Rate Comparison

       Citizens' Electric rates are comprised of three significant components - distribution, transmission and generation.  Distribution rates recover the expenses to expand, improve, operate and maintain the substations, poles, wires and services that are necessary to deliver energy the the meter as well as all administrative and clerical functions necessary to operate the Company.  Transmission is the delivery of energy from where it is generated to the distribution substations; transmission costs are included in the generation rates.  Generation rates recover the cost of procuring the wholesale energy products and transmission.  Generation and transmission expenses are a straight pass-through; Citizens' does not profit or "mark up" any of these expenses. Customer Choice may provide alternatives to Citizens' Electric's generation supply.

       In 2008, Citizens' implemented a new Plan to procure wholesale energy products.  The Plan, which has been approved by the PA PUC, includes a prudent mix of on and off peak, long and short term block purchases and spot market purchases.  In 2010, the PA PUC approved a modified and enhanced Plan.  Citizens' Generation Supply Service Rate (GSSR) is adjusted quarterly based on the actual cost of energy.

       In April of 2008, new distribution rates went into effect that raised rates approximately 7%.  It was 18 years since Citizens' Electric previous distribution rate increase in 1990.  The rate adjustment was necessary to recover the ever increasing cost of materials, equipment, insurances, wages and other general operating expenses. In June of 2010, Citizens filed with the PA PUC to increase distribution rates by 4.2%. The increase is presently under study by the PA PUC.

       Even after the rate adjustment, Citizens' Electric remains very competitive as an electric energy supply company.  This is evidenced in the PUC's most recent Annual Rate Comparison Report. Pages 8 and 9 of this report provide an easy to understand comparison by company of the components of your electric bill and total cost.  Citizens' distribution charges remain less than nearly every other electric energy provider in the state.  At this time, only Citizens' and a few other PA utilities are acquiring wholesale supply from the open market; the remainder are supplied under capped rates which are set to expire in 2011.