What you need to know about electric choice in Pennsylvania. Inside this handbook: • Components of your bill • Questions and answers about Electric Choice • Consumer protection checklist • Energy-saving tips • Shopper’s worksheet 2 T his handbook describes what Electric Choice is about and explains what you need to know to shop for electricity. Under Pennsylvania law, all electricity customers in the state can choose the company that generates their electricity. This means you can buy your electricity from any number of competing suppliers. That electricity still will be delivered to you over existing wires by PPL Electric Utilities. You can shop by price. You can shop based on your environmental priorities. Or you can shop for a company that offers special services. How will this benefit you? You may save money. Your savings will vary depending on which supplier you choose and on how much electricity you use. This information is part of PPL Electric Utilities’ effort to help you learn more about Electric Choice and become an informed electricity consumer. PPL Electric Utilities delivers electricity to 1.3 million customers in 29 counties of eastern and central Pennsylvania. What are you shopping for? Generation. Electric Choice is easier to understand when you picture the three steps involved in getting electricity to your home or business. 1. Generation Many Suppliers 1 2 3 2. Transmission PPL Electric Utilities Generation: Making electricity. 2. Distribution PPL Electric Utilities Transmission: Moving electricity from where it’s made to the wires that supply your neighborhood. Distribution: Delivering electricity to your home or business. With Electric Choice, you may shop for the company that makes the electricity you use, just as you shop for other goods and services. Whether or not you choose a new electric generation supplier, you can count on PPL Electric Utilities to continue delivering safe, reliable electric service to your home or business. 3 Parts of your bill under Electric Choice (This example is for a customer who has selected a new electric generation supplier, and receives one bill from PPL Electric Utilities.*) Distribution Charge: The price for delivering electricity to your home or business. Customer Charge: The monthly charge to cover PPL Electric Utilities’ basic costs for billing, metering and meter reading. Transition Charge: A charge on every customer’s bill to cover an electric utility’s transition or stranded costs, as allowed by the Public Utility Commission. These costs are not new; they have always been part of your bill. (Transition costs are those costs a utility would have been able to collect in a regulated environment but will not be able to collect in a competitive environment.) 4 ectric PPL El s Utilitie For: e John Do Street in a M 0 10 00 , PA 000 n w to y An r Service Custome Street. in a M 3 12 , PA n w to Any 92 12345-678 55 5-55 1-800-55 R FOR YOU N TIO INFORMA ter Next me g in d a re out on or ab Feb 26 s about Question G BILLIN ill b PRIOR t s rom la Total f h . 15 - T ed Jan 99 iv e c e r 19 nt an. 29, Payme as of J e c n la Ba enera ctric G le E r o sf H at .x Charge 00 KW 7 : n io H at t Genera sion: 700 KW lie is pp Transm eneration Su G l a Tot Distr Electric r o f s Charge ution: Distrib er Charge Custom at .xx cents H 700 KW Charge: n io ts Transit H at .xx cen W K u 0 ib 70 Distr lectric Total E djustment S A Pa. Tax C BI ECTRI L E L A TOT umber omer N st Your Cu 7890 12345-6 or writing g en callin Use wh Generation Charge: The amount your electric generation supplier charges for making your electricity. 700 KWH at .xx cents per KWH $61.25 -61.25 ! $0.00 ou hank-Y upplier ation S KWH ts per xx cen s per KWH nt t .xx ce es g r er Cha pany n Com ributio x.xx xx.xx $ xx.xx H per KW WH s s per K pany Charge m o C n utio rge Surcha ILL Transmission Charge: The cost of moving electricity from a generating plant to the PPL Electric Utilities distribution system. x.xx xx.xx xx.xx xx.xx xx.xx $xx.xx When you select an electric generation supplier, that supplier, not PPL Electric Utilities, will bill you for Transmission charges. Pa. Tax Adjustment Surcharge: A surcharge on your total Distribution charges from PPL Electric Utilities, which reflects changes in various state taxes already included in your bill. This surcharge may change periodically. *If you select a two-bill option, you will receive a bill for Generation and Transmission charges from your electric generation supplier, and a separate bill for your Distribution, Customer and Transition charges from PPL Electric Utilities. 