Electric Bill Breakdown
Electric Bill Breakdown
Electric Bill Breakdown
Customer Charge A monthly basic distribution charge to cover costs for billing, meter reading,
equipment, maintenance and advanced metering.
Distribution System Improvement Charge This charge recovers costs incurred to repair, improve
or replace infrastructure that the Company uses to deliver electricity to its customers.
Distribution Charge Charge for Universal Service Program and Energy EfÏciency Program costs,
and for the use of local wires, transformers, substations and other equipment used to deliver electricity
to consumers from high-voltage transmission lines.
Solar Requirements Charge Charge to acquire Solar Photovoltaic Alternative Energy Credits to
comply with the Alternative Energy Portfolio Standards Act.
Default Service Support Charge Charge to recover new and deferred costs associated with
serving customers in a competitive market.
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TCJA Voluntary Surcharge This surcharge adjusts customer rates for the reduction to corporate
federal income tax under the Tax Cuts and Jobs Act.
What is the Gross Receipts Tax and how is it factored into the Price to Compare ?
The Gross Receipts Tax (GRT) is a Pennsylvania state tax imposed on the gross receipts from sales of elec-
tric energy within Pennsylvania and is included in the PTC. The Gross Receipts Tax is paid by both the elec-
tric distribution company (EDC) and the EGS on the basis of the company’s or the supplier’s gross receipts
from the sale of generation supply within Pennsylvania. EDCs and EGSs include the GRT as part of the cost
of electric generation supply.
Is the Gross Receipts Tax part of the State Tax Adjustment Surcharge (STAS)?
The GRT is usually partially collected in the STAS and partially in the base rates, but it may depend on the
timing of any tax changes and rate cases.
My utility company has always been a good company. Why should I switch now?
Penelec does not care if you choose a competitive supplier and is encouraging its customers to shop
around. Penelec will continue to deliver your electricity, provide reliable service and respond to outage
problems. The quality, reliability, and maintenance of your electric service should not change as it is still
monitored by the Commission. You may be able to save money or take advantage of other energy prod-
ucts, such as renewable energy with a competitive supplier or you can stay with Penelec. It’s your choice.