ALLENTOWN - PPL Electric Utilities will lower its electric generation rates by about 11 percent beginning March 1, dropping an average monthly bill by almost $10.
That rate drop will benefit about 60 percent of the company's electric customers, including most residential and small-commercial customers.
The other 40 percent, those who shopped around for a cheaper rate from a competitive electric supplier in Pennsylvania's new open electricity market, may not be enjoying the same price break.
PPL's price per kilowatt-hour beginning March 1 will be 6.935 cents, which is almost a full penny below its competitors. The current PPL rate is 7.769 cents per kilowatt hour. Beginning March 1, a home using 1,000 kwh per month will have a bill of $69, down from about $77.
This price applies to residential customers who have not chosen an alternative supplier and receive "default" supply service from PPL Electric Utilities. The Price to Compare includes generation and transmission service, which make up 65 to 70 percent of the typical residential monthly bill. It does not include distribution charges, which apply to all customers and cover the company's costs to deliver power and provide customer service.
For small-business customers, the new Price to Compare will be 6.387 cents per kilowatt-hour, compared with 6.775 cents per kilowatt-hour currently.
A full list of PPL Electric Utilities' new rates for all rate classes can be found at www.pplelectric.com/choice.
PPL Electric Utilities adjusts its generation rates and Price to Compare for shopping purposes every three months to reflect the cost of power purchases and adjustments based on customer use in the prior period. The generation rate for large industrial customers is based on hourly market prices. The company's generation rates change March 1, June 1, Sept. 1 and Dec. 1 each year, similar to other utilities in Pennsylvania.
More than 586,000 PPL Electric Utilities customers, or about 41 percent of customers, are obtaining their power from other suppliers. More than 70 percent of the energy delivered by PPL Electric Utilities comes from alternative suppliers, including almost all power used by large commercial and industrial customers.
PPL Electric Utilities customers can expect the same level of customer service and reliability when they switch to an alternative supplier. The utility does not receive any profit on the generation portion of customers' bills. It merely passes along the cost of that supply to customers without markup. PPL Electric Utilities' primary focus is on electric delivery, billing and customer service.
"Other suppliers in the competitive market offer products and terms that PPL Electric Utilities does not, such as fixed contracts that lock in rates for a full year. We encourage consumers to review and consider all their options," said David G. DeCampli, president of PPL Electric Utilities.
PPL Electric Utilities, a subsidiary of PPL Corp., provides electric delivery services to about 1.4 million customers in Pennsylvania and has consistently ranked among the best companies for customer service in the United States. More information is available at www.pplelectric.com.