Climbing Rates

by Erin McAfee | May 10, 2022 | Uncategorized

On top of frustrating price increases at the grocery store and gas pump, many people are also being hit by rapidly rising utility bills, intensifying inflation’s toll on both people and businesses across the globe. The national average residential electricity rate was up 8% in January from 2021, the biggest annual increase in more than a decade. Commercial rates are following suit and we are seeing increases across the country. Depending on what state and utility territory you are located in will determine how your rates will be affected. Rate increases coupled with the upcoming seasonal demand increase of electricity could mean that folks will be paying much more for power this summer season.

Below are rate increases (by state) that we want you to be aware of. There are more to come, so we will be sure to keep you informed. Now is the time to get more strategic about your energy planning and see where you can not only reduce consumption, but do so by becoming more energy efficient for your both your wallet and the environment. If you’d like to meet with an experienced energy advisor from EnerConnex to review how you may be impacted by upcoming rate increases, please do not hesitate to reach out. info@enerconnnex.com

At Met-Ed, the tariffed commercial PTC-Default rate will be $0.10625 per kWh effective June 1, a 42% increase versus the current $0.07482 per kWh. Click here for Met-Ed utility default rates.

At Penelec, the tariffed commercial PTC-Default rate will be $0.11056 per kWh effective June 1, a 38% increase versus the current $0.08031 per kWh. Click here for Penelec utility default rates.

At Penn Power, the tariffed commercial PTC-Default rate will be $0.12533 per kWh effective June 1, a 25% increase versus the current $0.10002 per kWh. Click here for Penn Power utility default rates.

At West Penn Power, the tariffed commercial PTC-Default rate will be $0.10115 per kWh effective June 1, a 55% increase versus the current $0.06542 per kWh. Click here for West Penn Power utility default rates.

All of the new PTC-Default rates for the FirstEnergy Pennsylvania EDCs are to be in effect for the period June 1, 2022 through August 31, 2022.

PPL Electric Utilities has posted new electricity prices to compare for the period beginning June 1, 2022. Starting June 1, the PPL price to compare for residential (R) customers will be 12.366¢/kWh, nearly 40% higher than the current PTC of 8.941¢/kWh. Starting June 1, the PPL price to compare for small C&I customers (GS-1, GS-3) will be 11.695¢/kWh, about 21% higher than the current PTC of 9.675¢/kWh. The new PTCs are to be in place for the period 6/1/2022 to 11/30/2022.

The Public Utilities Commission of Ohio has approved results from an April procurement of Standard Service Offer supplies at Dayton Power & Light (AES Ohio). The SSO auction procured 50 tranches of supply for the period June 1, 2022 to May 31, 2023 at a tranche-weighted average price of winning bids of $122.50 per MWh. The starting price range for the auction had been $85.00 to $105.00 per MWh. There was a sealed bid round. For comparison, a March auction had procured 50 tranches of SSO supply for the period June 1, 2022 – May 31, 2023 at a tranche-weighted average price of winning bids of $75.13 per MWh.

Default rates for OH utilities can be found here: Illuminating Company, Toledo Edison, Ohio Edison, AEP

United Illuminating has filed new default service rates with the Connecticut PURA for the period beginning July 1, 2022. The July 1, 2022 to December 31, 2022 UI residential (Rate R) Standard Service rate will be 10.6200¢/kWh, which is marginally lower than the current UI Rate R rate of 10.6731¢/kWh. All of the Standard Service rates in this story include the Bypassable FMCC (where applicable) which is zero. The UI Rate GS Standard Service rate will increase about 8% to 10.6607¢/kWh on July 1, 2022, from the current rate of 9.9109¢/kWh.

Default rates for CT utilities can be found here: Eversource

Baltimore Gas & Electric has filed new SOS electricity rates for the period October 1, 2022 through May 31, 2023, as well as updates to the summer 2022 SOS rates to reflect changes in the by passable transmission rate and SOS Admin. charge.

For Schedule R residential customers, the BGE Total SOS Rate (including generation and transmission, but excluding reconciliation Rider 8) will be 9.887 cents per kWh for the period beginning October 1, 2022, about 27% higher than the updated summer 2022 SOS rate of 7.769 cents per kWh

For Scheds. G/GU -Type I customers, the BGE Total SOS Rate (including generation and transmission, but excluding reconciliation Rider 8) will be 9.210 cents per kWh for the period beginning October 1, 2022, about 24% higher than the updated summer 2022 SOS rate of 7.436 cents per kWh. BGE also filed new Type II SOS rates for the period beginning June 1, 2022.

