PECO Energy increased their rates for generation and transmission service on September 1, 2015. The company had been charging their customers $0.082 from May 1st through the end of August, but when the calendar turned to September the rate went up to $0.0849 which is a 3.5% increase. Though small, the increase comes at a time when people are trying to reduce their monthly expenses due to a struggling economy and rising costs.
Alternatives due exist for PECO Energy customers due to the fact that Pennsylvania is an energy choice state, which allows them to shop for competitive electricity suppliers. In Pennsylvania alternative electricity suppliers can offer service to customers for their generation and transmission costs, which is the component of the PECO electric bill that recently increased. Generation and transmission costs make up the official PECO Price to Compare rate, the price that PECO charges to their customers for electricity generation supply who do not buy their power from an alternative supplier. Currently several alternative PECO electricity suppliers are offering electric rates that are lower than the price to compare; a scenario that will result in lower electric bills for a customer who decides to switch suppliers.
As of August 2015, 33% of PECO residential customers have elected to purchase their power from an alternative supplier. The remaining two-thirds continue to purchase their power supply from PECO Energy at the higher price to compare rate. The competitive electricity market provides an easy way for customers to save money. Customers who do not shop for lower rates are paying more for their electricity than what is needed. As a utility company, PECO Energy is in charge of delivering power to all of their customers at regulated distribution charges, regardless of who the customer chooses to supply their power. PECO Energy is also responsible for charging default rate payers the price to compare for their power supply, however they do not profit from this side of the business. Instead they collect that money and transfer it over to electricity suppliers who won previously held auctions to provide power to the default rate paying class.
PECO Energy customers who are still paying the default price to compare rate can save money by shopping for alternative electricity suppliers below. All supplier and their rate offers have been approved by the Pennsylvania Public Utility Commission.
Ohio electricity customers who receive their monthly electric bill from Dayton Power and Light have a tremendous opportunity to save money by switching their electricity supplier. As one of the smallest markets in the state, competitive suppliers have overlooked advertising to Dayton Power and Light customers until recently, instead deciding to focus their marketing efforts on some of the state’s larger markets such as AEP. However, as the market has matured and electricity choice awareness has increased, more electricity companies are attempting to gain new customers in some of the smaller utility markets. The Dayton Power and Light market is particularly attractive due to the current default price conditions that residential customers are paying; competitive prices are well below the default price providing customers new to electricity choice a powerful incentive to switch to a new electric company.
Ohio has been working towards developing a better electricity deregulation market allowing residents to more easily choose an alternative electric supplier for their generation power costs. Electricity price advertising has helped Dayton Power and Light consumers better understand the Ohio electricity choice laws. Many new power shopping customers are surprised to learn that even after they switch electric suppliers, their local utility will continue to deliver the actual power to their home and in most cases mail the same electric bill. This means that even after a Dayton Power and Light customers switches electricity companies, DP&L continues to maintain the reliability of the power lines in the area and mail out the same electric bill, with the competitive rate chosen replacing the DP&L default rate.
Despite the large savings potential for residential customers in the area less than half have taken the time to switch electricity companies. Competitive rates are currently around 20% lower than the DP&L default rate, making electricity choice and switching one of the easiest ways to save money on a necessary expense. Shop and save below from a list of Dayton Power and Light competitive electricity plans that have all been approved by the state of Ohio. The switching process is all done through computers. Customers do not need to be home when the switch is made and a person does not physically come to the property to make the switch.
Energy choice has expanded in Maryland, resulting in a growth in licensed electricity suppliers offering service to customers. With the increased competition among electricity suppliers, many of these companies are starting to solicit customers in some of Maryland’s smaller markets such as Delmarva Power & Light. Until recently the majority of these electricity suppliers would only focus their attention on BG&E, Maryland’s largest electric utility market. While relatively small at about one-sixth the size of BG&E, Delmarva Power & Light has grabbed the attention of energy marketing executives as they have come to realize that they can offer consumers in the area significant savings versus the utility standard offer service.
Delmarva Power & Light delivers electricity to nearly 175,000 residential customers and another 32,000 businesses of all sizes. As of December of 2014, only 16.2% of residential customers and 31.6% of small business customers were buying their power form a competitive supplier. Delmarva customers who do not choose a competitive energy supplier continue to purchase their power supply from the utility’s standard offer service which is a default rate structure. The standard offer service price is produced through an auction process where Maryland electricity suppliers bid for the right to supply power to a portion of the default customer pool. The outcome of these auctions is largely based on the condition of the wholesale energy markets during the time of the auctions. Due to high volatility in these markets over the last year, the current Delmarva Power & Light standard offer service experienced a steep rise in early June, at a time when wholesale energy prices have fallen over the last several months. The difference in the two price sets have allowed competitive Maryland electricity suppliers to offer residential customers rates that are lower than the Delmarva standard offer service.
The primary reason most people begin their research into competitive power prices is to save money. Locking in a competitive electricity rate that is lower than the current Delmarva standard offer service rate you will guarantee savings on the supply portion of the Delmarva Power & Light electric bill. With current competitive electricity rates yielding as much as 11% versus the standard offer service, the incentive to switch now exists for consumers, and as a result the number of customers buying their power from a competitive supplier is expected to increase significantly in the DP&L area. Find a list of Delmarva Power & Light competitive rates below from electricity suppliers licensed by the state of Maryland. All rates are updated in real time.
Maryland energy choice allows for consumers to shop for competitive electricity and natural gas rates offered by alternative suppliers. The utility companies in the state that customers have grown to become familiar with continue to function as their role as the utility for their specific service area; they continue to deliver power to their customers through the power and gas lines through regulated distribution charges. Until recently the Potomac Electric Power (PEPCO) service area in Maryland had been overlooked by many competitive suppliers as companies focused their marketing efforts on BG&E, the state’s largest utility, as well as other larger service areas in Pennsylvania and New Jersey. The combination of market maturity and volatile energy prices has changed that and put the PEPCO Maryland service area on the map of electricity suppliers looking to attract new customers.
As Maryland’s second largest electric utility, PEPCO provides power to over 550,000 total customers in the state. The residential customer pool in the area was over 500,000 at the end of 2014, giving competitive suppliers over a half million new customers to solicit. Competitive Maryland electricity companies have recently started to focus more attention on acquiring PEPCO customers due to the widening space between the standard offer service rate for electricity and the rate these companies are able to offer. Through Maryland electricity choice customers can shop for a competitive generation and transmission rate, also known as the electricity supply price. If a customer does not choose a competitive plan for their electricity supply than they pay a default rate through PEPCO called the standard offer service.
The standard offer service rate, or price to compare, recently went up due to market conditions in wholesale electricity. PEPCO oversees an auction process to determine the standard offer service price. After the auction for summer 2015 rates was completed, energy prices began to drop allowing competitive suppliers to buy power contracts on the wholesale market and start offering lower prices to PEPCO consumers. Now that competitive electricity suppliers are able to offer fixed rate contracts to PEPCO customers that are well below the PEPCO standard offer service rate, a true incentive exists for both suppliers and customers to participate in the Maryland electricity choice market.
That incentive, of course, is the ability for consumers to find cheaper PEPCO electricity rates and thus pay less money on their monthly electric bills. When a customer chooses a competitive price plan that rate simply replaces the PEPCO standard offer service rate, so the savings are simply and easy to understand. Current PEPCO rates offered by licensed electricity suppliers are shown below.