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The Reality of Expiring Electric Rate Caps in PA

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800.238.6753 Presentation For The HRS/TND SEMINAR. The Reality of Expiring Electric Rate Caps in PA. Dedicated to Producing Tangible Savings for Our Clients. Who is UtiliTech? Founded in 1991 - Private Company, Headquartered in SE PA

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the reality of expiring electric rate caps in pa

Presentation For The


The Reality of Expiring Electric Rate Caps in PA

dedicated to producing tangible savings for our clients
Dedicated to Producing Tangible Savings for Our Clients

Who is UtiliTech?

  • Founded in 1991 - Private Company, Headquartered in SE PA
  • Our primary mission is to produce tangible cost management and savings for our clients by employing systematic review, analysis & energy procurement strategies in deregulated states

What does UtiliTech do?

  • Energy Procurement, Supply & Management Services
  • Bill Audit Services – Gas, Electric, and Telecom
    • Unbiased & Independent Analysis
    • Utilize proprietary database of rates and tariffs to find savings
    • Implement and validate anticipated savings with suppliers
  • Manufacturing tax Audits
  • Energy, Telecom, and IT Management Consulting

UtiliTech is your Advocate!

delivering results for a diverse and esteemed client roster
Delivering Results For A Diverse And Esteemed Client Roster

Just a few of our many satisfied clients…


Financial Services





customer impact
Customer Impact

Electricity Deregulated in PA in 1996

  • Generation, Distribution, Transition, Transmission, etc. broken out
  • Generation is only portion open to competition
  • Bill explodes from 1 page to 4 or more
  • Pilot Program begins
  • After Pilot Program
customer impact1
Customer Impact

Electricity Deregulated in PA in 1996

  • Rate caps for generation costs established
  • Expiration dates set by PUC
    • Allegheny = 12/31/2010 (700,000)
    • Duquesne = 03/1/2002 (600,000)
    • Met-Ed (FE) = 12/31/2010 (500,000)
    • PECO = 12/31/2010 (1,500,000)
    • Penelec = 12/31/2010 (600,000)
    • PPL = 12/31/2009 (1,400,000)
customer impact2
Customer Impact

Impact of PPL Rate Caps Expiring

  • Generation Rate Caps Expire December 31, 2009
    • Will result in total bill cost increases for the majority of customers
  • Increase will vary by rate class and rate structure
    • Residential
      • from approx. 34% to 78%
    • Small Commercial/Industrial (GS1, GS3, GH1, GH2)
      • from approx. -2% to 125%
    • Large Commercial/Industrial (LP4, LP5, LP6)
      • from approx. 32% to 96%
customer impact3
Customer Impact

Why Rates Will Change

  • Customers will see REAL cost of generation
  • Individual impacts will vary by customer
  • Revised tariffs will have large effect on some rates
    • Eliminating the demand portion of the generation charge
    • Declining block energy of the generation charge will terminate
    • Eliminating Time of Day; demand charges will be based on the highest kW during all hours in the bill period in Distribution and Transmission.
    • Eliminating EDI/IDI credits
likely concerns of ppl customers
Likely Concerns of PPL Customers

What are the specific concerns today?

  • Electric cost containment and management due to de-regulation and volatile market costs
  • Alternate supplier options
  • Relationship between alternate suppliers and local utility companies
  • Knowledge and understanding of multiple pricing options
  • Budget certainty
  • Fear, Uncertainty and Doubt about current and future energy markets!
customer options
Customer Options

What Can You Do???

  • Nothing – wait for PPL to establish new tariff rates
  • Purchase generation from deregulated supplier
    • Month-To-Month
    • One year agreement
    • Two year agreement
    • Three year agreement
    • Full Load
    • Partial Load
customer options1
Customer Options

What Can You Do???

Review ALL Energy Conservation Projects

  • Lighting Retrofits
  • New Technology for Equipment Replacement
  • Automation and Control Systems
  • Motion Detectors
  • Solar Panels
procurement process
Procurement Process

What Needs To Be Done

Phase 1 - Procurement

  • Evaluate and define energy usage and demand data from energy bills.
  • Evaluate current contracts with existing energy suppliers.
  • Develop goals for energy cost and risk management.
  • Request proposals from qualified energy suppliers.
  • Evaluate proposals.
  • Negotiate contract pricing and terms with selected supplier(s).
  • Manage contract execution.
procurement process1
Procurement Process

What Needs To Be Done

Phase 2 – Bill and Contract Management

  • Examine and analyze bills compared to the contracts on an as needed, on-going basis during the term of this Agreement.
  • Monitor energy consumption patterns for significant changes.
  • Review supplier price performance compared to utility price-to-compare or other appropriate benchmark.
  • Monitor contracts relative to expiration and proactively engage the suppliers to ensure continued optimal results.
consultant or do it yourself
Consultant or do it yourself?

Why Work with a Consultant for Electric Procurement?

You have a business to run

Pricing competition    

Knowing the utilities and commodity markets

Market timing

Contract review

Follow up process after contract implementation

Several billing options from consultant

Q & A


proven results
Proven Results

To date UtiliTech has:

  • Performed energy procurement, utility, and telecom audit
  • Provided services for more than 2,500 clients across the US since 1991
  • In 2008, UtiliTech managed over $325,000,000 in

energy procurement costs

  • Our audits have identified over $80,000,000 in refunds and savings opportunities
  • Energy procurement and audit services are provided at no cost to the customer!
mastery of the energy markets
Mastery of the Energy Markets

A Team With Extensive Experience

  • More than 80 years of energy industry knowledge on staff
  • 40 plus years of experience in energy deregulation and procurement
  • Full-time energy market price monitoring and analysis
  • Understanding tariffs & regulatory implications
  • Extensive experience with energy supplier contract language and pricing options
  • Extensive experience with all types of business, non-profits, government agencies and education institutions
  • Proven ability to deliver bottom line results!