Utility Bills Soaring In Philadelphia

PECO, Philadelphia’s largest natural gas and electric utility, has been getting quite a bit of attention in the PA energy news sector lately, as electric and natural gas customers are seeing an intense increase in their monthly invoices, compared to previous years. According to the U.S. Bureau of Labor Statistics, households in the Philadelphia area paid 17.2 cents per kilowatt-hour on average of electricity, in the month of January 2022. Gas pricing has not been this high since the polar vortex of 2014. 

7 other Pennsylvania electric utilities also increased their energy prices as of December 1, 2021.  Each utility has a unique plan that the PUC regulates, in order to procure energy from power generation plants.  This is why the rates can vary by utility.

Natural gas prices, globally, have increased in this most recent year and have directly impacted pricing for energy and gas commodities.  The demand and consumption for these commodities are also on the rise, while the economy is booming again, post-pandemic.  Even with the 7.5% inflation rate, many customers in Philadelphia have recently seen higher increases than that on their utility bills.  Although these increases affect all of the US, PA has seen some of the most dramatic increases overall.

According to this article from the Philadelphia Inquirer, PGS (Philadelphia Gas Works) has seen an increase of 56% in gas prices in the last year, while PECO prices have raised by 67% in the last year. 

The sharp increases in pricing as a result of both the rise of demand and the Covid-19 pandemic,  have many PECO (and other PA utilities) facing financial difficulties and have made prevalent the need for resources to assist in paying utility bills.

The Pennsylvania Homeowner Assistance Fund (PAHAF) is one of the federally funded assistance programs for homeowners that are struggling to make their payments.  This fund is known as grant funding and the assistance is capped, at 24 months or $3,000, if the customer is eligible. 

If you are a PA electric and/or natural gas customer that is experiencing financial hardship, click here to see PUC’s Utility Assistance Programs, to check requirements and apply for help.

PGW (Philadelphia Gas Works) also filed a request on March 01, 2022, to the PUC (PA Public Utility Commission) to adjust the Gas Cost Rate (GCR) for residential customers to be slightly lower, starting September 01, 2022.  This request has not yet been approved, but for reference would adjust from $5.6123 to $5.6048/Mcf.  The GCR rate is calculated quarterly and refers to the supply charge on a PA invoice.

So you may be wondering, is there a way to prevent the price spikes from a volatile period of time in the market and protect yourself from unexpected and expensive utility bills?  The answer is Yes if your service location is located in a deregulated energy market, you can protect yourself from market fluctuations and lock in on a fixed rate.  Being in a deregulated energy market allows for you to shop for your energy and you have a choice in if you’d rather stay with the local utility or hedge an agreement with a fixed, all-in rate for the term of your agreement. 

This doesn’t always equal paying less, however, if you’ve noticed over the course of the previous year, how high prices have jumped, and you want peace of mind of a rate that won’t change when the market does.  It’s not always an easy process to undergo shopping for your own plan, but Ananta Energy Source can help you understand your situation and shop for your energy needs.  Contact us, here!