PITTSBURGH (TNS) — Electric utility rates will be reset across Pennsylvania on Dec. 1, as companies update the cost of the electricity they buy on behalf of customers who choose not to shop for it themselves.
That probably means you.
Among residential customers, 77% fall into that category, according to the latest data reported to the Public Utility Commission.
As the PUC reminded customers last week, there are three components to your energy bills: “the cost of energy, the amount of energy you use, and ‘Mother Nature.’”
”It’s the combination of all three that drives the size of monthly utility bills,” the agency said.
Just as a restaurant bill accounts for the cost of the groceries and also the labor and overhead of getting the meal on the plate, utility bills incorporate the cost of the fuel that keeps the lights on or the furnace huffing and all the other expenses involved in maintaining the poles and wire, or pipelines to get that fuel to your home. The fuel cost is the most volatile.
But the real wild card is the weather.
Mother Nature is expected to show up this year in what The Old Farmer’s Almanac cheerfully predicted will be a season with “oodles of fluffy white” and “all of winter’s delights!” The National Oceanic and Atmospheric Administration’s more subdued forecast said it would likely be a typical winter.
”While consumers cannot control the weather, they can reduce energy use and shop for an energy supplier to lower their utility bills,” the PUC said.
But a shrinking number of Pennsylvania residential consumers are shopping for a supplier other than their utility.
Last year, 23% were getting their electricity from a different company, a 10-year low. In 2013, the number was 37%. It has been declining ever since.
NEW RATESElectricity prices rose significantly last fall as the price of natural gas, the dominant fuel for power plants on the eastern electric grid, spiked as well.
In southwest Pennsylvania, Duquesne Light’s electricity charge jumped 45% last fall. It increased again this fall. Come next month, Duquesne Light customers can expect an 8.6% decrease in the utility’s “price-to-compare,” the rate charged for the electricity portion of the bill. But it will still be more than what ratepayers paid at this time last year.
At the new rate, the generation portion of an average Duquesne Light customer’s bill will decrease from $69.73 to $63.70. Fixed and use-based distribution and other fees will make up the rest of the bill, ranging between 40% and 60% of the total.
West Penn Power’s price-to-compare will rise by 1% starting next month compared to the prior quarter.
Even though its supply rate is slightly lower than Duquesne Light’s, the average West Penn customer uses more than 30% more electricity per month, according to PUC data. That would bring the generation portion of their bill to $95.20 next month.
The drop in the price of natural gas over the past year isn’t yet reflected in the price of electricity for consumers.
But gas utility customers are likely to see lower bills this winter compared to last.
Last fall, residential consumers of Columbia Gas of Pennsylvania were paying more than 250% more for the gas supply than they are today. Its current price, which reset on October 1, means the average customer is paying just $21 for the gas portion of their bill.
At Peoples Natural Gas, that number would be $22.48 with average monthly use, which smooths out the high and low use periods of a year.
But the winter months are a high-use time for natural gas consumers, so the generation portion will be higher as well.
Utilities and the PUC have been reminding those who are struggling to pay their bills that there is help available, from bill discount programs and payment arrangements from the utilities to one-time hardship grants through the Dollar Energy Fund.
Dec. 1 also marks the start of Pennsylvania’s winter moratorium on shutoffs.
Gas, electric and water utilities are not allowed to disconnect low-income customers for nonpayment between Dec. 1 through March 31. This includes households with an annual income below 250% of federal poverty guidelines, e.g. $45,552 for a one-person household or $93,750 for a family of four.
