Beginning January 1, 2011, the prices Peco and the customers pay for electricity will be based on electric market pricing, after having been capped for more than 10 years. At the same time costs to operate the electric systems also have been increasing. The effect of all of these changes on Peco electric customers will be price increases of about 10%. For the typical residential electric customer, the increase is about $8 more per month.
The May 2010 purchases resulted in an energy price of 7.95 cents per kilowatt hour (kWh) for Peco’s residential customers. When combined with 2009 purchases, the May purchases result in a price of 8.91 cents per kWh for Peco’s residential customers, 8.66 cents per kWh for small commercial customers, and 8.63 cents per kWh for medium sized commercial customers.
Because energy prices fluctuate, Peco is buying the electricity needed to serve customers in 2011 at four different times , reducing the risk to customers of purchasing electricity all at one time when market prices could be high. Peco will complete the remaining purchases in September 2010. The results of all four purchases will determine the exact price Peco’s customers will pay for electricity beginning Jan. 1, 2011.
Denis O’Brien, president and CEO of Peco, said: “We continue to be able to purchase electricity at lower wholesale market prices, helping reduce the prices for our customers. And we have programs available to help customers use less energy and save money.”
