PPA Factors, Energy Costs and Consumption Comparison for billings January 2017 through April of 2017 and corresponding previous year

PPA Factors, Energy Costs and Consumption Comparison for billings January 2017 through April 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 January 2017 through the upcoming billing in April 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 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 was 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 were only $112,089.01 in 2017, for a difference of $ 69,879.68.

The April 2017 Rate Adjustment will be 2.86 cents per kWh while in 2016 it was 3.83 cents per kWh, a reduction of .97 cents per kWh. The Transmission and Capacity charges were $174,413.70 in 2016 and are only $103,112.75 in 2017, for a difference of $ 71,300.95.

A customer using 500 kWh in a month saw a reduction in March of $4.80 and in April $4.85. A customer with usage of 1000 kWh saw reductions of $9.60 and $9.70 in the same months.

The 38.0 degree average temperature in February 2017 was warmer than the 2016 average of 32.0 degrees for the same period. Ellwood City’s customers as a whole used 3,879,147 kWh in February 2016 as opposed to 4,050,063 in 2017. The significant reduction in the Transmission and Capacity Charges continues to result in the lower Rate Adjustments in 2017.

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