With the recent announcement by PSEG that they will be raising their basic generation service rates for their residential and small business customers, many consumers are starting to search for the best alternative to PSEG. Through New Jersey energy choice laws, all PSEG customers have the option to shop the competitive electricity market for an alternative electricity supplier. While these companies are alternatives to PSEG, the quality of the power is the exact same as the power continues to be delivered though the same power lines and wires.
New Jersey has set up a fairly simply electricity choice market where utilities such as PSEG continue to deliver power to their customer base no matter who the customer chooses to supply the power. The alternative electricity companies offer rates to customers that represent the electricity generation and transmission portion of the electric bill. PSEG and the other three major New Jersey utilities receive revenues through the distribution charge on the electric bill which remains regulated by the New Jersey Board of Public Utilities.
The best alternative companies to PSEG are those that offer a fixed electric rate that is lower than the basic generation service charge. If a customer does not choose an alternative supplier they pay the basic generation service charge for power supply which is the PSEG default rate. Finding an electricity supplier that offers a rate lower than the default rate will result in a lower PSEG electric bill. However, it is also important that the rate is fixed for at least several months, otherwise the electricity supplier will likely increase the rate after the initial month.
Pennsylvania Power and Light customers are once again taking advantage of energy choice laws to save money on their electric bills. When the PPL service are first became truly competitive in 2010 many customers found that they could lower their PPL electric bill by shopping for competitive electricity rates. In the last several years the growth in the number of customers buying power from competitive electricity suppliers leveled off as the difference between the lowest competitive electric rates and the PPL price to compare default rate got closer to parity. With that gap now widening again, residential customers in the PPL service area once again have the ability to save on energy expenses by participating in energy choice.
Electricity choice in Pennsylvania allows customers the ability to save on their energy bills if they are able to find a competitive electricity offer that is lower than their utility default rate. Currently in the PPL service area the lowest competitive rates are showing savings above ten percent versus the price to compare default rate. Though there are many energy savings products available that provide ways to save on energy through energy efficiency consumption, the easiest way to save on energy bills is to purchase low cost electricity. It takes less than five minutes to compare, choose, and enroll in a competitive electricity plan like the ones below, all of which are approved by the Pennsylvania Public Utility Commission.
Residential electricity customers who receive their power from AEP Ohio Power are receiving attractive price options from competitive suppliers as the summer approaches. Due to a recent widening gap between the Ohio Power generation default rate and competitive electric rates in the area, customers can save more than 20% off of their monthly electric bills by choosing a rate plan offered by a competitive supplier. The savings potential has increased shopping activity in the AEP Ohio Power service area market.
Through Ohio electricity choice customers have the ability to shop for competitive generation and transmission rates from alternative suppliers while still receiving the power and monthly electric bill through their local utility such as AEP Ohio Power. AEP Ohio Power continues to deliver power to their customers and charges a regulated delivery charge for this service. The deliver charge is regulated by the Public Utilities Commission of Ohio and does not change based on whether a customer chooses a competitive supplier or not. Customers who do not choose a competitive electricity plan pay a default rate for generation and transmission service offered by AEP Ohio Power.
The AEP Ohio Power default rate has recently risen to $0.0907 cents at the same time competitive rates are being offered in the $0.065 to $0.08 range. This gives consumers who are still on the default rate an opportunity to save as much as 28.5% on their electric bills as we approach the high electricity usage summer months. This is the first time that Ohio Power residential customers have been able to save over 20% through Ohio electricity choice. The high savings amounts will likely encourage customers who had previously not paid attention to competitive rates to finally shop the market.
Below is a list of current AEP Ohio Power residential rates, all of which have been approved by the Public Utilities Commission of Ohio. If you are a AEP Columbus Southern customer please visit our AEP Columbus rate page.
Electricity customers in New York City are looking for lower rates after a Con Edison rate hike that took effect in February. NY City consumers who receive their electric bill from Con Edison, and who are not currently on a competitive electricity rate plan, will see their rate jump to an average of $0.1637 cents per KWh on their March bills for the service month of February. The high Con Edison rate is 60% higher than the lowest Con Edison electricity rate offered through New York electricity choice laws. By entering into an electricity contract with a competitive energy supplier a customer can replace the high default rate with the rate being offered by their chosen supplier.
Con Edison offers a default variable rate for electricity supply for their customers who do not shop the energy choice market. The variable rate leaves customers at the discretion of the market which can bring about big surprises from month to month. In contrast, locking in a low fixed electricity rate gives the same consumer stability in their electric bill amounts. The customer who locks in a fixed rate for 12 months or more may not save money versus the Con Edison variable rate very single month, however they will at least know what to expect and not be thrown any surprises that can effect their overall budgets.
With the implementation of New York electricity choice, Con Edison’s main role is to deliver power to homes and businesses through the regulated lines and wires. When purchasing power for their default paying customers, they simply buy what is available on the wholesale market; they are not looking out for their customers best interest as this is not their responsibility. This strategy can often lead to customers paying much more for electricity than they should, as will be the case for thousands of NY City consumers on their March electric bills.
NY City electricity customers who have not yet selected a electricity rate from a competitive supplier should do so immediately in order to protect themselves from high variable electric rates that can hit at any given month. All rates offered below are from suppliers who are regulated by the New York State Public Service Commission.