Erie Electricity Rates.

In Pennsylvania’s deregulated energy market, consumers can choose who supplies energy to their business or home. Your utility handles energy distribution and maintenance, while your supplier determines the rate you pay on your energy supply on your bill.

In Erie, Penelec is your utility. When you have not chosen a supplier, Penelec charges you a default variable rate called the Price to Compare (PTC). The PTC is required under Pennsylvania law, and the average is based on the price of wholesale energy over the last two years. This per-kilowatt-hour (kWh) rate changes quarterly, and as an average, it’s probably not the lowest price you could pay.

Gross receipt tax (GRT) is also part of Pennsylvania energy law. GRT is lumped in with your energy rate, and it’s currently 6.27%. We recommend comparing your rates with and without the GRT to ensure you are making an apples to apples comparison. Suppliers often quote rates without GRT, however, the utility always has it included in their rate. Regardless of your sales tax exemption, you are still required to pay GRT as an electric consumer.

When you sign a contract with a supplier, you’ll agree to either a fixed or variable rate. While fixed rates stay constant during your agreement, variable rates change with the energy market. Determining what’s right for you will depend on your preferred risk level and overall energy usage. While it’s rare, the Federal Energy Regulatory Commission (FERC) may require rate adjustments regardless of your rate type. Keep this in mind in case you see random changes to your energy price.

Still interested in learning more about the electric company Erie PA residents trust? Call us at 800-225-3813.