Allentown, PA, U.S.A. — (METERING.COM) — October 17, 2008 – PPL Electric Utilities has reported that so far, more than 110,000 customers have opted to join the company’s phase-in payment option to cover the significantly higher electricity prices expected in 2010.
Customers who choose the phase-in option make advance payments monthly through the remainder of 2008 and 2009. Those payments, plus 6 percent interest paid by PPL Electric Utilities, will be used to offset a portion of their bills in 2010 and 2011.
“This option will help customers manage the higher costs that are expected when more than a decade of generation rate caps ends,” said David G. DeCampli, president of PPL Electric Utilities.
In the phase-in option, an average residential customer using 1,000 kWh a month would see increases in the range of 5 percent to 8 percent a year from 2008 to 2012, rather than a one-time increase, possibly around 36 percent, when the rate cap expires in 2010.
Customers may withdraw from the program at any time and get full credit, including interest, for their advance payments.
“If competitive suppliers are offering lower prices, customers will be able to choose another supplier and reduce their electric bills,” DeCampli said. “The electricity we are purchasing is for customers who do not have another supplier.” Participation in the phase-in program will not affect a customer’s right to shop for generation supply.
PPL Electric Utilities is a subsidiary of PPL Corporation that delivers electricity to 1.4 million customers in Pennsylvania.