How Far Is FirstEnergy PA Cutting PTC Rates?
Even though the cheapest electric rates seem to keep going up and up, FirstEnergy is reducing its PTC rates. The utility conglomerate filed for a rate increase for the six-month period starting June 1, 2024. However, it reversed course and is now cutting PTC rates. It seems like an odd turn of events, and it is!
Twists and Turns to Cutting PTC Rates
So, what exactly caused this about-face? FirstEnergy proposed a rate increase for all four of its utilities to cover maintenance and grid upgrades. Then, a couple of state watchdog agencies filed formal complaints with the state Public Utility Commission.
In response, the PAPUC investigated the complaints to decide “lawfulness, justness, and reasonableness” of the FirstEnergy proposal. In the meantime, the rate hike is suspended until January 1, 2025.
Following this suspension, FirstEnergy filed a new rate proposal with the grid improvements and maintenance stripped away. By law, utilities cannot profit from the PTC rate. With the cost drivers removed, the proposed rate dips below what consumers currently pay.
How Far Will Rates Drop?
It’s great for customers that rates are falling, but will it make a difference in your monthly budget? You might treat yourself to a few fancy coffees each month.
Of the four FirstEnergy Pennsylvania utilities, three will have an 8% decrease (Med Ed, PenElec, and Penn Power). So, a customer using 1,000 kWh per month will have bills about $9 less each month. West Penn Power will lower its rate by 12% which translates to about $12 per month on 1,000 kWh. So, yeah, grab that venti mocha if you want.
These decreases last through November 30, 2024. Before that deadline, the auction process for the subsequent six-month period will run its course. And you shouldn’t bet on prices staying low on the heels of a summer with deferred grid maintenance.
Beat The PTC Rate
You may not want to get used to that little extra treat. Cutting PTC rates comes at the expense of deferred maintenance. The work will need doing, and the costs will need paying. And the consumer always pays for it somehow. So, shop for cheap electricity that beats the PTC rate.