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Latest Comparison Of Capped vs. Market Electric Prices Available, New Email Alert
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As it released updated estimates comparing current market prices with capped electric generation prices this week, the Public Utility Commission announced the availability of weekly e-mail alerts to provide consumers with electric pricing information and competitive offers available in their area.
According to the estimates, the market has been relatively stable since the previous estimates were released in April 2010. The Commission emphasizes that wholesale prices are subject to constant change and can be volatile. The prices may stabilize or trend upward or downward in the future.
With that in mind, consumers can sign up for weekly email alerts at the PA Power Switch website.
In Pennsylvania, consumers can choose the company that generates your electricity - also known as the electric supplier. This means consumers have the power to switch to a competing supplier who can offer the lowest price, or provide a specific service such as green/renewable energy.
On January 1, 2011, all electric rate caps will expire and the utility price to compare may change quarterly. The PTC is the price per kilowatt hour (kWh) your electric utility will charge.
PA Power Switch provides consumers with the PTC for both the utility and the competitive suppliers making offers in the area, allowing consumers to make an apples-to-apples comparison for the generation portion of the bill.
The email alerts will keep consumers in touch with the prices, enabling them to make decisions for their home or business based on the most current pricing information available. Areas where rate caps have not yet expired may not see any competitive offers at this time.
Customers of Allegheny Power Co., Pennsylvania Electric Co., Metropolitan Edison Co. and PECO Energy Co. and can prepare for the January expiration of rate caps by signing up now to receive alerts when choices become available.
The charts released today show quarterly differences between capped rates and estimated market prices beginning in the second quarter of 2008 through June 30, 2010. Information for Allegheny Power, Penelec, Met-Ed and PECO is included because their rate caps expire December 31, 2010.
Information for the state's other electric utilities is not included because their rate caps have expired.
The Commission will post quarterly updates on the PUC website with the next update planned for October 2010.
Wayne Williams, Ph.D., Director of the PUC Bureau of Conservation, Economics & Energy Planning, said the calculations released today estimate the increases consumers would see, on average, if rate caps expired today and the state's electric distribution companies still under caps immediately began charging prices based on current short-term market conditions.
The market price of electricity is very volatile and changes on a daily basis, and is subject to changes that result from factors over which the PUC does not have jurisdiction. Director Williams noted that these estimates identify current market prices in the short term, in comparison with capped rates, and do not in any way represent a Commission projection of future prices when the remaining rate caps expire.
Actual post-rate cap prices for each utility will reflect a portfolio of resources, obtained over time, which will mitigate the effect of monthly and daily changes in the market rates for energy.
For Allegheny, Penelec, Met-Ed, and PECO, where a majority of the load for certain customer classes has been purchased, more accurate post-rate cap price auction results also are provided. These prices reflect a portfolio of resources, obtained over time, which mitigated the effect of monthly and daily changes in the market rates for energy.
This illustrates that if current market trends continue, consumers may be able to achieve better prices through a competitive electric generation supplier when rate caps expire.
The Commission has engaged consumer advocates and industry experts in efforts to mitigate any price increases in future electric generation prices. The Commission has been working to educate consumers; develop strategies to remove barriers for suppliers providing competitive electric service; approve phase-in or pre-payment plans and direct all utilities to file such programs if electric rates increase by more than 25 percent; update low-income programs that provide budget assistance; and implement default service pricing that reflects the least cost to consumers over the long term.
The PUC also is continuing to explore reasonable, cost-effective programs that consumers and companies can implement to conserve energy or use it more efficiently.
The Commission will continue its actions to mitigate potential rate increases. For customers, energy conservation and efficiency are recommended long-term strategies that should provide benefits regardless of where market prices trend in the future.
For more information on what consumers can do to reduce their usage and prepare for electric rate cap expiration, visit PA Power Switch website.
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8/2/2010 |
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