The PA Public Utility Commission posted the results for the fifth power purchase that PPL has made for its price to compare or default customers. The new rates will go into effect on January 1, 2011. One more auction remains before the final rates are established.
PPL now has secured about 80 percent of its power supply from a total of 16 companies for the first five months of 2011. PPL said that with the continuing trend of lower market prices for power, it would likely be passing along a lower rate for its generation service to residential and small business customers compared to the current price to compare rates of 2o10. However, even with lower default rates expected in 2011, even greater savings are available for customer who decide to shop for competitive rates.
Just over 30% of all electric customers in the PPL territory have switched off of default service, that number is expected to rise as people become more educated on deregulation. Savings for residential electric customers average between 10-15% off of current 2010 default rates. Medium size businesses can save as much as 30% if they take the time to shop for the best power rates.
The heat wave that was present in the Northeast and Mid-Atlantic last week caused a spike in electricity demand which in return increased hourly prices in the electric wholesale market. Weather is the key variable for electricity demand. Warmer than average weather causes an increase in demand as people turn their air conditioning down, forcing reliability concerns as wires and transformers overheat.
Customers on variable rates in the Northeast and Mid-Atlantic might see an increase on their next bill. Larger commercial customers who are on an electricity contract tied directly to the PJM wholesale market will almost certainly see a significant increase on their rate from the last few months. Residential and small commercial electric customers on a variable rate will see an increase depending on how much of the daily market their provider depends on. Those providers who rely on the daily market for their entire customer base will be in a lot of trouble as they will be forced to pass the electric rate spikes right onto their customers.
There are currently savings for Connecticut electricity customers who are serviced by the utility the United Illuminating Company (UI). Both residential and business customers are finding savings by shopping the competitive electric market.
Residential electric customers in the UI service area are paying a default rate of 11.568 cents per kilowatt hour. The lowest electric rate in the UI utility area that we found was for 9.6 cents per kilowatt hour, a 12% savings. Similarly, a 9.6 cents electric rate was found for small business customers in Connecticut compared to the UI default rate of 11.5918, 1 7.3 percent savings.
Electric savings are real in Connecticut. If you have not looked into competitive power prices we strongly encourage you to do so. There is no reason to pay 12-20% more a month on your electric bills when you can easily save money by signing an electric contract with a reputable electric supplier.
For a list of electric suppliers in your area send us an email with your state and local utility company.
We are also seing electric rate savings in the following utility service areas: PSEG, ACE, JCPL, CPL, PPL, BGE, Delmarva, all of Texas
Texas residential customers who have had their contracts expire could be paying too much on their monthly bills. Nearly every competitive electric provider who offers term contracts has a clause built in that causes customers to stay with the provider after the contract has expired at rates determined by the supplier. The business strategy for the electric providers is that a large enough percentage of their market share will forget to sign a new contract allowing them to up the rates to a premium.
Two summers ago, electric rates in Texas for twice as high as they are today due to higher natural gas prices. Customers who signed fixed electric rate contracts during that time became customed to paying a high electric rate. As these contracts expire, providers continue to charge the high rates hoping that their customers have forgotten that they can now shop for a lower rate.
If it has been awhile since you shopped the electricity competitive market we encourage you to see if your contract has expired. Just because you are still receiving a bill from an electric provider you chose last year does not mean that you are still on contract.
For the lowest Texas residential electric rates today, email us with your city name and ask for rates. As of this week, fixed rates have been found below $0.09 per kwh. Many Reliant and TXU customers are paying over $0.15 per kwh.