Exelon is PECO and with that decides part of your Pennsylvania Electric Rate

by jsgs45 on November 10, 2010

Electric Choice in PA

Electricity Choice in PA

Electric rates are based on a few factors and part of that has to do with what the Federal Energy Regulatory Committee approves of.

State owned utilities and private electric utility monopolies in Pennsylvania have their prices and rates approved by the FERC.

Various parties can come in and complain about a possible rate increase because the state of PA allows consumers to know ahead of time if there might be a rate increase on the table.

PA Electric Rates Compare

This regulation and oversight is supposed to prevent over pricing of a basic consumer service such as electric service in PA.

In the situation of using old outdated power generation facilities to meet peak demand for electricity instead of building new more efficient power plants there has to be a settling on how that extra cost will be spread out among electric providers and the retail electric consumer.

Exelon is a publicly traded corporation that was created in the year 2000 when a merger was concluded between PECO Energy Company and Unicom of Philadelphia.

Unicom is the same thing as Commonwealth Edison so the combining of both electric companies created a massive company known as Exelon that is primarily an electricity generation and distribution company but also works in the retail electricity market as well.

One of the main sources of energy generation for Exelon is Nuclear power. These power plants represent some of the cheaper more efficient types of electricity power generated for the states of Pennsylvania, New Jersey, and New York.

Some of the less efficient more expensive sources of power that Exelon controls are old coal fired power plants built in the 50’s and 60’s.

Because the commodity of coal has skyrocketed in price in recent months these old outdated maintenance nightmare facilities are becoming too expensive to keep running.

Coal Fired

Coal Power Generation

The best business decision for Exelon would be to close down these power plants.

The PA government however cannot allow this as these power plants are needed to provide electricity during peak demand periods in the day for the state of Pennsylvania, New Jersey, and now potentially New York city as well.

To keep these power plants running requires that the PA government regulate price increases on the average Joe’s retail electricity bill.

Unfortunately your Pennsylvania electricity rate may not be so clear going forward when seen in advertisments on radio, TV, and newspaper if the PUC for the state of Pennsylvania doesn’t require electric companies to bundle these increased fees and charges in their advertised rates.

Many times electric providers will use price increases like these as an opportunity to make their electric rates look better than a competitors.

These PA electric companies do this by leaving off these additional fees while more honest ethically run electric suppliers include the additional charges to show full price disclosure.

What ends up happening is an electric consumer may see a rate advertised for 7 cents per kilowatt hour when in reality it is 10 cents per kilowatt hour which is the same rate a competitor of theirs was advertising because they bundled in all charges.

Pennsylvania Electric Bill

Hidden Charges on Electric Bill

So please don’t blame PECO or Exelon which have been asked to keep open their inefficient coal power plants by the PA government to meet demand.

The government needs Exelon to continue running their coal fired power plants. These additional charges that may soon appear on your PA electric bill should also be bundled into any future advertised rates of the more than 30 retail electric providers in Pennsylvania.

If this issue causes a point of confusion for Pennsylvania electricity consumers please complain to the Pennsylvania electric choice PUC organization at http://www.puc.state.pa.us/utilitychoice/whatis.aspx?ut=ec

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