By Mike Lynn
In a letter to their customers, Pennsylvania Power & Light (PPL) announced substantial rate hikes for residential electric service yesterday. The change has many Pocono residents concerned as record gas prices and inflation has already had a devastating effect on many households.
According to PPL's website, PPL's current rate is 8.941¢/kWh. On Jun. 1, 2022, that price will be 12.366¢/kWh, equating to a 38.3067% increase. The June increase follows a 26% increase that took effect on Dec. 1, 2021. Why is the default rate increasing? PPL updates the default rate twice a year based on competitive energy auctions. After completing their auctions, PPL states that they purchase power for consumers at the lowest rate available.
Miguel Velez, a Stroudsburg resident, negatively affected by the rate increase, says, "They're the only supplier around here. What are we supposed to do? Switch to solar panels? Wind farms? Catch a lightning bolt? This is ridiculous. They might as well double it at this point."
A Mount Pocono resident who wishes only to go by Nick says, "People are struggling these days, especially now right after Covid. These increases are unaffordable and unfair to the average working man. There's already not enough income in the average family home for any bill increase. Things are already high enough."
The email sent to PPL customers states, "At PPL Electric Utilities, we deliver your electricity, but we don't own the power plants where it's generated. You can shop for an electricity supplier that is right for you. If you don't shop for electricity supply, we buy it for you and pass along the cost at no profit to us. That's called the default rate. We just completed our auctions and we're purchasing power for you at the lowest rate available. Inflation and global economic events are impacting all parts of the economy, including the cost of energy supply sources, such as natural gas. Those rising prices are reflected in the new default rate."
PPL insists it cannot control the electricity supply prices and recognizes the new challenges that they present and offers the following resources and programs for customers looking to lessen the impact:
• Shop for a better deal
• Save energy
• Spread out your costs
• Spread out your costs
Anyone with questions about the rate increases is urged to call PPL at 1-800-342-5775.
Have a news tip? Report it to (570) 451-NEWS.
Read PPL's full email:
Your current rate: 8.941¢/kWh
Default/price to compare rate as of 6/1/22: 12.366¢/kWh
Beginning June 1, the default rate that you pay for electricity supply will increase. We’re reaching out now to let you know about the change, give you time to prepare, and share some steps you can take to lessen the impact.
What’s changing, and how will it impact me?
The default rate (also known as the price to compare) is increasing. If you use 1,000 kWh of electricity a month (this is about average), your bill will go up by about $34.
Why is the default rate increasing?
At PPL Electric Utilities, we deliver your electricity, but we don’t own the power plants where it’s generated. You can shop for an electricity supplier that is right for you. If you don’t shop for electricity supply, we buy it for you and pass along the cost at no profit to us. That’s called the default rate.
We update the default rate twice a year based upon competitive energy auctions. We just completed our auctions and we’re purchasing power for you at the lowest rate available.
Inflation and global economic events are impacting all parts of the economy, including the cost of energy supply sources, such as natural gas. Those rising prices are reflected in the new default rate.
What can I do to lessen the impact on my bill?
- Shop for a better deal: You may be able to save money by choosing an electricity supplier. Always be sure to read the fine print and beware of variable rates that start low and increase with the price of energy. Shop smart.
- Save energy: We have tips, programs, and rebates available to help. You can also sign up for a free virtual home energy audit. Learn more.
Are there other programs that can help?
While we can’t control electricity supply prices, we recognize rising prices create additional challenges for those we serve, and we offer programs that can help.
- Spread out your costs: Our budget billing program evens out your bills over 12 months and makes payments more predictable. Log into your account to sign up.
- Get bill help: If you’re struggling to keep up with your electric bill, we have programs that can help. Learn more.
Visit us online to learn more or call us at 1-800-342-5775.