Those receiving their December PPL Electric Utilities bills might be getting an unexpected shock.

The utility company’s residential supply charges, or price to compare, has jumped from 12.366 cents per kilowatt hour to 14.612 cents per kilowatt hour.

While that doesn’t sound like much, the PTC, or the default rate paid by those who don’t shop around for less expensive electricity, is about 94% more than it was at the end of November 2021.

The new default rate began on Dec. 1, at a time when people had already been hit by rising prices of home heating fuel, food, gasoline and more.

“This increase is due to ongoing market conditions that are impacting most sectors of the economy,” said Jane George, a PPL spokeswoman. “These include the rising cost of energy supply sources, supply chain issues, overall inflation and other global economic events.”

Furthermore, winter’s temperatures play a role in inflating prices.

“Recent price spikes and ongoing fluctuations in wholesale energy prices, coupled with increased cold weather energy usage, have driven up monthly utility bills for many Pennsylvanians,” explained Gladys Brown Dutrieuille, chairwoman of the Pennsylvania Public Utility Commission.

PPL, is the default service provider for a large portion of the state, including municipalities in Carbon, Schuylkill, Monroe and Lehigh counties. But it isn’t the only electric distribution company to have raised its rates.

In fact, all 11 regulated electric utilities in the commonwealth adjusted their PTCs on Dec. 1 for residential non-shopping customers.

While PPL increased 18% since the last adjustment on June 1, customers of Penn Power, which serves several western Pennsylvania counties, saw the lowest increase with 2%, while those in central Pennsylvania served by Wellsboro Electric saw the highest jump at 34%.

Penelec’s 600,000 customers in northwestern Pennsylvania actually saw a 1% decrease in their rates and customers of UGI Electric, which serves a portion of Luzerne and surrounding counties, saw no change.

The PTC typically averages 40% to 60% of a customer’s bill.

George said that PPL’s role is to safely and reliably deliver electricity to customers.

“But we don’t own the power plants where electricity is generated,” she explained.

George said that Pennsylvania residents have the option of shopping around for electric suppliers. But if they don’t, they receive the default supply - or PTC - through PPL as per state law.

The PUC requires electric utilities to update their PTCs twice a year - on June 1 and Dec. 1 - based upon competitive energy auctions.

It also requires electric utilities to procure energy at the least possible cost. It does not, however, regulate the generation portion of electric bills.

While Nils Hagen-Frederiksen, a PUC spokesman, said household energy usage and the weather can have a substantial impact on the size of monthly bills, there are steps that consumers can manage or moderate those bills.

PowerSwitch

For one, the PUC’s PAPowerSwitch program allows consumers to compare offers from competitive suppliers against the PTC from their local utility.

Customers enter their ZIP codes, and can choose fixed or variable rates to find a list of other suppliers, along with their prices and terms. They can switch to a competitive supplier or return to their default service.

A recent search returned dozens of results, many of which had rates that hovered around 10 cents per kilowatt hour. Shoppers are advised to do their homework.

“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,” the PUC warns.

The PAPowerSwitch program began in 1997 when Pennsylvania established the Electricity Generation Choice and Competitive Act.

According to the PUC’s PAPowerSwitch data from December 2022, there are approximately 5.22 million residential customers of the state’s 11 regulated electric utilities. Of that, approximately 1.2 million, or 23%, have switched electric generation suppliers. The most recent PUC data also notes that 36% of PPL customers have opted for a different supplier.

Those who do not plan to leave their default supplier might have other options. For example, PPL has assistance programs and payment plans for income-eligible individuals.

“We offer numerous programs and tools - including budget billing and payment plans - to help customers who are having trouble keeping up with their electric bills,” George said.

She said that PPL offers free virtual home energy assessments in which customers can receive advice and tips from energy advisers, and home energy audits that can save customers money on their bills.

Customers may also qualify for rebates on heating equipment and other energy-efficient upgrades they have made, George said.

Trouble making ends meet?

The Low Income Home Energy Assistance Program is administered by Pennsylvania Department of Human Services and can provide payment directly to the utility company to help with heating bills or to help maintain or restore service. More information is available at 1-866-857-7095.

Other public assistance programs may be found online at www.compass.state.pa.us or by calling 1-866-550-4355.