Thursday, March 11, 2010

PA Gross Receipts tax in savings comparisons of electrical suppliers.

Let's try to explain where the PA Gross Receipts Tax fits into the comparison of Glacial Energy rates and PPL rates.  Believe me, it's IN there.

Open the PDF document stored HERE and follow my calculations.

First off, the 2010 PPL bills for a person who has not chosen an alternative supplies are actually a bit simpler than in the past.   You will see the Generation Charge (for a GS3 rate) are showing all kwh charges at 10.125 cents/kwh.  

The handwritten calculation at the left shows the total charges for Tranamission and Generation to add up to $15,589.68 for this customer, who had a usage of 15,281 kwh in the month.   That yields a total rate of $.10483 (10.4= cents) / kwh.   The paragraph on page 2 shows that this INCLUDES the gross recipeits and other taxes.

Page 3 shows the bill for a Glacial Energy customer for roughly the same period.   Calculating the $/kwh with Gross Receipts tax added in  shows $.08873/kwh (8.873 cents).

By calculation, this is a net savings of $.016/kwh, or 14.8% for the month of February.  ($.016/$.10483 = .148 or 14.8%) 

That savings percentage is predicted to improve during the spring months, as we have discussed.

If you would like to discuss this analysis, or have other questions, please don't hesitate to call me at 570-401-4843.

Thanks,  and have a GREAT week!


Jeff Kurtz – Business Development Manager
Jeff.Kurtz@GlacialEnergy.com
717-620-9676 office       570-401-4843 cell phone
Fax the Graph and the Billing pages of your recent PPL bill to: fax - 570-647-4053or  717-370-5325 for analysis.

·  GREEN energy options are available

Glacial Energy of Pennsylvania, 1000 Liberty Avenue, Pittsburgh, PA 15222

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