Allegheny Power has completed their auction purchases to serve customers in 2011.  These past six auctions will provide 80-90 percent of the customer’s needs depending on their rate class.  The remainder of the energy will be purchased in the spot market over the next year.  Allegheny Power has published their “Price To Compare”, or “PTC”, for residential and non-residential customers. The “Price To Compare” is what customers will pay the utility for generation and transmission service beginning   January 1, 2011. Examples of the price to compare are shown below:

		2011 AVG PTC
Residential (schedule 10)		7.05 cents/ kWh
Small non-residential (sch 20)		6.83 cents/ kWh
Medium non-residential (sch 30)		6.78 cents/ kWh
Large non-residential   (sch 40)**		6.96 cents/ kWh

**Only for those that choose a fixed price option.  Others receive a spot market price.

In addition to the PTC, customers will also pay distribution costs (the cost to deliver electricity to the customer). The PTC typically accounts for two-thirds of the utility bill with the remaining one-third distribution costs going to Allegheny Power.  More importantly, Schedule 30 & 40 customers with peak demands over 500 kW will only be eligible to receive a fixed price if they notified Allegheny Power and chose that option earlier in the year.  Otherwise these larger customers will pay a variable price based on the actual hourly price of wholesale electricity.

Customers are free to purchase their generation and transmission from a licensed third party supplier. KEYTEX Energy assists customers in finding the most beneficial combination of price and contract terms to minimize the impact of the expiration of rate caps. In most cases, KEYTEX customers are able to receive fixed pricing well below these PTC’s, with contract terms as long as three years.

Contact a KEYTEX Energy representative at (724) 468-6500 to discuss your options.