Small and medium business customers at PPL Electric Utilities in Pennsylvania are projected to pay more for electricity starting March 1 if they continue to purchase their electricity supply from PPL instead of shopping for a competitive electric supplier.
Customers at PPL now have a choice in their electricity supplier. PPL serves customers in Harrisburg, Allentown, Scranton, Wilkes-Barre, Lancaster, and surrounding areas.
PPL no longer owns power plants, and competing electric suppliers can now offer you lower rates for your power supply.
However, if you don't choose an alternative electric supplier, PPL will still provide you with electricity supply under a program known as "default service." PPL buys electricity for default service on the open market, and simply passes-through the costs.
Rates for PPL Electric default service change every three months, and will next change on March 1. Although the final March 1 default service rate -- or "Price to Compare" -- is not yet known, PPL is forecasting an increase in the Price to Compare on March 1 for small and medium commercial and industrial customers.
Specifically, the PPL Price to Compare for GS-1 customers and GS-3 customers is projected to increase about 5% to 9.625 cents per kilowatt-hour (kWh), from the current 9.250 cents. While this may seem like a small amount, consider that for even a small business using 5,000 kWh per month, this electric rate increase will translate into nearly $20 per month, or $225 annually.
More importantly, the PPL Price to Compare is currently, and will continue to be on March 1, well above the lower electric rates offered by some competitive electric suppliers.