Default rates for MD utilities can be found here: Potomac Edison, BGE

Stay tuned for updates on any future rate increases that you should be aware of.

Explore the Renewable Energy Spectrum

by Erin McAfee | May 4, 2022 | Uncategorized

Today, more and more businesses are incorporating renewables into their energy portfolio. Companies are setting goals and taking action. A recent report indicated 72% of large US energy users are actively pursuing renewable energy procurement in some form and over 45% of Fortune 500 companies have GHG reduction targets. Over the past several years the renewable energy market has evolved rapidly. All the heightened activity and awareness around renewables has increased available renewable energy deal structures for buyers depending on a facilities’ needs and limitations, budget, and preference. This has resulted in the creation of a renewable energy spectrum.

RECs – Renewable Energy Credits (RECs) represent the clean energy attributes of renewable electricity. RECs currently provide the easiest access to renewable energy markets and the least cost. RECs do not require a long-term commitment, can be purchased separately or bundled from a Retail Supplier, and cost less than other green options. The popularity of RECs continue to grow and support the renewable energy market. Given the demand increase, REC prices have become more costly than prior years.

Off-site – Off-site renewables are typically structured as either a Physical Power Purchase Agreement (PPPA) or a Virtual Power Purchase Agreement (VPPA). A PPPA is a product where a buyer takes title to the electricity and RECs in exchange for a fixed rate. There is usually an annual indexation with this option. Within a VPPA, the buyer does not own and is not responsible for the physical electrons generated by the project. The VPPA is purely a financial transaction. Beware, VPPA’s can be viewed as a financial instrument requiring a special accounting treatment. Some of the most common VPPAs include solar, wind and hydro.

Behind-the-meter – On-site or “behind-the-meter” renewable generation, including wind and solar, provide the highest level of visibility regarding a customer’s commitment to renewable energy. When you generate solar or wind energy on your own site, you are able offset additional cost components.

Industry Insight: featuring Tony Barnhart on PJM

by Erin McAfee | May 2, 2022 | Uncategorized

Tony Barnhart, Managing Director

EnerConnex has a strong customer base throughout the United States and beyond, operating across many different ISOs (Independent System Operator) and RTOs (Regional Transmission Organization). With this comes great responsibility in understanding the ins-and-outs of each ISO/RTO, how the uniqueness of each affects end-users, all while factoring in what is going on with current markets. EnerConnex proudly has extensive expertise in all ISOs/RTOs and can confidently advise our customers regardless of where they are located geographically. EnerConnex’s Tony Barnhart provides an inside look at how he is advising PJM customers as well as other insight on topics pertaining to PJM territories. PJM is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or part of 13 states and the District of Colombia.

• How are you advising customers given current market conditions in PJM territory?

In today’s energy price environment, when and how to buy your energy is a common question we receive from buyers.  Unfortunately, there’s not a simple answer given the many factors that weigh on a buyer’s decision.  Factors include risk appetite, geo-political events, supply/demand fundamentals, weather and the economy.  For these reasons, we take a consultative approach to energy procurement helping buyers understand the risk/reward of energy price structures or products.  These products range from 100% fixed where a buyer wants price/budget certainty to 100% variable with several options in between.  Given today’s 10-year plus high electric and natural gas prices, we have also witnessed more interest in a hybrid product structure approach.

Also, it’s important for buyers to understand what components, if any, of their contracted price are being passed through – either via regulatory changes or due to a supplier(s) estimate of a component in the contract rate.

• Do you advise customers in PJM differently than ones in other ISOs/RTOs? If so, how? What things/factors are you considering?

While many of the same factors weigh on a buyers decision in PJM as in other ISOs/RTOs, there is some uniqueness to each ISO/RTO.  For example, ERCOT is an energy-only market so capacity isn’t a part of the price component analysis.  In the NE ISO, buyers must understand the price impact of the Clean Peak Energy Standard (CPES) and the Clean Energy Standard Expansion (CES-E).  NY ISO has a similar, but different Clean Energy Standard.  While PJM states have various renewable portfolio standards and demand charges that impact a buyer’s price.

Understanding the various programs in each state ensures buyers are getting on their monthly invoice what they intended from their contracted rate.

• What is PJM doing to incorporate renewable energy projects? How has this impacted the way that your customers in PJM territories are buying energy?  

There is a significant backlog in the PJM interconnection queue – perhaps as much as 4 years.  As such, it may take a while for new renewable generation to come on line.  This will impact how customers buy renewable energy and the price.  Much like how we discuss energy procurement, we take a consultative approach to advising buyers on renewables – from RECs to PPAs to behind the meter solar –  the whole renewable spectrum, to help them achieve their sustainability goals.