How Will First Energy PA’s PTC Increase Affect Me?
Back in July, FirstEnergy Pennsylvania announced new Price To Compare (PTC) rates with the Public Utilities Commission (PUC) for the three-month period starting September 1, 2020. What does this mean for your Pennsylvania energy bill? It depends where you live in the Keystone State. Both Penn Power and West Penn Power will see their PTC rates fall. But if you live in the PennElec and Met-Ed service territories, you could see you PTC rates increase by as much as 7%.
Fortunately, there’s still time to switch Pennsylvania electricity suppliers. But you need to do it now!
How Much Will PTC Rates Cost Me?
The PTC is how much the electric distribution company charges customers per kilowatt-hour (kWh) for providing generation on the default service. It’s also a handy way to compare prices with other suppliers and decide whether you could save money elsewhere. FirstEnergy’s utilities will change their rates on September 1.
- Met-Ed: $0.05757 per kWh; a 7% increase versus the current $0.05361 per kWh
- PenElec: $0.05598 per kWh; up from the current $0.05532 per kWh
- West Penn Power: $0.04891 per kWh; nearly 5% decrease versus the current $0.05125 per kWh
- Penn Power: $0.06447 per kWh; a 3% decrease from the current $0.06684 per kWh
FirstEnergy’s PA utilities change their PTC rates on March 1, June 1, September 1 and December 1. That’s because PA utilities are required to hold auctions to establish the electric rate they charge. That rate is passed on directly to their customers. But, because these rates last only a few months, PA electricity customers can usually lock in a low rate for much longer by signing up with a retail supplier. That way, they avoid those wallet-wrecking rate-change surprises every three months.
Will the PTC Rate Affect Electricity Provider Rates?
Again, the answer largely depends on where you live. The PTC is intended as a way for electricity customers to compare energy prices. In some FirstEnergy utility service areas, the PTC is lower while in other areas the retailer offers are lower. However, the chief value that retailers offer with their PA electricity rates is price certainty. Customers might pay half a penny more per kWh for a 12 month fixed rate plan but they’re not going to see their rate fluctuate every three months.
Is It Worth It To Switch Electricity Providers Now?
Yes! But you need to act soon. Natural gas is the primary fuel used for generating electricity. And while gas prices hit record-setting lows just a month ago, it’s starting to climb back up. As of August 21, the natural gas price has steadily risen nearly $1 per mmBTU since June 26. And with late summer heat increasing air conditioning demand , the price increase is picking up speed.
The U.S. Energy Information Agency predicts that natural gas production will drop by close to 10% from the first quarter of 2020 to the last quarter of 2021. As supply falls, gas prices will increase. And that will drive up electricity rates.
Keep Informed and Shop PA Ratings!
The odds are very good that FirstEnergy utility PTC rates will increase on December 1. And, yes, it’s also likely that retail rates will go up, too. But you can avoid paying more money for your electricity by shopping and switching to a fixed rate plan now by clicking over to https://www.paenergyratings.com/electricity-rates. Not only will you find competitive rates that can save you money but also plans that feature rewards and incentives that give you much more than just a price to compare.