PPL Electric Utilities said today it is securing power for 2011 at prices lower than its current cost to supply power to “default” customers – those who do not shop for generation service from competitive suppliers.
With the continuing trend of lower market prices for power, the utility said it would likely be passing along a lower rate for its generation service to residential and small business customers who receive power supply from the utility, effective Jan. 1, 2011. However, the actual rate will not be known until December after additional purchases are made later this year.
The state Public Utility Commission this week formally approved the results of the company’s latest round of power purchases, which was the fifth wholesale power purchase over the past year. As an energy delivery company, PPL Electric Utilities buys power on the wholesale market to deliver to its customers who do not select a competitive electric supplier. The company now has secured approximately 80 percent of its power supply from a total of 16 companies for the first five months of 2011.
“We understand consumers are interested in what generation service prices might be next year. Based on the fact that the price of 2011 power purchases made to date is below what we are currently paying, we believe our generation service charge may be 9-12 percent lower than the current rate, which is 10.133 cents per kwh for residential customers and 10.125 cents per kwh for small commercial and industrial customers,” said David G. DeCampli, president of PPL Electric Utilities. “There’s strong competition among companies interested in supplying us the power to serve customers who do not seek out competitive supply options. At the same time, the retail market is robust with a number of generation suppliers making offers to PPL Electric Utilities customers, too.”
Customers may be able to save more by shopping among competitive suppliers for service for next year. Visit www.papowerswitch.com for more information about electric choice or comparison offers for residential customers from licensed suppliers in Pennsylvania. “With rates expected to change, we encourage our customers to explore their options and be sure to understand the terms of offers they receive from competitive suppliers,” said DeCampli.
