PPA Factors, Energy Costs and Consumption Comparison for billings December 2016 through March of 2017 and corresponding previous year.

PPA Factors, Energy Costs and Consumption Comparison for billings December 2016 through March of 2017 and corresponding previous year.

The attached information is being provided in order to inform Ellwood City Electric customers of the effect the reduction in the Transmission and Capacity charges set by PJM has had upon the Rate Adjustment (PPA Factor) and customer billings during the months of December 2016 through the upcoming billing in March 2017. Comparisons of PPA components (Energy Purchased, American Municipal Power-Power Charges, as well as Transmission and Capacity Charges) were used. The Rate Adjustment is added to the electric bill of each user, Residential, Commercial and Industrial.

The Rate Adjustment for December of 2016 dropped to 2.71 cents from 4.11 cents in December of 2015, a savings of 1.40 cents per kWh. The Transmission and Capacity charges went from $173,305.53 to $108,322.31 a reduction of $ 64,983.22.

The January 2017 Rate Adjustment was 2.41 cents per kWh while in 2016 it was 3.84 cents per kWh, a reduction of 1.43 cents per kWh. The Transmission and Capacity charges were $171,815.73 and are only $107,002.61, for a difference of $ 64,813.12.

The February 2017 Rate Adjustment was 2.04 cents per kWh while in 2016 it was 3.68 cents per kWh, a reduction of 1.64 cents per kWh. The Transmission and Capacity charges were $173,957.40 in 2016 and were only $108,654.49 in 2017, for a difference of $ 65,302.91.

The March 2017 Rate Adjustment will be 2.40 cents per kWh while in 2016 it was 3.36 cents per kWh, a reduction of .96 cents per kWh. The Transmission and Capacity charges were $181,968.69 in 2016 and are only $112,089.01 in 2017, for a difference of $ 69,879.68.

A customer using 500 kWh in a month saw a reduction in February of $8.20 and in March $4.80. A customer with usage of 1000 kWh saw reductions of $16.40 and $9.60 in the same months.

The 33.0 degree average temperature in January 2017 was warmer than the 2016 average of 26.0 degrees for the same period. Ellwood City’s customers as a whole used 4,277,810 kWh in January 2016 as opposed to 4,055,676 in 2017. The significant reduction in the Transmission and Capacity Charges continues to result in the lower Rate Adjustments. The PJM pricing returning to a more normal range.

The PJM pricing returning to a more normal range and has continued to provide much needed relief to the Borough and its Customers.