Lansdale Electric Holds The Line As Rates Rise Elsewhere
As we head into the final few months of winter everyone is, undoubtedly, watching their heating budgets closely with the hope that warmer weather will help them save money as we head into spring. However, in January, PECO approved a rate increase of around 6% for all electric and gas customers. I am proud to say that Lansdale Electric did not follow suit, and rates will remain stable for all of 2022.
The increase from PECO will cost the average consumer an additional $6.66 per month, moving the average monthly bill from just over $100 per month to around $107 per month. If you are one of the many people who take advantage of buying power from a third party via PECO, it is likely you will see the cost of power go up again before the winter is out due to the increasing cost of fuel to generate power in addition to other larger geoeconomic and geopolitical issues unfolding on a national stage.
However, Lansdale Electric customers will remain unaffected by these cost increases because our purchase power agreement protects us from dramatic energy cost spikes over the course of the year. Since we are buying power as a community in bulk, we can negotiate a rate that gives our community certainty for extended periods of time. Obviously, this shields us from sudden shifts in the cost of energy production while maintaining a competitive rate for Lansdale residents.
While we have certainty in our electric rates, the cost of capacity (the availability of power at peak volume at any time) can fluctuate but is not passed on to residents. However, Lansdale Electric is actively working to contain the cost of this challenge as well.
Lansdale Electric is working with NextERA and AMP to create a plan that caps our capacity charges at $130 per megawatt hour starting in 2023 and extending for a period of five years. This will further enhance our ability to provide a stable rate for residents while also mitigating risk related to sudden cost fluctuations for Lansdale Electric.
Combined, these tools allow us to enhance the service residents are provided by Lansdale Electric. Residents receive white-glove service the moment the power goes out while also benefiting from a cost structure that protects them from sudden and dramatic cost shifts.
The added benefit of all this is your electric investment, 100% of it, stays local. Every dollar invested in Lansdale Electric helps improve our community by providing funds to improve infrastructure, parks, or our police department.
Our ability to help give certainty to residents in their electric bill is a hallmark example of a community-first approach that is at the heart of all the services the borough provides and helps keep all of us moving forward together.