As utility companies begin adjusting their prices, Pennsylvania residents should prepare for "sharp increases" in their electric bills.
The Pennsylvania Public Utility Commission (PUC) just sent a warning to residents across the state that the cost of electric utilities could be going up as much as forty-five percent starting next month in June.
Most electric utility companies across the state will be adjusting their prices for "non-shopping" customers on June 1, 2022. You are considered a "non-shopping" customer if you plan to stay with your current electric utility provider.
The PUC recently reported that following the rate change in early June, many Pennsylvania residential customers could see their monthly bills increase anywhere from six to forty-five percent.
While it is considered "normal" for public utility companies to adjust their prices nominally on a quarterly or biannual basis, residents should prepare for more extreme rate hikes this summer.
Electric prices typically surge during the summer months because more people are running air conditioners which requires energy companies to produce more electricity, increasing their costs. Those costs are then passed on to residential and commercial customers.
However, this time around, utility companies have more hurdles to jump over regarding the cost of producing electricity. Due to current world events, the cost of the raw materials required to make electricity has recently gone up in price. The end-user will absorb that increase in cost.
According to recent reports, Penn Power customers are expected to see a 22.7% increase in the cost per kilowatt-hour. West Penn Power customers will see a 23.7% increase, and PPL Electric customers' bills will go up 35.3%
Other electric utility companies throughout the state, such as Duquense Light, have not yet made their increases available to the public.
Will you be shopping around for a lower electric rate this year?
How will a rate increase affect your household?
Let us know in the comments.