Frequently asked questions about Allegheny Power’s Rate Petition in Pennsylvania

What are the benefits to Allegheny Power customers?

We believe this is a win-win situation--the extension of rate caps, coupled with this series of modest increases, will provide customer rate protection and a smooth transition to competitive market-based rates. Even with the generation rate increases included in this agreement, residential customers will be paying less for electricity in 2010 (9.09 cents per kilowatt-hour) than today's state average rate of 9.65 cents per kilowatt-hour. In addition, Allegheny's Pennsylvania customers will pay $25 million less in stranded cost payments because the Company will be allowed to securitize the stranded costs that have yet to be recovered through the Competitive Transition Charge.

Haven't rates been going up steadily?

Allegheny Power's rates have not increased in the past decade and are among the lowest in Pennsylvania. Allegheny Power's customers are paying about the same for electricity now as they did in 1994. However, since the beginning of Electric Choice in 1999, the market price for electric generation has risen, but customers have been insulated from those changes with the rate caps.

What part of my bill is changing?

The agreement specifies changes in the rate caps for generation portion of your bill. With Electric Choice, you can choose the company that generates or supplies your electricity. Customer choice allows you to shop among various electricity suppliers to find out what products and services they offer and compare their prices with Allegheny Power's Price to Compare. For a list of suppliers offering service to Allegheny Power's customers, click here.

Why did you ask for a series of rate changes?

Allegheny's rates are significantly below market rates. By extending the rate caps with pre-defined increases, consumers will move gradually toward paying market-based generation rates and be protected from significant one-time rate increases as we are starting to see in neighboring states. This plan provides an additional two years of rate certainty for consumers, who do not shop for electricity, through generation rates that are expected to be below market prices in 2010.

What are the rate changes?
For a summary of the proposed rate changes, click here.

What are my options?
Consumers still have the ability to shop for an alternate generation supplier. The new Allegheny Power generation rates will be for those customers who do not shop for electricity. For more information on shopping, click here.