Consumers who use Duquesne Light Co. or West Penn Power to purchase the power for their homes and businesses will see prices spike beginning Thursday, the state utility commission said.
The state Public Utility Commission allows the utilities to adjust the price of purchasing the power — a “pass-through cost” — on June 1 and Dec. 1, but consumers can switch their power producer any time, said Nils Hagen-Frederiksen, a PUC spokesman.
“This is their (consumers’) signal to see if they can get a better deal,” said Todd Meyers, a spokesman for Greensburg-based West Penn Power Co.
The PUC publicizes a “price (per kilowatt hour) to compare” for the utilities that allows consumers to make an informed decision. The Pennsylvania Office of Consumer Advocate maintains an electricity shopping guide at oca.pa.gov/electric-shopping-guide, and the PUC at PAPowerSwitch.com.
For West Penn Power customers who rely on the utility to source their electricity, which buys it through a PUC-regulated auction process, that part of their bill will increase from 8.22 cents per kWh, to 9.92 cents, a 20.7% jump, according to the PUC. The typical West Penn Power residential customer using 750 kWh per month will see about a 13.1% increase in their monthly electrical bills, from $97.40 to $110, Meyers said.
Duquesne Light will raise the price for those who default to using the utility to purchase power by 1.8% — from 11.25 cents per kWh to 11.45 cents, the utility said. The average Duquesne Light residential customer using 600 kWh will see an increase of about $1.15 month, or 1%. Duquesne Light said it uses a competitive procurement process for the energy.
Electric charges make up about 40% to 60% of an average bill, Meyers said.
The generation rates the utilities charge vary based on market conditions, as well as the price of power that a utility has purchased through its short-term, mid-term and long-term contracts, Hagen-Frederiksen said. Of 10 electric companies in the state that have adjusted their rates starting June 1, three are decreasing the default generation price per kWh, the PUC said.
The PUC said 15.7% of West Penn Power’s customers in Pennsylvania were served by an alternate supplier as of April 1, compared with 20.7% for Duquesne Light.
Customers should evaluate all available options when it comes to choosing their energy supplier to “help them find the best rate in addition to receiving the type of service that most suits them,” Duquesne Light said.
If consumers are going to shop for a better deal from a power generating company, the Pennsylvania Office of Consumer Advocate encourages them to “shop smart,” said Patrick Cicero, the state’s consumer advocate.
“While the competitive market may provide some savings for consumers, folks need to be careful to make sure that they know the product terms, fees and variability of their energy contract,” Cicero said.
“Looking at the price per kWh is not the only factor,” Cicero said because some suppliers charge extra monthly fees, or have early cancellation fees.
Customers should look at the terms of the agreement to see whether the rates are variable — thus changing with market prices — or fixed, and whether there is any penalty for switching providers, Meyers said.
“Just be certain to understand the terms and conditions of all offers, and read the fine print,” Meyers said.
