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Key Takeaways
- PPL’s rate increase in December will raise energy costs for Pennsylvania households and businesses.
- The rate hike applies to PPL customers who haven't chosen an alternative electricity provider.
- To offset costs, consumers can save by shopping for competitive rates and improving energy efficiency at home.
Starting in December, PPL Electric Utilities customers in Pennsylvania will see an increase in their electricity rates, impacting households and businesses alike. This change announced recently, raises the energy cost per kilowatt-hour (kWh) for many consumers, leading to potentially higher monthly electricity bills. As winter approaches and energy demands rise, this rate increase could significantly impact budgets across the state.
How Much Will Rates Increase?
PPL's rate hike will adjust the current price per kWh, increasing by a few cents. The new standard rate for residential customers will rise to 10.771 cents per kilowatt-hour, marking an increase of approximately 7% from the current rate of 10.04 cents per kWh. For small business customers, the new rate will be 10.446 cents per kWh, reflecting a 13% increase from the previous rate of 9.237 cents per kWh.
Though the exact amount may seem small at first glance, even a slight bump per kWh can substantially affect monthly bills, especially for households with high energy consumption or during peak usage times like winter. For example, a residential customer who consumes 1,000 kWh in a month with PPL as their supplier would see an estimated increase of $7.30 in the supply portion of their bill. For a small business using the same amount of electricity, the supply portion would increase by roughly $12.10. Across a year, that's $87 and $145 more in energy costs, respectively.
For a typical household, this change means that your December bill might be noticeably higher than in previous months. For those already feeling the pinch from inflation, these extra charges could add up, underscoring the importance of preparing ahead to manage energy costs.
Who Will the Rate Hike Affect?
The rate hike will affect PPL's standard residential and commercial customers who haven't chosen an alternative energy provider. As a major utility in Pennsylvania, PPL serves millions across the state. (Click here to view PPL's service area.) If you haven't yet shopped for a competitive rate or opted into a different plan, you'll automatically be subject to PPL's updated pricing in December.
While utility companies generally raise rates due to operational costs, maintenance, or increased fuel expenses, it's always important to understand the reasons behind these hikes.
Why the Increase?
PPL Electric Utilities’ upcoming rate increase is part of their semi-annual adjustment known as the Price to Compare (PTC), which affects customers who haven't selected an alternative energy supplier. PPL doesn't generate its own electricity; instead, it purchases power through competitive auctions held twice a year to secure the lowest possible rate for customers who rely on their default supply plan, which is regulated and approved by the Pennsylvania Public Utility Commission (PUC).
As of December 1, 2024, PPL's new default rate will rise to 10.771 cents per kilowatt-hour for residential customers and 10.446 cents per kilowatt-hour for small business customers. This adjustment reflects fluctuations in the energy market and the costs associated with sourcing power, which are passed directly to customers through these competitive auction processes. By using PPL's PTC as a benchmark, customers are encouraged to compare offers from other suppliers to potentially find a rate that better suits their budget.
Tips for Saving Money on Your Energy Bills This Winter
With PPL's rate hike set to take effect, it's a good time to consider ways to save money on your electricity bill. Here are some tips to keep your energy costs manageable even as prices rise:
1. Shop for Competitive Rates
Pennsylvania is a deregulated state, meaning you have the option to choose your electricity provider. By shopping around for competitive rates, you can often find a provider offering a lower rate than PPL's standard service. Websites like ElectricityRates.com make it easy to compare providers and plans, giving you the freedom to find an option that fits your budget. With just a few clicks, you can potentially save a significant amount each month.
2. Upgrade to Energy-Efficient Appliances
If you're using older appliances, now might be the time to consider an upgrade. Many newer appliances come with energy efficiency ratings that can help reduce your electricity use. Appliances like refrigerators, washing machines, and heating systems account for much of a household’s energy consumption, so replacing them with energy-efficient models could reduce your energy footprint and lower your monthly costs.
3. Use a Smart Thermostat
Smart thermostats help you regulate home temperatures more effectively and allow for automated adjustments. Many can even be controlled remotely, so you're only using energy when you need it. By optimizing your home's temperature, especially during the colder months, you can see a noticeable reduction in your energy bill.
4. Weatherproof Your Home
Drafty windows and doors can lead to significant heat loss, meaning your heating system has to work harder to keep your home comfortable. Investing in weatherproofing, such as sealing windows, doors, and other areas where air might escape, can go a long way in keeping warm air inside and reducing the amount of energy you need to heat your home.
5. Shift Energy Use to Off-Peak Times
Some utility providers offer lower rates during off-peak hours. While this may not directly reduce the per-kWh rate, adjusting your schedule to do energy-intensive activities like laundry or cooking during off-peak hours can lead to some savings.
6. Take Advantage of Renewable Energy Options
Some providers offer renewable energy plans, which can sometimes be more affordable or provide price stability over traditional energy sources. By exploring renewable options, you can potentially save on your bill while supporting greener energy sources.
Stay Informed and Be Proactive
Understanding the reasons behind PPL's rate increase and taking proactive steps can make a difference in managing your household expenses. Exploring options, making minor adjustments to your daily routines, and leveraging online tools to find the most affordable electricity plan can help you save money in the long run.
As PPL's rate hike approaches, consider making the most of resources like ElectricityRates.com to stay ahead of rising costs. Pennsylvania's deregulated energy market offers consumers the flexibility to shop for better rates, so take advantage of this opportunity to find a plan that meets your needs without breaking the bank. If you're looking to dive deeper into the particulars of Pennsylvania's energy market, visit our dedicated Pennsylvania page.
