers are advised not to sign a contract without knowing the length of the contract, the price, whether it is fixed or variable and if there are any fees.