PRESS RELEASE: July 2016 PPA Rate Adjustment

PRESS RELEASE: July 2016 PPA Rate Adjustment.  The following information is being provided to inform Ellwood City Electric customers to a comparison of Electric Sold and Purchase Power Adjustment (PPA) or Rate Adjustment in July of 2015 with July of 2016.

The Rate Adjustment for July of 2016 (the August bills due in September) will be $0.0135 per kwh. This amount will be added to the electric bill of each user, Residential, Commercial and Industrial. In July of 2015, the Rate Adjustment was $0.0247 per kwh. The reduction in 2016 is equal to $0.0112 per kwh.

As previously provided the reduction in the Rate Adjustment is due, in large part to the reduction in the Transmission and Capacity charges assessed the Borough by the PJM. These charges to the Borough in July of 2016 are equal to $111,072. In July of 2015 these charges were $172,117. This is a reduction of $61,045 in 2016.

In July of 2016, the Borough purchased 5,691,268 kwh and in 2015 the Borough purchased 5,482,906 kwh. This is an increase of over 208,000 kwh in 2016.

In 2016, July’s temperatures exceeded the five year average by 9%. Temperature increases caused consumption changes to individual customer usage. Due to the end of the month and weekends the billing for August (due in September) will be a 33 day billing cycle.   In the future, we will be making every reasonable effort to stay at a 30 to 31 day billing period.