Was your most recent electric bill more expensive than usual? There’s a reason for that, and it’s not just the normal summer months spike caused by increased AC use. The state of Pennsylvania’s Public Utility Commission recently announced that, as of June 1st, utility costs would be rising statewide. Here’s what you need to know about this utilities increase.
Different electric utility companies service different parts of the state and each company is responsible for its own pricing model. This means that the amount by which your utilities increase depends on who your service provider is. The state’s Public Utility Commission provided a wide range, saying that price increases will range from a 6% increase to a 45% increase.
Here’s the full list of Pennsylvania electric companies and their respective price increases as provided by the Commission:
The short answer to this question is that the cost of natural gas has increased. Because natural gas produces approximately half of the state’s electricity, utility companies are raising their rates to match. The reason these prices have soared to a 14-year high is that the available supply of natural gas has decreased; per the principles of supply and demand, rarer commodities require a greater barrier to entry in the form of a higher price tag.
It’s typical for electric companies to adjust their prices on a quarterly or biannual basis, so it’s possible that prices could start to fall in a few months. However, the shortage of natural gas isn’t expected to have been resolved by the next adjustment period. In fact, there is no real projected date by which natural gas reserves will be replenished; this means that the price spikes could linger or even increase.
Pennsylvania residents have a few options to address their increased utility bills.
The Standard Offer is available to Pennsylvania residents who are interested in comparing their current electric provider with a different local electric company. It allows residents to get 7% off the current price for the comparison period, which is one year long. You get access to that 7% discount for 12 billing cycles, but are not locked in and can switch at any time.
You can shop for a different provider on the Public Utilities Commission’s PA Power Switch website, which allows you to compare monthly rates across different electricity companies. You may find that your current electricity rates are your best option or you may elect to switch.
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