PPL Default Rates Established for 2010
November 10, 2009
On January 1, 2010 decade long electricity generation rate caps will expire in the PPL territory in Pennsylvania. With this happening Pennsylvania businesses and houses will immediately see their electricity rates increase to PPL default rates. The default rates are established by PPL to service those customers who are slow or unwilling to shop the market for lower rates. Those customers who do shop will be able to realize savings of 10-20% versus the higher default rates.
PPL default rates are determined by a series of auctions that PPL held over the course of 2009. The final auction was held in October. Small and medium businesses will see their rates increase 18-36% when the calendars  turn to 2010. Residential customers will see their rates increase by 29.7%.ÂÂ
Customers in the PPL territory are going to see their rates increase. The amount the rates do increase can be limited if conusmers are willing to shop the market for alternative providers and offers. There are also a number of third party consultants and electricity brokers who can help consumers compare different offers. To avoid the maximum increase, consumers should look into signing a electricity agreement with an alternative provider in early December of 2009 since it can take up to a month for the new rate to go into effect.
David Said,
November 11, 2009 @ 12:10 pm
How does PPL determine whether the increas will be on the lower or higher end of 18-36% increase? Is it by city? I own two small office buildings in Harrisburg, how much should I expect my bill to increase?
David Bejar Said,
November 14, 2009 @ 7:39 pm
David,
PPL held a serious of auctions when they purchased their power for the 2010-2011 load. Based on these auctions, PPL has a set default rate for each specific rate class. Depending on your rate class, the rate will increase your bill by either 18% if you are a small end user or 36% for mid size businesses. You probably fall into the 36% as most office building are in the medium load category. To avoid, getting slapped with PPL’s 2010 default rate, contact me soon.
Thanks,
David
Paul Singley Said,
February 8, 2010 @ 8:18 pm
David, I came across your article researching the PPL rate increase. I was prepared and fully expecting the increase, however my first bill (residential home) reflected a 46% increase in generation charge. What gives? Should I now shop around?
ElectricityWatch Team Said,
February 10, 2010 @ 1:55 pm
Paul,
The rate for the supply portion of your electricity bill for your home should be $0.10448. Despite recent increases in the competitive market due to rising natural gas prices, there are still savings available.
Check out Con Edision Solutions who has been coming in with some of the lowest rates for residences the last couple of months. http://www.conedsolutions.com/saveinppl.html
I hope this helps. Let us know if you have any more questions or comments.
Paul Singley Said,
February 12, 2010 @ 12:04 pm
Thanks for the information David, however I’m still a little confused. To be more specific, my generation charge for all of last year was 4.8 cents/kWh. Now I am being charged 10.448 cents/kWh. Why was my increase more than the 30% as indicated? Was I just lucky to have a lower than average rate previously? Thanks again for your help.
ElectricityWatch Team Said,
February 15, 2010 @ 12:41 pm
I’m not sure why you were only paying 4.8 cents before. However I do know that the 10.448 cent charge is what all residential PPL customers should be paying now. Maybe you did get a little lucky with that mistake 😉