PPA Factors, Energy Costs and Consumption Comparison for February 2017 – May of 2017 and Previous Year

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 PJM has had upon the Rate Adjustment (PPA Factor) and customer billings during the months of February 2017 through the upcoming billing in May 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 February 2017 Rate Adjustment was 2.04 cents per kWh while in 2016 it was 3.68 cents per kWh, a reduction of 1.64 cents per kWh. The Transmission and Capacity charges were $173,957.40 in 2016 and were only $108,654.49 in 2017, for a difference of $65,302.91.

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 will be 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 are only $111,631.91 in 2017, for a difference of $ 70,965.09.

A customer using 500 kWh in a month saw a reduction in April of $4.85 and in May of $8.70. A customer with usage of 1000 kWh saw reductions of $9.70 and $17.40 in the same months in comparison with the previous year.

The 38.0 degree average temperature in March 2017 was cooler than the 2016 average of 45.0 degrees. Ellwood City’s customers as a whole used 3,895,934 kWh in March 2016 and only 3,784,819 kWh in 2017.  The significant reduction in the Transmission and Capacity Charges continues to result in the lower Rate Adjustments in 2017.

The PJM pricing returning to a more normal range continues to provide much needed relief to the Borough and its Customers.

Press release provided from the Borough of Ellwood City. For questions or concerns regarding the matter, please contact the Borough directly.