Electricity choice continues to provide lower price options for residential customers who receive their power from BGE. The creation of a competitive electricity market has created an abundance of electric rate options that give consumers an alternative to the BGE default price to compare rate. Electric bills in the BGE service area are increasingly being reduced as a result of Maryland electricity choice laws that allow consumers to shop for competitive power rates.
BGE residential customers who do not shop the electricity choice market for lower rates pay a default rate for their power supply through BGE. The default rate is determined through an auction process where competitive electricity suppliers compete for the ability to service a bundle of the default paying customers. An individual customer can take that default rate, labeled the price to compare, and search for a lower competitive electricity rate. Once selected, the competitive rate replaces the default rate on the monthly electric bill, creating savings if the competitive rate is below the BGE default rate.
BGE electricity choice rates have remained lower than the price to compare for all of 2014. This has resulted in an increase in the participating level in Maryland electricity choice. Those customers who have not taken the time to learn about electricity choice are paying more than they have to on their monthly BGE electric bills.
Residential electricity customers in the Meted service area in Pennsylvania saw their utility price to compare rate increase by twenty-five percent in the summer. This sharp price increase made room for competitive electricity suppliers in the area to offer prices that were significantly lower than the default rate, yielding double digit savings opportunities. As the summer comes to an end, those saving opportunities still exist for Meted consumers who have remained on the high Meted price to compare.
Despite the fact that competitive Pennsylvania electricity suppliers are offering rates with savings of as much as 17% versus the Meted default price, only 35.7% of residential customers in the area have selected a competitive offer. Customers who are skeptical of selecting a competitive electricity rate should know that all competitive rate plans are offered by electricity suppliers who are licensed with the Pennsylvania Public Utility Commission. In addition, even after the switch is made, customers will continue to receive their electric bill from Meted. Instead of being charged the current Meted default rate of $0.09725, the competitive rate would be charged instead, allowing the customer to save whatever difference is yielded.
Current competitive offers in Meted from electricity suppliers licensed by the state of Pennsylvania can be found below. All rate plans are updated in real time.
After enjoying record level low electricity prices for the past year and a half, residential customers serviced by Commonwealth Edison (ComEd) are facing a huge electric rate hike that went into effect on June 1, 2014. For some consumers the rate hike is more than 50% as the ComEd default rate has jumped from below 5 cents to, in some cases, just above 8 cents. The price hike will effect all residential ComEd consumers who are on the “Price to Compare” rate structure, which is the price consumers pay for generation and transmission service who have not shopped for an alternative solution.
The large price increase by ComEd has resurrected competitive electricity rate offers that can produce savings. During the last year and a half, Illinois electricity suppliers found it difficult to offer rate plans that could show savings versus the ComEd price to compare. Instead they focused on promotional incentives and longer term price protection contracts in order to gain new customers. With high ComEd rates accompanied by low wholesale prices, ComEd energy choice can once again provide fixed electric rates that are lower than the default prices and thus offer clean cut savings on the ComEd electric bill.
Finding a low electricity rate offered by a electricity supplier who is licensed by the Illinois Commerce Commission can result in lower monthly ComEd electric bills.
CL&P has posted a rate increase for their residential customers for the generations portion of their electric bill. The rate increase will take effect on July 1, 2014 and remain in tact through the end of the year. Connecticut Light and Power is the state’s largest electric utility providing power to more than 1.2 million customers. Electricity customers in Connecticut, through the Connecticut Energy Choice Act, have the ability to shop for competitive electric rates from alternative suppliers who are licensed by the Connecticut Public Utilities Regulatory Authority.
In 2013, 43% of customers who receive their power from CL&P elected to purchase their power supply form a competitive electricity company. Due to low CL&P default rates, the number of participating electricity shoppers has steadily declined since 2012 reaching its current number at 39.9%. During this time it was difficult for competitive electricity companies to offer rates that were below the default price for electricity. When shopping for the lowest CL&P electricity prices, customers are encouraged to find a fixed rate below the default rate in order to ensure savings on their electric bill. With the CL&P default rate being the lowest fixed rate available during large stretches in 2012 and 2013 many consumers chose to go back onto default service instead of renewing their competitive plan.
Electricity shopping activity is expected to regain its growth due to the CL&P rate increase that will be taking place during the second half of 2014. Residential customers who are on the CL&P default rate will see the price they pay for generation service rise from $0.09235 to $0.0999 per KWH, which equates to a 8.2% increase. The rate increase also comes at a time when competitive electricity companies are seeing wholesale prices stabilize, allowing them to offer competitive electric rates below the default prices.
Below are competitive Connecticut electricity rates offered to CL&P customers. If the fixed rates are below the CL&P default rate the customer will save money on their monthly CL&P electric bill.