Energy Update - May 2022

What is a Utility PTC? 
Many utility companies provide a PTC, or a Price to Compare their default energy supply rates to alternate suppliers for their customers. Simply stated, the PTC is a way for customers to compare prices. Ideally, this information is used to help businesses lock in energy contracts during the opportune time, but only allows for a few months of expense planning. 
Overview of a few states and their announced increases: 

•    Pennsylvania - Winning prices from the April 2022 default service electricity supply procurement for the FirstEnergy Pennsylvania EDCs have nearly doubled from winning prices in January 2022 auction.
•    PECO: $.07699/kWh, up from $.06816, June 1 – AUG 31
•    PPL: $.11695/kWh, up from $.09675, June 1 - NOV 30
•    Met Ed: $.10625/kWh, up from $.07482, 42% increase, June 1 – AUG 31
•    Penelec: $.11056/kWh, up from $.08031 per kWh, 38% increase, June 1 – AUG 31
•    Penn Power, $0.12533/kWh, up from $.10002 per kWh, 25% increase, June 1 – AUG 31
•    West Penn Power, $0.10115/kWh, up from $.06542, 55% increase, June 1 – AUG 31
•    Rhode Island – National Grid warning residential customers to prepare for rates to double by October to over $.15/kWh, the highest price on record. New England gets roughly 1/3rd of its winter natural gas from LNG.
•    For Nstar East Small C&I customers, the fixed July 1, 2022, to December 31, 2022 basic service rate as filed is 17.827 cents per kWh, which is 21% higher than the current rate of 14.761 cents per kWh
•    Commonwealth Edison electricity prices to compare for residential and small commercial customers will increase 41% on June 1
•    In New England, wholesale power costs soared 83%, to $137/MWh, in the first three months this year compared with $75/MWh in the same period last year, ISO New England’s market monitor said last week.
•    Forward electricity prices for June through September in the California, New England and Texas markets are up 77% to 223% from last year’s settled prices, according to FERC staff.
•    Connecticut – United Illuminating GS Standard Service rate will increase about 8% to
$.106607/kWh from the current rate of $.099109/kWh, effective July 1 – December 1.
•    Illinois – MISO capacity rates jumped nearly fiftyfold after multiple coal plant operators announced early closures.  Midwest sub-region cleared at $236.66/MWd vs. $2.88/MWd in the South region.
•    Ohio - The Public Utilities Commission of Ohio approved results from an April procurement of Standard Service Offer supplies at Dayton Power & Light (AES Ohio). The SSO auction procured 50 tranches of supply for the period June 1, 2022, to May 31, 2023 at a tranche-weighted average price of winning bids of $122.50 per MWh. For comparison, a March auction for the same period had winning bids of $75.13 per MWh.