PPA Factors, Energy Costs and Consumption Comparison for billings October 2016 through January of 2017 and corresponding previous year

PPA Factors, Energy Costs and Consumption Comparison for billings October 2016 through January 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 October 2016 through the upcoming billing in January 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 October 2016 Rate Adjustment was 1.20 cents per kWh while in 2015 it was 2.68 cents per kWh, a reduction of 1.48 cents per kWh. The Transmission and Capacity charges were $172,658.49 and were only $109,982.90, for a difference of $62,675.59.

The November 2016 Rate Adjustment was 1.89 cents per kWh compared to 2.97 cents per kWh in 2015. This is a reduction of 1.08 cents per kWh. The Transmission and Capacity charges were $170,688.36 in 2015 and were only $105,755.06 in 2016, a reduction of $ 64,933.30.

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 will be 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 on the upcoming billing.

A customer using 500 kwh in a month saw a reduction in December $7.00 and in January $7.15. A customer with usage of 1000 kWh saw reductions of $14.00 and $14.30 in the same months.

The 43.0 degree average temperature in November was cooler than the 2015 average of 47.0 degrees for the same period. Ellwood City’s customers as a whole used 3,880,479 kWh in November 2015 as opposed to 3,654,131 in 2016. The significant reduction in the Transmission and Capacity Charges has resulted in the lower Rate Adjustments this year.

Thankfully, PJM pricing has returned to a more normal range and has provided much needed relief to the Borough and its Customers.