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pa_bourbon t1_jdb5thy wrote

Reply to comment by [deleted] in PA PUC is still investigating PPL's billing practices by StupiderIdjit

Electric rates spiked dramatically in the last year. PA generates a lot of electricity with natural gas. Natural gas prices spiked due to the war in Ukraine. It’s a global market.

Natural gas has plunged recently. A downward adjustment is coming. If you have your distribution utility as your supplier, by PUC regulation they make no money on the commodity. It’s a straight pass thru at the cost they pay the generator.

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[deleted] t1_jdc8sva wrote

[deleted]

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pa_bourbon t1_jdc9p1p wrote

That’s not how power works. You really don’t know where your electricity is generated.

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[deleted] t1_jdccphn wrote

[deleted]

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pa_bourbon t1_jdcfbsb wrote

That’s not how they price the commodity though. It’s a bundle price based on the average of all sources of generation that are purchased by a given distribution company.

You don’t consciously choose the plant that generates your power. The distribution utility buys from one to many sources to keep the grid fed with power based on demand. Plants like nuclear power plants provide the stable base load in most cases. Some gas and even coal plants do the same in some areas. More gas and coal plants are fired up as “peaking plants” as demand rises and falls throughout the day.

The price you pay is based on the average of all sources used by your distribution company and is regulated by the PUC. The distribution company makes no money on the electricity it purchases by PUC regulation. It’s a straight pass through. The monthly flat rate customer charge and the other distribution charges on the bill cover their costs and generate their profit. The profit is also regulated by the PUC as part of the rate making process.

The only way to sort of get close to picking your generating source is to buy from a “green” supplier. But even many of these turn out to be scams.

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