PPA Comparison: Nov. 2016 Through Feb. 2017 VS. 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 November 2016 through the upcoming billing in February 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 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.

The Rate Adjustment for December of 2016 dropped to 2.71 cents from 4.11 cents in December of 2015, a savings of 1.40 cents per kWh. The Transmission and Capacity charges went from $173,305.53 to $108,322.31 a reduction of $ 64,983.22.

The January 2017 Rate Adjustment was 2.41 cents per kWh while in 2016 it was 3.84 cents per kwh, a reduction of 1.43 cents per kWh. The Transmission and Capacity charges were $171,815.73 and are only $107,002.61, for a difference of $ 64,813.12.

The February 2017 Rate Adjustment will be 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 are only $108,654.49 in 2017, for a difference of $ 65,302.91.

A customer using 500 kwh in a month saw a reduction in January of $7.15 and in February $8.20. A customer with usage of 1000 kWh saw reductions of $14.30 and $16.40 in the same months.

The 30.0 degree average temperature in December 2016 was cooler than the 2015 average of 43.0 degrees for the same period. Ellwood City’s customers as a whole used 3,658,537 kWh in December 2015 as opposed to 4,199,664 in 2016.  The significant reduction in the Transmission and Capacity Charges continues to result 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.