CHANGES IN LAW = INCREASES ON YOUR ELECTRIC UTILITY BILL
Columbia, MD
10/15/2018 04:46 PM

CHANGES IN LAW = INCREASES ON YOUR ELECTRIC UTILITY BILL

Increases to Date: You may have noticed on your recent supply agreement bills there have been fee or rate adjustments. The reason is based on “Changes in Law” which apply to all customers consuming electricity from a third-party supplier or the utility. Everyone is impacted including customers who have remained with the utility on the Standard Offer Service Rate. These increases are permitted by the Interconnection Grid Management Company (PJM) and the Federal Energy Regulatory Commission. The increases to date, could increase your contract rate by approximately 1.6% (up to $0.0010 per kWh).

Increase Effective October 2018: Due to a recent settlement of a long-standing law suit over unrecovered transmission enhancement investment and improvement costs, a new increase will go into effect, as of the October meter read date. On May 31, 2018 the Federal Energy Regulatory Commission issued TEAC 494 Order which will increase your contract rate by between 6% ($0.0025 per kWh) and 18% ($0.0075 per kWh), for the balance of the term of the Agreement.

These increases are based on changes in regulatory law and fees which are not in CQI Associates’ or your supplier’s control.

FREQUENTLY ASKED QUESTIONS

How will I be notified of the change? If you have an increase on your bill, you should have received a notice by email or mail from your supplier. Agreements signed over the past two years may have specified what cost increases are permitted and could have an impact on which increases apply. 

Why are there additional line item costs on my recent utility bill? Multiple price increases in 2018 change the fees charged for “Energy Supply Services”. The items impacted are due to changes in Capacity, Transmission, Network Integration, Balancing, and Peak Load Contribution regulations and fees. Similar changes have been ongoing for “delivery services” regulated by the state energy commissions.

How much of my bill are fees vs. actual electricity supply?  Fees today account for over 50% of the supply costs. In 2004 fees were 20% of the supply cost. 

What should I do? CQI recommends you review your current bill to determine which increases have been added.  We recommend monitoring your bills for the next few months to assess the impact, especially as a result of the October increase. 

How can CQI help you? If you have any questions or concerns following your review of the recent invoices, send an email to Melissa Anderson at melissa@cqiassociates.com with a scanned copy of your current bill (send all pages) for a review and assessment per your current supplier Agreement.

Reference
Melissa Anderson
 
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