Rates for Hot Water & All Electric

Discounted electric rates for hot water heat and all electric heat were eliminated in 2013

If you have a separate meter for your hot water heater it is not needed. Removing the hot water meter will automatically save you $13.25 per month.

Generally, under electric deregulation, special rate classes were eliminated beginning in 2010. At the time the move was characterized as a discontinuance of “a host of special electric rates” for Pennsylvania Public Utility Commission (PUC) jurisdictional electric utilities. The rationale was that in each special electric rate, there was a subsidy from the remaining customers.

Several years after the Pennsylvania PUC jurisdictional electric utilities eliminated special rates, including electric heat rates, Lansdale also moved in that direction to eliminate electric heat rates. The rational was to eliminate the subsidy from other Borough ratepayers. If you need to have a meter removed, please contact Electric Services at 215-368-1691.

While it is true that some municipal electric systems still maintain electric heat rates, most do not. In our professional opinion, elimination of the electric heat rate, while at the discretion of Borough Council, is consistent with Pennsylvania PUC utility trends.

Another question raised is the exemption of electric deregulation for municipal electric systems in Pennsylvania. Pennsylvania law exempts the 35 municipal electric systems from PUC jurisdiction and deregulation. This is also consistent with the law of other states.

Analogous to the municipal exemption from retail competition was last years change in law for Pennsylvania electric cooperatives. Pennsylvania HB 2234 effectively ended retail competition created by the Electricity Generation Choice for Customers of Electric Cooperatives Act, providing for its expiration on December 31, 2014. After the change in law, the electric cooperatives no longer have mandatory retail competition. Only the large PUC electric utilities have electric choice in Pennsylvania.

There are several policy reasons for the municipal exemption. Borough electric customers are already an aggregated pool for pricing. Municipal electric systems own and operate their own electric systems for the exclusive benefit of each Borough not external shareholders. Absent the profit motive, municipal electric systems provide restoration times during and after storms in the order of hours, not days or weeks as PUC electric utilities experienced in the storms of recent years.

In the self governance of municipal electric utilities, local Borough Councils employ local utility crews to maintain and operate the system. PUC electric utility crews have regional crews from miles away. Borough electric crews are based in the Borough and are available on short notice to meet the day to day needs of the system.

While Borough Council, deliberately and thoughtfully considers rate increases every several years, their PUC jurisdictional electric utilities can and do adjust rates every three months as allowed by law.