WELLSBORO - Wellsboro Electric Co. customers will see a decrease in their electric bills beginning this month, said Jeff Fetzer, vice president of communications.
The Pennsylvania Public Utility Commission approved a request by Wellsboro Electric to decrease its generation supply service rate by 6.5 percent for the first quarter of 2013.
The new generation rate of 6.8344 cents per kilowatt-hour reflects a decrease of .475 cents per kWh when compared with the fourth-quarter 2012 generation charge of 7.3094 cents per kWh.
The new rate will be reflected on all bills rendered Jan. 1 through March 31, 2013.
As a result of the rate adjustment, the total monthly bill of a residential customer using 500 kWh of electricity will decrease by $2.38, or 3.66 percent, from $64.98 to $62.60. The total bill includes generation and distribution charges, as well as state taxes.
Fetzer said the quarterly filing is required by state law.
"We have a quarterly filing and the generation charges are based on the price of power we have to purchase," he said.
Pennsylvania law requires electric utilities to separate electric service on customer bills into two components: generation and distribution. Distribution rates pay for costs associated with owning and maintaining the local wires and other equipment used to deliver electricity to customers.
The generation supply service rate, also known as the energy charge, covers the utility?s costs associated with purchasing power for its customers.
"We get billed an amount and we pay it," he added.
The generation rate is a straight pass-through charge; Wellsboro Electric is not permitted to make a profit on it.
Wellsboro Electric Co., 33 Austin St., delivers electric service to more than 6,200 customers in the borough and Charleston, Middlebury and Delmar townships in Tioga County.