Switching to an alternative electricity supplier is proving to be a smart move for residential customers of Eversource Energy in Connecticut, formerly named Connecticut Light & Power. In January Eversource Energy raised their generation service rate for their residential pool of customers by 16%, an increase that consumers will start to notice when their February electric bills arrive. The generation service rate is the default price for electricity generation supply that Eversource Energy charges their customers who do not switch to a competitive electricity supplier. The new generation service rate, which went into effect on January 1, 2015, went up to $0.09555 from the previous rate of $0.08228 that had been in effect since July 1, 2015.
Competitive Connecticut electricity prices are coming in below the Eversource Energy basic service rate, resulting in opportunities for consumers to save money. Switching electricity suppliers causes the competitive supplier’s rate for electricity to replace the default generation service rate. Switching electricity suppliers in Connecticut does not affect the quality of the power that the customer receives. Even though customers can switch away from Eversource Energy for their electricity generation, they are unable to leave Eversource Energy as their utility, or power delivery, company.
Taking the time to switch Connecticut electricity suppliers is an easy process that can result in large savings. The actual electric switch process is seamless as no maintenance people need to come to the home to enact the change. Everything involved in the switch process happens through computers without any interruption in power service. Compare competitive offers to the Connecticut Eversource default price below from suppliers who are licensed to sell electricity in the state of Connecticut.
Residential electricity customers who receive their electric bill from Met-Ed in Pennsylvania have the opportunity to save money on their energy costs by shopping for lower electricity prices. With all of the fancy energy savings products available – including LED lights, better insulation materials, and solar panels – the easiest way to lower the Met-Ed electric bill remains the simply action of comparing electricity rate offers from competitive electricity suppliers.
Met-Ed, which is short for Metropolitan Edison, is only the fourth largest utility in the state of Pennsylvania providing electricity to right around 561,500 customers. However the service area has recently gotten a lot of attention from competitive electricity suppliers licensed in Pennsylvania due to a large gap that exists between the Met-Ed price to compare rate and the rate that the suppliers can offer. The Met-Ed price to compare rate is what the utility charges their customers for electricity supply who do not choose to purchase power from a competitive supplier. By choosing a competitive rate, the price to compare rate becomes obsolete. The difference between the two rates can result in a substantial savings opportunity for Met-Ed customers.
The unbundling of Meted allows consumers to power shop from dozens of competitive electricity companies now offering electricity supply service. The popularity of electric rate shopping is expanding as family and friends are spreading the word on the benefits of electric choice. As of December 2015, 31.8% of Meted residential customers were buying their power from a competitive supplier. As the fight to gain market share and brand recognition continues, consumers will find it easier to shop around for cheaper rates and better incentives.
Compare competitive Met-Ed electricity rate offers below from suppliers who are licensed by the state of Pennsylvania.
Western Massachusetts Electric Company recently announce a rate increase for their residential class that will take effect at the beginning of the new year. On January 1, 2016 the Western Mass Electric price to compare price will increase to $0.10394 per KWh from the previous $0.09767 rate. The rate change amounts to a 6.42% increase on the generation supply section of the electric bill.
The change will only take effect on customers who are on the basic service rate plan with Western Mass Electric, also known as the price to compare. Customers who do not select an alternative electricity company pay the basic service rate for power supply. Through Massachusetts electricity choice energy consumers have the ability to shop the market for competitive rate plans offered by licensed electricity companies. Some competitive plans offer significant savings (above 20%) against the price to compare default rate, giving consumers the ability to not only avoid the Western Mass Electric rate increase, but to also lower their monthly bills a substantial amount from what they are currently paying.
The Western Massachusetts Electric Company provides power to roughly 150,000 customers in west Massachusetts. The company is owned by Eversource Energy, who recently decided to change the branding of the Western Mass Electric logo on the electric bill to the new Eversource logo. Despite the branding change, the company still has the same ownership. Even though default rate payers can save more than 25% and avoid a price hike in January, to date only about 20% of customers in the area have switched electricity suppliers. The rate increase is expected to spur more shopping activity in the region.
National Grid Massachusetts customers on the variable basic service rate have seen huge volatility in the price that they pay for electricity over the last year. After recent news of National Grid releasing their variable rate over the next six months, it is apparent that the volatility will continue. Consumers on the variable basic service rate can avoid the price uncertainty, as well as reduce their electricity bills, by shopping for lower competitive electricity rates offered by alternative Massachusetts electricity suppliers.
Through State energy choice laws, Massachusetts has opened up their electricity market to allow competitive energy companies to offer service to residential and business customers. The law allows customers who receive their electric bill from one of the three major utilities in the state – NSTAR, National Grid, and Western Mass Electric – to shop for a lower electricity price that would replace their utility default rate for electricity generation supply. The default rate is charged to all customers who decided not to purchase power from a competitive supplier.
Customers on the default rate pay a charge known as the basic service rate for electricity supply which includes the generation and transmission components of the electric bill. Default rate payers have a choice between paying a fixed basic service rate and a variable basic service rate. The fixed rate remains the same for six month periods, while the variable rate changes every month. However, even though the variable rate changes on a monthly basis, customers know what that variable rate will be for the next several months. Both rates are determined through an auction process that National Grid holds for alternative suppliers for the right to service basic service rate customers. The outcome of the auction process is largely dependent on the condition of the wholesale energy markets during the time of the auction.
Both rate structures have been extremely volatile over the last several years, with recent rates being the higher end of the spectrum. The high default rates have allowed for competitive electricity suppliers to offer rates that are well below the basic service offers, presenting an opportunity to for customers to lower their National Grid electric bills. Since 2012, the variable basic service rate has ranged from a low of 6.544 cents per KWh in September of 2012 to a high of over 20 cents per KWh in January of 2015. In November, the variable rate will increase by 26.4% from the October rate. Customer who remain on the variable basic service rate are going to see their total electric bills increase by about 20% as their supply rate goes up from 8.8 to 11.27 cents. The variable rate will continue to rise over the next several months going to 13.38 cents in December and then over 15 cents in both January and February of next year.
The volatility in the rates and increasing electric bill amounts can be stopped by simply shopping for a lower competitive electricity rate. In order to avoid further price uncertainty consumers should find a competitive offer that is fixed and not a floating month to month price. Finding a fixed electric rate will eliminate the uncertainty of volatility in the energy markets that leads to negative surprises on the electric bill amount. Furthermore, if the fixed rate is lower than the variable basic service rate on a monthly basis, consumers will also save money through a lower electric bill.