Penelec Residential Customers Face 20% Rate Hike

Summer electricity rates have increase by 20 percent for residential customers who receive their power bill from the Penelec electric utility company. Penelec announced in late May that their default generation and transmission charges would increase on June 1, 2014, giving consumers little time to shop for competitive power prices.

Penelec imposes a default rate, which is called the price to compare by the Pennsylvania Public Utility Commission, to all of their customers who have not chosen a competitive electric supplier to provide power supply. The default rate includes generation and transmission charges. Distribution charges continue to be charged by Penelec and are regulated by the Pennsylvania PUC. Prior to June first, the Penelec price to compare for residential customers was $0.07709 per KWh and included both generation and transmission service. On June 1, 2014 that rate increase by 20% and is now $0.09254.

Penelec residential customers who are on fixed rate contracts with competitive suppliers do not have to worry about the rate increase. Those customers will continue to pay the rates outlined in their agreements with the competitive energy companies that they have chosen. Default paying customers can save money and avoid the rate increase by shopping for low Penelec electricity rate plans offered by power companies who are licensed by the Pennsylvania PUC. Below are several offers from licensed competitive electricity supplies.