5 Why would I want to shop for electricity? Shopping for an electric generation supplier could save you money, and you may shop for a supplier based on your needs and preferences. Questions and answers about electric choice 6 Do I have to choose an electricity supplier? No. If you don’t choose a supplier, PPL Electric Utilities will supply as well as deliver the electricity to your home or business. What do I need to know to shop? You need your “Price to Compare,” your monthly electricity use and a list of licensed suppliers serving your area. What is the “Price to Compare?” This is the price per kilowatt-hour you need to compare offers and potential savings from other electric generation suppliers. It represents PPL Electric Utilities’ charges for the generation and transmission part of your electric service. For information about your “Price to Compare” call PPL Electric Utilities. Where can I find my electricity use? You can find it on the front page of your PPL Electric Utilities bill, next to the usage chart. How do I find out who are the suppliers in my area? You can get a list of licensed suppliers from PPL Electric Utilities. You also can call the Pennsylvania Public For more information, call PPL Electric Utilities at 1-888-668-4775, visit our Web site www.pplweb.com/choice, Utility Commission (PUC) toll-free at 1-888-782-3228 or visit the Web site at www.utilitychoice.org For the prices charged by residential suppliers, call the Office of Consumer Advocate toll-free at 1-800-6846560 or visit their Web site www.oca. state.pa.us. How much money will I save? That will depend on how much electricity you use, your “Price to Compare” and the price charged by your supplier. What if I have questions about my bill? You should address your questions to the company that sent you the bill. If you choose a new supplier, you may select the option of receiving one combined bill from PPL Electric Utilities (see pages 4-5). Some suppliers may offer you the choice of getting two bills – one from the supplier and one from PPL Electric Utilities – or a single bill from the supplier. After I choose a supplier, can I switch again? Yes, You may switch at any time, unless you have agreed to other terms with your supplier. What if my supplier goes out of business or stops serving me? You will not lose your electricity supply. PPL Electric Utilities will immediately resume supplying your electricity. priorities in Electric Choice. PPL Electric Utilities still is required to maintain a reliable, safe delivery system. Where do I call if my power goes out? For PPL Electric Utilities customers, that toll-free number is 1-800-342-5775 (1-800 DIAL PPL). Will PPL Electric Utilities still provide assistance for low-income customers? Yes. Special payment programs for low-income customers will continue. Call toll-free at 1-800-DIAL-PPL (800342-5775) Will my electricity supply be reliable if I switch suppliers? Yes. Reliability and safety are high call the PUC at 1-888-782-3228 or call the Office of Consumer Advocate at 1-800-684-6560. 7 klist on Chec ti c te o r P r e m u s n o C r the ensed by the PUC. Fo free at lic be t us m rs lie pp ic generation su act the PUC toll✔ Licensing — Electr you may call PPL Electric Utilities, cont utilitychoice.org w. current supplier list the PUC Web site ww t si vi or ) CT FA C PU 8 includes 1-888-782-3228 (1-88 re to ask if the price r detailed su Be . ed at ul lc ca e ices ar vocate fo u understand how pr fice of Consumer Ad ✔ Prices — Be sure yo sion and other charges. Contact the Of ww.oca.state.pa.us. generation, transmis 00-684-6560 or visit their Web site at w 1-8 price information at and get ters. Listen carefully to use the “Shopper’s ke ar m le te by d te ac ay want You may be cont it to any offer. You m m m co ✔ Telemarketers — u yo re fo be u need all the information yo and 11 to record the information. s 10 Worksheet” on page nd all of their terms. ta rs de un d an lly fu Read them care ✔ Sales contracts — ose and the price ch u yo r lie pp su e th t your sure it lists ion to your bill to be have been switched to a supplier withou nt te at e os cl y Pa — might ✔ Errors? to. If it doesn’t, you ed re ag u yo s rm te d an called “slamming.”) permission. (This is 8 Tips for saving mo ney on your electric bill ✔ Heating and cool ing sy Seal any air leaks in stems are the largest users of electricity ducts, and service th in your home. e unit annually. ✔ During warm wea ther, you can save 3 to 5 for every degree yo u raise the thermosta percent on your air-conditioning costs t. you can reduce ener gy costs by turning During the winter, down your thermosta t. ✔ Use low-flow show er heads to save thou sands of gallons of hot water each ye ar and reduce your energy costs. ✔ Insulation — Make sure on outside walls and you have the recommended amount in the attic. ✔ Major appliances — Buy them regularly. Look high-efficiency models, and service for the yellow Energy new appliances. Guide label on 9 Shopper’s worksheet Your “Price to Compare”__________________ * Supplier Name Use this section while shopping to ask questions and record information you get from electric generation suppliers. Date of Talked to Total Price Call Generation Transmission Sample : May 1st John Doe XYZ Company 10 3.5 cents/ kwh 0.5 cents/ kwh Other Incentive Bonus Est. Savings on Total Bill 0.2 cents/ None 10% kwh *The “Price to Compare” represents PPL Electric Utilities’ charges for generation and transmission services. Use the price to compare to decide whether or not an offer from an electric generation supplier will save you money. To help you determine your “Price to Compare,” use PPL Electric Utilities’ “Price to Compare” brochure. 1 or 2 Bill Contract Minimum Option Required Term** Both Yes 1 year available days Energy Used to Produce Electricity Coal, oil, gas, nuclear, renewable Community Record Education programs Notes Will send more information in 7 **Your “Price to Compare” will change each year on Jan. 1. You may want to consider that when you shop for an electric generation supplier. 11 www.pplweb.com/ 40M 4/06