In Pennsylvania, you have the power to switch your electric supplier - the company that generates your electricity. Generation supply costs make up most of an average electric bill. The other part of your bill, the distribution service, remains with your local electric utility. Understanding the energy charges on your monthly electric bill is an essential step in controlling your budget. The individual charges that make up your electric service are listed separately on your electric bill. Learn more about how each fee is calculated and how it can affect your bill.
Charges for the use of local wires, transformers, substations, and other equipment used to deliver electricity to end-use consumers from the high voltage transmission lines. Remains regulated by the PUC.
A monthly basic distribution charge to cover costs for billing, meter reading, equipment, maintenance, and advanced metering when in use. Remains regulated by the PUC.
A charge, or a credit, or electric rates to reflect changes in various state taxes included in your bill. The surcharge may vary by bill component. Remains regulated by the PUC.
Charges for moving high voltage electricity from a generation facility to the distribution lines of an electric distribution company. If using a competitive supplier, Transmission is rolled into generation. Based on federally regulated charges.
Charges for the production of electricity. Generation supply costs make up most of an average electric bill and are dependent on your choice of supplier.
From budget billing to hardship funds, there are a number of programs available in Pennsylvania to help with your electric costs. Contact your local electric distribution company about qualifying for these programs.
The price to compare (PTC) is the price per kilowatt hour (kWh) your electric distribution company will charge. When asked, the competitive supplier also will provide you with a PTC, allowing you to make an apples-to-apples comparison on price for the generation portion of your bill. Be sure to ask how long the price is effective.
The basic unit of electric energy for which most customers are charged and is used to determine how many kilowatts an electric device uses per hour. Customers are usually charged for electricity in cents per kilowatt-hour.
The Gross Receipts Tax (GRT) is a Pennsylvania state tax imposed on the gross receipts from sales of electric energy within Pennsylvania and is included in the PTC. The Gross Receipts Tax is paid by both the electric distribution company (EDC) and the EGS on the basis of the company’s or the supplier’s gross receipts from the sale of generation supply within Pennsylvania. EDCs and EGSs include the GRT as part of the cost of electric generation supply.
