Expensive Coal Power Past on to Pennsylvania Electricity Consumers, Hidden Charges Perhaps?

by jsgs45 on November 10, 2010

Coal Fired Power Plant

PA and New Jersey Power Generation

Power generation facilities effecting Eastern Pennsylvania and New Jersey electricity consumers may soon be going offline. The proposal is for two coal fired power plants to shutdown permanently but a new proposal is to keep these inefficient power plants running to meet the demand for electricity until June 1 2012.

To keep a power plant open beyond their retirement date means added costs to electricity service consumers. The issue that crops up with something like this is how electricity rates with additional fees will be advertised to the consumer.

Compare Pennsylvania Electricity Rates

A situation like this has a process setup by the Federal Energy Regulatory Commission (FERC) and is known as a “Reliability Must Run” contract. In short they refer to this as an RMR contract. The state is tied up in legal proceedings as retail electric providers in Pennsylvania negotiate how much additional money they must pay Exelon to keep these coal power plants running to meet increased demand for electricity power for their customers.

So on the one hand PA retail electric providers and the government are on their hands and knees begging for Exelon to keep the power plants running but at the same time are fighting to keep the price they pay for this additional energy at competitive prices.

These additional fees and charges will then be past on to Pennsylvania and New Jersey retail electricity customers. Whether they show these additional charges in their advertised retail prices they list on radio, TV, and newspaper ads is a completely new issue.

When it comes to hidden fees and charges in an electric rate electricity providers have creative ways of passing the buck on to the generation facility when a customer complains.

Many electric companies will show a really good cheap looking rate but when the customer gets their electric bill the rate averages out higher.

Questions are then raised to their electric provider and the provider simply explains that the rates they advertised and offered in their proposal were in fact the correct rates.

They then explain how any additional charges are simply “pass through” charges they have no responsibility over.

This would make sense if when you go to the gas station you see one price for gasoline but when paying at the register they tag on about 50% to that price.

Fortunately the 50% in government fees and taxes is included in the gas price you see displayed on those big gasoline billboards showing you the price to fuel your car.

In the same way energy consumers assume if any additional fees or charges come down the pike that will know about them because they will be included in the overall rate.

Pennsylvania retail electricity providers will not necessarily include all these additional fees and charges coming from things like Reliability Must Run contracts which is why it helps to have an energy consultant go out to bid for your commercial business or residential account.

We pride ourselves in bundling in all fees and charges and presenting a clear straight forward apples to apples comparison of Pennsylvania and New Jersey electric rates.

Both commercial business and residential electricity service customers looking for honesty and integrity in regards to electricity rate pricing will find our comparison and reverse auction process to assist your companies goal for procuring the cheapest electricity rate.

We go out to bat for our customers and are not a shill company representing the providers. Our process involves sending your electric usage or estimated usage out to multiple competing electric companies in Pennsylvania and New Jersey and having them compete against each other.

We present your commercial electricity rates in a detailed PA or New Jersey electric rate comparison. Bottom line savings numbers are listed and an energy consultant is available to go over the results and explain any advanced options available to your company.

You may call us with any questions at 1-800-971-4020

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