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Penelec Default Rates To Go Up By 30%

Pennsylvanian households and businesses served by the utility company Penelec will pay more for electricity from June 2021, if the Pennsylvania Public Utility Commission (PPUC) approves new tariffed residential and commercial default rates, filed by the group of FirstEnergy Pennsylvania utilities.

Penelec serves approximately 585,000 customers within 17,600 square miles of northern and central Pennsylvania. What sort of increase should customers expect to come into effect if the new rates are approved?

For Penelec residential customers, this means a 30% increase, from the current rate of 4.98¢ per kWh to a new rate of 6.46¢ per kWh, starting June 1, 2021.


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For Penelec commercial customers, this means a 5% increase, from the current rate of 6.05¢ per kWh to a new rate of 6.37¢ per kWh, starting June 1, 2021.

For a household with an average electric usage of 1000 kilowatt-hours per month, this represents a $15 bump on the monthly utility bill. For a small business with similar electric usage, it would mean paying approximately $3.20 extra. If approved, the new default rates would be effective for the three-month period between June 1, 2021, through September 1, 2021.

The steep proposed rate hikes are largely caused by the state-wide infrastructure and technological upgrades to the Pennsylvanian electric distribution system, spread out across the five years between 2020-2024.

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