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As PPL rate hikes near, others confirm discounts
Dominion Retail, OnDemand Energy Solutions: Lower residential rates coming.
By Rory Sweeney rsweeney@timesleader.com
Staff Writer
With PPL Electric Utilities announcing a roughly 30-percent increase when rate caps expire on Jan. 1, two companies have confirmed they’ll be offering lower rates for residential customers.
PPL has spent the past three years buying energy to supply its customers for 2010, when deregulation goes into effect in its territory. At that point, customers will be able to shop for energy suppliers, but won’t see any change in service because it will still be administered by PPL. “The electrons will likely come from the same place,” said Dan Donovan, a spokesman for Dominion of Richmond, Va.
Dominion Retail is offering rates at 10 percent less than whatever PPL’s price per kilowatt-hour ends up being. “We’re pretty sure it’s going to be about 10.5 cents,” said Donovan. “Whatever it is, we’ll be 10 percent less. … If anything, we’d round it down.”
The offer is a one-year contract for the first 5,000 customers who sign up, but Donovan expected the company will secure enough power for all PPL residential customers. “We would anticipate we would offer 10 percent to all 4 million customers, but we don’t anticipate all of them will take it,” he said. “We don’t expect 1 million.”
OnDemand Energy Solutions, which is already offering an aggregation pool for businesses who are members of chambers of commerce in the PPL territory, plans to offer a similar program for employees of those companies.
The company made a presentation at the Chamber of Commerce of Greater Wilkes-Barre earlier this year. “Everyone in our pool to date is going to do phenomenal,” said John Bodine, the vice president for business development. “Virtually everybody should be switching right now.”
The company, which groups smaller customers and markets their combined demand directly to suppliers, expects to beat PPL’s price for businesses by an average of 2 cents per kilowatt-hour, Bodine said.
He hoped that the residential program would see equal savings. “I would say, where the wholesale market is and where the final (PPL) residential rate is, if we can do something similar (to what’s offered to businesses) we should be well above a 10-percent discount,” he said. “I’m really hoping that we can still have something in November.”
The company is currently negotiating with suppliers to structure the process, but expects a “huge” customer demand. “What takes a little longer is there are less suppliers interested,” Bodine said, plus there are more rules about switching customers, “so it’s a little bit more cumbersome. … It’s a matter of time; we will have a residential program.”
Donovan of Dominion said the company started with residential instead of business customers because “we have a different niche than everybody else. … We’re pretty experienced in that we already about a million customers in either gas or electric.”
Dominion can beat PPL’s prices, he said, because PPL is “recovering some historical caps, and we are able to sell at current prices. Current prices have gone down.”
18 Reader Comments
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Slickster said...
Can current PPL customers switch? I'm confused. If it were to save me money, I'd love to dump PPL if they are going to raise my rates 30%
October 14, 2009 at 10:03 AM
Dave - Lackawanna County said...
I still don't see how this is fair or legal. PPL has made more than enough money from us. The economy is terrible. I don't know how people are going to afford a rate hike right in the middle of winter. Crime will be on the rise! Shop around for better rates, that's a joke!
October 14, 2009 at 11:17 AM
shocked in nepa said...
PPL aka PP&L in association with PA PUC appears to receive automatic electric rate increases from local wyoming valley residents to pay for new nuclear add-on in berwick pa to accomodate nuclear electric power for new york and new jersey. it would be easier if PPL built the nuclear plant in NY or NJ. NEPA residents receive never ending rate increases and "iodine pills" for the school children in close proximity (10 miles) to the NUKE Plant. remember tmi and chernoby? the nuke plant in berwick had a license from the nrc for 20 years recently granted a permit for another 20 years on the old plant which stores spent nuke rods on site in berwick. SHAME ON PPL!!
October 14, 2009 at 11:54 AM
Wondering said...
How do we get in touch with these other companies?
October 14, 2009 at 1:53 PM
RWilliams said...
YES, you can switch! I already have.
October 14, 2009 at 2:12 PM
Ziggy said...
Is anyone old enough to remember the claim that local residents would get free electricity from PP&L in exchange for locating the nuke plant in Salem township? How'd that work out? On a positive note, Luzerne County would have been broke long ago had it not been for the taxes from the plant.
October 14, 2009 at 2:33 PM
ScottP said...
This is AMAZING ! What in the !@#$ are our "Elected" officials doing? At a time like this we need a 30% increase. Are you people nuts?
October 14, 2009 at 3:27 PM
James said...
Perhaps, however, the rate increase will allow the companies to lower their other (static) charges, such as distribution and line charges. If that does happen, that would place less of the burden on small businesses and residences, where electricity use is (compared to large businesses and factories) rather small. In addition, it would encourage energy conservation.
October 14, 2009 at 5:57 PM
ruth lloyd said...
please tell me how to get in touch with other companies?????? i am widowed and earn my living by cleaning houses and part time bus driver i cannot afford this?????????
October 14, 2009 at 6:08 PM
Trust me I know what Im talking about!!!! said...
PEOPLE...Make sure that you do your research about these other companies.They will try to offer the better deal but there's always a catch to the better deal.Yes it might sound good at first, but I cant stress enough to make sure you read the T&C, find out about any penalties they have if you decide to exit out of their program,and how long will you be tied down to a contract...Some of these companies do not offer any budget billing on the supplier portion of the bill, so your bill might actually double.Althought PPL's prices might seem high but I would strongly suggest not to switch sppliers until you do some extensive research.Also make sure you contact the PUCO for any comparison charts, so you can compare rates with other electric suppliers.
October 14, 2009 at 6:12 PM
Philip G. Pizano said...
They better get out before the Court House Investigation gets there. Why did they build the Power Plant if it is not benefiting our area?
October 14, 2009 at 6:17 PM
James said...
Also, to Shocked in NEPA, a bit of friendly advice: "close proximity" is grammatically incorrect; proximity meaning closeness, "close proximity" would be redundant.
October 14, 2009 at 6:23 PM
wayne michael said...
These rate increases are another reason to kick out ALL the incubants in the Pa. legislature.
October 14, 2009 at 9:40 PM
Mill City Joe said...
30% now & 40% more when the Nobel Peace Prize winners Cap & Tax scam (AKA climate change legislation) is enacted by the Democratic-controlled Congress ! Voters...you asked for it, you got it !!! Change will be destructive !!!
October 15, 2009 at 10:02 AM
Carl said...
I'm certainly not for increased rates, geez, I would be for a decrease but yet I can't help wondering what these "other" companies will do for the state or small localities and charities like PPL does. I guess probably nothing. I know from a neighbor what PPL gives to places like United Way and local schools, I'm not sure 10% less of an increase is worth it to me. I'll shop around I suppose but there are always other things that I'll have to consider.
October 15, 2009 at 11:02 AM
Pam, PennFuture said...
By 2011, all utility companies can raise their rates because rate-cap legislation that was enacted in the '90s will expire and true prices will be charged. As this article indicates, the long-term effect could be good for all customers because of increased competition.
October 15, 2009 at 11:26 AM
yellowhello said...
the legislation was passed by the gov. ppl is only following the law.tell me hasent every thing went up in price over the last ten years?maby dereg.should never have happened,well to late.
October 16, 2009 at 10:39 AM
charles said...
why are they deregulating the rates. They made plenty of money anyway. Where are our Politicians, on vacation as usual?
October 19, 2009 at 7:42 AM
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