First Energy and Pennsylvania Energy

First Energy Seeks to Merge Four PA Utility Companies

First Energy has filed with the PA PUC to consolidate all of their subsidiary utilities together. This would make one single First Energy PA utility. However, there could be several upsides to the merger, like lower operating costs and better customer service. And, First Energy says that rates won't change right away. This sounds like good news for PA utility customers. But that's in the short term. What happens after that? And how will this affect your electricity rates?

What’s the Plan for First Energy?

First Energy wants to merge their PA utility companies into a single utility called First Energy Pennsylvania Electricity Company. This means all the service areas of Met-Ed, Penelec, Penn Power, and West Penn Power would become one utility. First Energy believes the changes would let them operate more effectively. And that they would lead to better service and lower operating costs. And with lower costs come lower rates for customers.

How One PA Utility Could Change Your Rates

But what does this mean for your rates? The proposal shows nothing would change. The company intends to convert their utility service areas into "rate districts". So, it sounds like business as usual at first.

Currently, each First Energy utility must file its own Price to Compare (PTC) rate with the state. However, one of the stated goals from First Energy is to “Lay the foundation for an eventual unification of rates and charges for electric service in later base rate case(s)". First Energy eventually wants to file one PTC rate for all of their customers. If the PUC approves the merger and rate change, it's hard to say how the PTC rates may change.

Unfortunately, First Energy has overcharged Pennsylvanians for dubious business dealings in Ohio. So some regulators may be reluctant to embrace a single PTC rate for the whole state as a good thing.

CAUSE-PA Filing to Intervene with First Energy

CAUSE-PA, an association that advocates for affordable utility services, is concerned with this merger. The group has filed a motion to intervene with the PA PUC. They worry how the merger will change the quality of utility services and how it would affect low income assistance programs. In addition, they expressed doubt whether the merger would actually benefit customers. 

On top of this, the Office of Small Business Advocate filed a protest against First Energy. They're demanding proof that First Energy's statements in their filing are accurate.

Wile more protest and petitions are sure to come, the PUC has to actually approve First Energy's filing. So it may be some time before any answers emerge.

Don't Let Low Rates Slip By

Remember that these potential changes may only affect PTC customers. But if you shop PA electricity retail providers, you won't need to worry at all. And since spring has the lowest rates, now is the best time to shop for the cheapest electricity plan! But don't wait too long because summer heat is coming!

Compare providers, find a low rate, and keep up with energy news all in one place! Save when your shop the best plans at https://www.paenergyratings.com.

Is it time to shop for a new electricity rate?

Electricity rates are falling all across Pennsylvania! Several utilities are filing to lower their PTC rates this spring, and Pennsylvania electricity providers are not far behind. But is now a good time to shop for a new electricity rate? Or should you wait until spring to snag a better deal?

Lower Rates Coming Soon

Across the First Energy service area, rates are falling. First Energy just filed corrections to their upcoming PTC rates in March.

• Met-Ed is lowering their rate from 10.3 cents per kWh to 9.9 cents per kWh, a 1.4 cent decrease.
• Penelec is lowering their rate from 9.8 cents per kWh to 9.5 cents per kWh, a .3 cent decrease.
• Penn Power is lowering their rate from 10.5 cents per kWh to 10.4 cents per kWh, a .1 cent decrease.
• West Penn is lowering their rate from 8.5 cents per kWh to 8.2 cents per kWh, a .3 cent decrease.

PECO is also lowering their generation rates! The generation supply adjustment rate, or GSA, represents the majority of cost for PTC rates, but doesn't include the supply charge. So it’s not a final number. The current PTC rate is 9.85 cents per kWh, and the new GSA charge is 8.9 cents per kWh, a .9 decrease from the current rate.

While these are huge price discounts, they suggest a trend for electricity rates in PA cities.

Should I Shop Falling Electricity Rates Now?

Thankfully you don’t have to wait until March to snag a lower rate. While we recommend shopping in the spring for the best rates, there are several tempting options on the market lower than current PTC rates.

Right now if you want the best rate in Reading, Erie, or Philly then APG&E is the company to beat. The APG&E TrueSimple 6 Plan has the lowest rate available in all three areas, beating out current PTC rates for Med-Ed, Penelec, or PECO.

In Reading and Erie, the APG&E rate is just 8.7 cents per kWh. That's 1.6 cents lower than the Med-Ed PTC rate and 1.1 cents lower than Penelec. In September that same plan was 19.53 cents per kWh! And in Philly, the APG&E rate is 8 cents per kWh, a full 1.85 cents lower than the current PECO PTC rate. This past September the same plan would have cost you 18.14 cents per kWh.

With a 6 month fixed rate and a $1.99 monthly charge this plan is hard to beat. Just keep in mind their $100 cancellation fee if you want to shop for an even lower rate in spring! And always be mindful of when your contract expires. You don’t want to forget to shop and get stuck with a nasty billing surprise.

Keep an Eye on Falling Electricity Rates this Spring

It may be tempting to snag the first plan you see that’s lower than the current PTC rates, but there’s no need to rush! You can check reviews, look at different rates, and find the best plan for you all in one place. Shop smart with https://www.paenergyratings.com