Who Does What in the PA Electricity Market

Fifty years ago or so, your electricity came from a local power plant. Not anymore. Pennsylvania is now part of a huge energy market with several other states. Independent generating companies now make and sell electricity on this regional market. Your local utility now longer generates its own electricity. Instead, it operates and maintains its network of poles and wires that delivers electricity to you.

What is the Pennsylvania Public Utilities Commission

The Pennsylvania Public Utilities Commission (PUC) regulates the both sale and distribution of natural gas and electricity in Pennsylvania. It oversees rates and enacts and enforces rules. They are also the authority that consumers can turn to when when they have problems with suppliers or their utility.

What is PJM?

PJM is the transmission and system operator (RTO/ISO) that runs the PA grid. It also supervises the state's wholesale power market. The PJM grid spans all or parts of 12 states, the District of Columbia, and the Commonwealth of Pennsylvania. It stretches from western Illinois to New Jersey and southwards to Virginia.

Not all parts of the PJM grid use the same amount of energy at any given moment. For example, weather is one major factor driving energy demand. It might be cool and pleasant on a summer day in most of PA but at the same time, Chicago may be broiling and crying for power to run air conditioners. As a result, generator companies in PA can sell their electricity to power suppliers and utilities throughout the PJM grid --even to those in Chicago. This also works in reverse and sometimes can include power from other grids --wind energy from the Dakotas or hydropower generated in Canada, all coming to PA.

What Does My Local Electric Utility Do?

Local utilities in Pennsylvania's 11 service areas also have different challenges when it comes to maintaining the poles and wires that deliver energy to their customers. Not all areas in the state have the same number of people or the same level of energy demand. So, energy prices and costs can vary around the state at any one time.

For example, to distribute electricity to customers in Altoona, PA, wires must be strung for miles and go over forested mountains. And the longer the power line, the more power it takes to send electricity through the wire. Meanwhile, in the Philadelphia area, the larger number of people and homes and businesses requires more power lines be maintained to keep everyone supplied. Some lines must be buried in some areas of downtown Philadelphia. Likewise, the higher demand also includes extra switching substations keep the power flowing.

For this reason, Pennsylvania's 11 local utilities impose a distribution/delivery charge on their customers. No matter who suppliers the energy, whether it's local utility or a retail supplier, the charge is the same rate.

And though this charge changes from time to time, the PA Public Utilities Commission oversees the distribution/delivery charge to make sure it is fair for both the utility and the consumer.

How Do I File A Complaint?

If you experience account problems with your electricity service, contact your utility or retail electricity supplier first to give them to an opportunity to resolve the issue before filing a complaint with the PUC.

For some types of informal and formal complaints involving billing, service or termination, consumers are required by law to first contact the utility. The PA PUC offers a complaint checklist [ https://www.puc.pa.gov/general/onlineforms/pdf/Complaint_Checklist.pdf ] to help you navigate the process.

Read about the formal complaint process at the PA PUC website: www.puc.pa.gov.

If you can not resolve a problem with your electricity supplier or utility, contact the The Pennsylvania Office of Consumer Advocate (OCA).

What is the Pennsylvania Office of Consumer Advocate (OCA)

Pennsylvania Office of Consumer Affairs (OCA) represents all Pennsylvania energy consumers when it comes to rate increases, service, mergers, and regulatory changes. The OCA presents cases affecting customers before the PA PUC as well as to federal regulators and the courts.