Commercial and industrial electric customers at PECO and PPL Electric Utilities are facing large hikes of up to 33% in their electric rates in the next month if they remain with the utility for their power supply. Customers can avoid these rate hikes, and find a lower electric rate, by shopping for an electric supplier.
PECO and PPL are the two largest utilities in Pennsylvania energy, covering most of the eastern half of the state, including Philadelphia, Allentown, Scranton, Bethlehem, Wilkes-Barre, and Harrisburg.
SaveOnEnergy.com had previously alerted small and mid-sized commercial electric customers at PPL that a rate hike was looming on June 1, but the actual increase is even higher than PPL's original estimate. Starting June 1, PPL's Price to Compare for most small and mid-sized businesses (rate classes GS-1 and GS-3 small) will jump to 13.028 cents per kWh, from the current 9.766 cents per kWh. This 33% increase is about double what had originally been projected.
Much of the rate hike, however, doesn't reflect the current cost of electricity, but rather the under-recovery of previous power costs that PPL now has to make up. That means actual market prices for electricity are relatively stable, and customers can shop for a competing electric supplier to find a rate reflective of these lower market costs, and well below PPL's Price to Compare.
At PECO, the electric rate hikes won't be as high, but will still be significant, and range from 10-13%.
For Rate GS (General Service) customers at or under 100 kW, PECO's Price to Compare effective July 1 will increase to 10.32 cents per kWh, from the current 9.43 cents.
For Rate GS (General Service) customers with demands from 100 kW to 500 kW, PECO's Price to Compare effective July 1 will increase to 10.47 cents per kWh, from the current 9.30 cents.