Understanding Energy Supply Prices & Resource Adequacy
Why Are Energy Supply Prices Increasing?
Energy supply prices — which make up nearly 50% of your PPL Electric bill — are rising due to increasing market prices for energy. These increases are the result of a growing gap between electricity supply and demand. Several factors are contributing to this gap: rapidly increasing demand for electricity, planned retirements of power plants and limited new generation being added to the market.
These market conditions have caused the PJM capacity market prices to go from $28.92 to $329.17 per megawatt-day over the past two auctions, or one year. These capacity prices affect the electric generation supply prices on the supply side of your bill. This is what is driving Price to Compare increases.
It’s important to remember that electric companies in Pennsylvania don't control or profit from electric supply prices.
What is the Price to Compare?
It’s the price you pay for the supply section of your electric bill if you don’t shop for an alternative electric supplier. PPL Electric does not own power plants or generate power. We are required to purchase power on your behalf through a competitive auction process designed to secure the least cost over time, which is passed along without any markup or profit.
The Price to Compare also includes charges for transporting power across PPL Electric’s transmission system, which are regulated by FERC.
The Price to Compare changes twice per year, on Dec. 1 and June 1.
Advocating for Reliability and Price Stability
We understand and share your concerns about rising energy supply costs in your electric bills. While we don’t have direct control over energy supply prices, we have been vocal advocates for necessary legislative change that can bring more stability to energy supply and contribute to lower overall electricity prices, including allowing regulated utilities to invest in electric generation on behalf of our customers.
Read more perspectives on the resource adequacy issue:
Addressing Pennsylvania's looming energy crisis: Put the power back in Pennsylvania
What you need to know about rising energy costs, and resources to help you manage your bill today
‘All of the Above’ Isn’t a Slogan; It’s Pennsylvania’s Duty to Keep the Lights On
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