The attached information is being provided by the Borough in order to inform Ellwood City Electric customers of the effect the reduction in the Transmission and Capacity charges set by PlM has had upon the Rate Adjustment (pP A Factor) and customer billings during the months of April 2017 through the upcoming billing in July 2017. Comparisons ofPPA 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 April 2017 Rate Adjustment was 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 were only $103,112.75 in 2017, for a difference of$ 71,300.95.
The May 2017 Rate Adjustment was 2.42 cents per kWh while in 2016 it was 4.16 cents per kwh, a reduction of 1.74 cents per kWh. The Transmission and Capacity charges were $182,597.00 in 2016 and were only $111,631.91 in 2017, for a difference of$ 70,965.09.
The June 2017 Rate Adjustment was 3.08 cents per kWh while in 2016 it was 4.42 cents per kwh, a reduction of 1.34 cents per kWh. The Transmission and Capacity charges were $177,650.20 in 2016 and are only $112,822.42 in 2017, for a difference of$ 64,827.78.
The July 2017 Rate Adjustment will begin the stabilized rate of 2.879 cents per kWh through December of 2017. In reality it should be 3.00 cents per kWh while in 2016 it was 4.21 cents per kWh, a reduction of 1.21 cents per kWh. The billing will have an actual decreased rate adjustment by 1.331 due to using the stabilized rate. The Transmission and Capacity charges were $183,015.01 in 2016 and are only $113,085.86 in 2017, for a difference of$ 69,929.15.
A customer using 500 kwh in a month saw a reduction in June of $6.70 and in July of $6.66. A customer with usage of1000 kWh saw reductions of$13.40 and $13.32 in the same months in comparison with the previous year.
The 58.0 degree average temperature in May 2017 was cooler than the 2016 average of 59.0 degrees. Ellwood City’s customers as a whole used 3,199,560 kWh in May 2016 while usage increased to 3,343,268 kWh in 2017. The significant reduction in the Transmission and Capacity Charges continues to result in the lower Actual Rate Adjustments in 2017.
On May 15, 2017 Borough Council adopted by Resolution, a six month PPA Factor of .02879 beginning with the July 1, 2017 billing through December 31, 2017 to continue its efforts to provide customers with a more stabilized monthly billing.