PPA Factors, Energy Costs and Consumption Comparison for Billings March 2017-June 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 March 2017 through the upcoming billing in June 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 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 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 will be 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.

A customer using 500 kWh in a month saw a reduction in May of $8.70 and in June of $6.70. A customer with usage of 1000 kWh saw reductions of $17.40 and $13.40 in the same months in comparison with the previous year.

The 55.0 degree average temperature in March 2017 was warmer than the 2016 average of 47.0 degrees. Ellwood City’s customers as a whole used 3,254,797 kWh in April 2016 while usage increased to 3,754,346 kWh in 2017.  The significant reduction in the Transmission and Capacity Charges continues to result in the lower Rate Adjustments in 2017.

On May 15, 2017 Ellwood City 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.

Press release provided by the Borough of Ellwood City

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