Are PECO special rates going away?
I live in Southeastern PA. PECO is my utility company. Heat pump owners get special (lower) electric rates from October to May. These rates help to make owning a heat pump worthwhile. I've heard through the grapewine that those special rates for heat pump owners may go away soon (next couple of years). Since I am in the process of selecting a new system, that information can play a major role in selecting the officiency of the heat pump (more efficient unit will payback much sooner).
Does anyone have any information regarding the expiration of those special PECO rates? Does anyone sit on PECO Board and willing to give us heads up? If you do not know, where should I go to get this kind of prospective information?
PECO wants to try some new things for billing.
You might want to read up on at their website.
You can also send them an email through theircontact link, and ask them.
Just an aside here, but I just got off the phone w/ PPL this AM b/c I am considering a heat pump install as well. While my rates are lower then PECO, PPL does not have a special rate schedule for folks heating w/ electric.
No they don't.
Did they tell you about the rate hike thats coming. I think in 2010.
Thanks for the heads up.
Originally Posted by beenthere
Great. Now I have to add 30% to the calculations done for my Heat Pump estimate. Still cheaper then Propane though (I think).
It will be.
Gas, and oil are going to continue to go up also.
Having a good friend on the PECO board,he said that the RH rate is not going away.They are looking for a 20% increase in 2010. You can go up from 6 cents with RH or 15 cents a KW .I have not sold many a/c unit in my area which is PECO country and made up an EASY cheat sheet to get the rate with going through ALL the problems. Everyone said it was easy to do,without the backdoor way GOOD LUCK!!!Can we get a shot at your job??
It's NOT the BRAND,it's the company that installs it!!!!!
The rates will go up from what I hear
I did come across this:
Originally Posted by dafreerider
However, I haven't spent time digging via google, PECO's site, etc. Here is another link while I have it handy:
I've been thinking about switching to dual fuel HP/gas backup and have looked at the price to compare chart. I went to the PECO web site and see that they have a new rate filling effective November 30, 2010 before we have even gotten to 2010 or switched suppliers. What is this? Extra money for Christmas?
The rate for regular service increased to .0919 up from the current .0698 in the winter
Heating service went to .0937 for the first 600 kwh then .0495 for amounts over 600.
Since the newspaper ariticle mentioned that the Heating service rate will no longer exist after 2010-2011 heating season It might be wise to just base your calcuations on the regualr rate. Is 9 cents high for electric heat pump rates?
Also consider that there is the variable distribution charge in addition to the energy/transmission charge that everyone will pay to PECO energy regardless of what company you buy your electricity from. The variable distribution charge is applied per Kwh so the more you use the more you pay. The charge looks about the same as is now: .0520 in the winter. In the summer it is .0520 up to 500kwh then .0596 for every kwh you use over 500.
Last edited by jerrod6; 11-26-2010 at 06:26 PM.
Reason: found additional information
Well, Obama did say under his administration electric rates will "skyrocket".
This reminds me of the 70's when oil prices went through the roof and PECO asked everyone to "conserve" energy. Well, everyone conserved so much energy that PECO said they HAD TO RAISE RATES to make their ends meet.
Since PECO has everybody by the short hairs, I guess we can call this "legal robbery".
People always say that about a regulated monopoly. Didn't all kinds of energy prices rise through the roof in the 1970's, oil gas AND electricity? Construction costs rose immensely too, making plant construction a nightmare. I think that nuclear plane PECO was constructing was more of a direct cause of rake hikes. The only utilities that escaped that kind of grief were ones which relied almost completely on coal... the kind of coal plants built w/o emission controls which were cheap to build, cheap to run, and produced enough pollution to actually kill a statistically measurable number of people.
Originally Posted by Jack2007
Regards -- Pstu
You have a point. I was around during the time our 2 nuclear plants were constructed in the 1980’s. Up until then our rates were steady each year but as soon as Plant 1 began construction we faced rate increases every June. PECO wanted a large increase all at once, which the utility commission denied so then our rates increased every year in June. After the first reactor was constructed PECO decided to construct a second one. We were told it would keep prices down. Another 5 or 6 years of rate increases every June until that plant was constructed.
Originally Posted by pstu
Because PECO could not get the full rate increase at once, the public utility allowed them to recoup the cash they otherwise would have gotten. This recoup was done by applying an unrecoverable rate factor to each bill. This factor was multiplied against the total Kilowatt hours and then the resulting figure was added to the bill. So this is how PECO came to have the highest rates in Pennsylvania. We do the same thing everyone else does – turn lights on, run AC, run heaters, dryers, we just pay more to do it.
Several years ago PECO customers were allowed to choose another provider for electric generation. This is when our bill was segmented into separate charges for generation, transmission, and distribution. PECO provided the distribution to each house so you paid them for that, while paying the energy provider for electricity, and transmission. I chose among many providers and was able to get electric cheaper than PECO’s prices. In a few years the providers pulled out of the state saying that they could not make a profit because electric regulation. So far we don't have as many residental providers as before. Now the state has passed this new law to deregulate electricity and will also force everyone in the state to have smart meters. I have a semi smart one in that no person has to read it because it transmits a reading to the company every morning - I guess that’s all it can do.
Back to heat pumps. Next heating season the electric heating rate will disappear and the info I see now says that the generation and transmission rate is expected to be 10.16 cents per KWH. Is this too high to run a heat pump?