Industrial and Commercial Rates —2008 Update

All PPL Electric Utility nonresidential customers are on some version of a demand rate.

Demand – What is it?

Businesses have electric meters that measure both demand for electricity in kilowatts (KW) and electricity use in kilowatt-hours (KWH). Demand is the amount of electricity your business requires at a given moment. All business customers have a demand component of their electric bill. The demand charge is based on your peak demand as measured over a 15-minute period. For our general service rates, demand charges make up 20 percent to 40 percent of a typical monthly bill. (Click here for more information on ways to save on demand charges.)

What is a kilowatt-hour?

A kilowatt-hour is a measure of electricity use equal to 1,000 watts used for one hour. The electric meter measures how many kilowatt-hours you use. Electricity use is one component of your electric bill.

What rates are available?

GS-1 – This rate schedule is for single-phase service at secondary voltage (208, 240 and 480 volts ). For all nonresidential accounts activated after Jan. 1, 2008, the rate will be determined strictly by the service type. New customers receiving single-phase service will be served under Rate Schedule GS-1. Please see Rate Schedule GS-1 for a complete description of the rate application. For estimated calculations, use $2.19 per kilowatt demand and $0.11/kilowatt-hour usage (does not include 6 percent sales tax). The exact charges for these rates are here. A calculation form is available for printing here.

GS-3 – This rate schedule is for three-phase service at secondary voltage (208, 240 and 480 volts ). For all nonresidential accounts activated after Jan. 1, 2008, the rate will be determined strictly by the service type. New customers receiving three-phase service will be served under Rate Schedule GS-3. For estimated calculations, use $8.87 per kilowatt demand and $0.06/kilowatt-hour usage (does not include 6 percent sales tax). The exact charges for these rates are here. A calculation form is available for printing here.

LP-4 – Requires electric service supplied from available lines of 12,000 volts to 69,000 volts or higher where the customer furnishes and maintains all equipment necessary to transform the energy from line voltage. The exact charges for these rates are here. A calculation form is available here.

LP-5 – Requires electric service supplied from available lines of 69,000 volts or higher. The customer furnishes and maintains all equipment necessary to transform the energy from the line voltage. It applies to three-phase, 60-hertz service. The exact charges for these rates are here. A calculation form is available here.

LP-6 – Rate LP-6 has a demand charge minimum of 10,000 kilowatts and requires electric service supplied from available lines of 69,000 volts or higher. The customer furnishes and maintains all equipment necessary to transform the energy from the line voltage. The exact charges for these rates are here. A calculation form is available for printing here.

Special rates

PPL Electric Utilities no longer offers special rates, such as all-electric or time-of-use. Existing customers are able to stay on these rates as long as the accounts remain active and the customers continue to satisfy the rate application provisions. These grandfathered rates are: interruptible rates IS-P and IS-T; heating rates
G1-C, G3-C, GH-1 and GH-2; economic/industrial development riders EDI and IDI; and all time-of-day options.

Are you on the best rate?

If you are on one of the grandfathered rates mentioned above, you’re probably on the best rate. If you’re on rate LP-4 or LP-5, you’re on the best rate unless your electricity use decreases to a minimal level because of a facility closure or some other reason. In which case, you should call Industrial and Commercial Services at 1-888-220-9991 to discuss your options.

The GS-1 and GS-3 rate schedules are for general service use at secondary voltage. GS-1 is billed on a minimum demand of 5 kilowatts and is for single-phase service. GS-3 is billed on a minimum demand of 25 kilowatts and is for three-phase service.

For customers receiving electric service as of Dec. 31, 2007, to determine the best rate for your business, Click here to view Cross-Over Graph. Find your monthly demand and electricity use on your electric bill. A demand graph is on page 1 of the bill under the Electric Use section. Electric consumption (in kilowatt-hours) is listed on page 3 under General Information/KWH Use By Meter. Customers with a special time-of-day rate option should use their on-peak demand.
To use the cross-over graph, find the point of intersection of your demand (kilowatts) and consumption (KWH) for a single month bill. Determine if that point lies in the GS-1 or GS-3 area of the graph to decide what rate would be lower cost for that month. If the cross-over graph consistently indicates that you’re not on the better rate, call ICS at 1-888-220-9991 to discuss your options. Keep in mind that if you request a different rate, PPL Electric Utilities will require you to remain on that rate for 12 months.

Explanation of rate components

Your electric bill includes various charges: Distribution, Transmission, Energy and Capacity, Competitive Transition Charge, and Intangible Transition Charge. The Rate Schedule provides information concerning the components of the rate and the related charges for each component of the rate for each year through 2009. Components will vary from year to year, but certain combinations of the components are subject to caps established in the Customer Choice Act and PPL’s Restructuring Settlement.

Outlined below is a brief description of the charges that appear on your bill.

• Distribution and Transmission Charges – The transmission charge is the charge for moving electricity from a generating plant to the PPL Electric Utilities distribution system. The distribution charge is the charge for delivering electricity over the local wires, transformers, substations and other equipment to your business.
  
• Energy and Capacity Charge – The charge associated with electric generation supply provided by PPL Electric Utilities under its Provider of Last Resort Service. If you buy energy from a competitive supplier, the supplier — not PPL — will charge you for this component of the bill. Consistent with PPL’s Restructuring Settlement, the Energy and Capacity Charge for customers who purchase generation service from PPL is capped through 2009.
  
• Competitive Transition Charge – The charges for this component of the rate are detailed in the rate schedule through 2009. Transition charges are costs associated with electric utilities transitioning from a regulated to a competitive electricity market. The charges vary from year to year. The amount of transition costs that can be collected from customers and the rate at which they can be collected are approved by the Pennsylvania Public Utility Commission. The Competitive Transition Charge is subject to a cap through 2009.
  
• Intangible Transition Charge – These charges also are detailed in the rate schedule through 2009. PPL Electric Utilities is collecting this charge as agent for PPL Transition Bond Company LLC, which uses these funds to service debt incurred to recover stranded costs not recovered through the Competitive Transition Charge. The charges vary from year to year, and those charges and the amount, financed through transition bonds, is approved by the Pennsylvania Public Utility Commission. The Intangible Transition Charge is subject to a cap through 2009.
  If you have any further questions or concerns regarding rates for business customers, please contact Industrial and Commercial Services at 1-888-220-9991.
  Some of the statements on this Web site paraphrase the contents of PPL Electric Utilities’ tariff. Tariff-Electric Pa. PUC No. 201, which has been approved by the Public Utility Commission, is the official document that describes provisions of all PPL Electric Utilities retail rules and rate schedules. You can access PPL Electric’s retail tariff by clicking here. If there is any inconsistency between the tariff and the content of articles posted on the PPL PowerLink Web site, provisions of the tariff prevail.