PPA Factors, Energy Costs & Consumption Comparison

Nov. 17 — PPA Factors, Energy Costs and Consumption Comparison Relating to Energy Purchases from September through November of 2015 and 2016.

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 September, October and November. 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.

light-bulbThe Rate Adjustment for September of 2016 dropped to 1.35 cents from 2.47 cents in September of 2015, a savings of 1.12 cents per kWh. This savings was due in large part to the reduction of Transmission and Capacity fees charged the Borough by PJM Interconnection. The Transmission and Capacity charges went from $172,117.00 to $111,072.30 a reduction of $61,044.70.

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.

A customer using 500 kWh in a month saw a reduction in September of $5.60, in October $7.40 and in November $5.40. A customer with usage of 1000 kWh saw reductions of $11.20, $14.80 and $10.80 in the same months.

The 55.0 degree average temperature in October was slightly warmer than the 2015 average of 52.0 degrees for the same period. Ellwood City’s customers as a whole used 4,513,665 kWh in September 2016 as opposed to 4,569,562 in 2015.  Again, 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.