Pennsylvania Utility's Residential Default Service Rate To Be 1.7¢ Per kWh (44% Decline)

Pike County Light & Power Company has filed with the Pennsylvania PUC electric default service rates for the three-month period beginning March 1, 2020

For residential customers, the March 1, 2020 default service charge is to be 1.6910¢ per kWh, a 44% decline from the current rate of 3.0110¢ per kWh

Low wholesale market prices for electricity, plus the application of a reconciliation (refund) of prior over-collections, capped at 2¢ per kWh, have led to the residential default service rates under 2¢ per kWh

Due to the cap on reconciliations, residential over-collections continue, resulting in the need for continued reconciliations

Absent the 2¢ per kWh cap, the residential class would be due a default service reconciliation refund amount (credit) of 4.2652¢/kWh, which once again exceeds the market price of electric supply for the quarter (which is 3.6910¢ per kWh)

Pike's filed default service rates are as follows:

March 1, 2020 through May 31, 2020
  (¢/kWh)
               Market   Reconciliation   Total
               Price                     Rate
Residential    3.6910     (2.0000)     1.6910
GS Secondary   3.6540     (2.0000)     1.6540
GS Primary     3.6570     (2.0000)     1.6570
Municipal SL   2.6010     (0.2169)     2.3841
Private Light. 2.5090      0.2366      2.7456

Rates remain subject to PUC approval