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.
Summer electricity rates have increase by 20 percent for residential customers who receive their power bill from the Penelec electric utility company. Penelec announced in late May that their default generation and transmission charges would increase on June 1, 2014, giving consumers little time to shop for competitive power prices.
Penelec imposes a default rate, which is called the price to compare by the Pennsylvania Public Utility Commission, to all of their customers who have not chosen a competitive electric supplier to provide power supply. The default rate includes generation and transmission charges. Distribution charges continue to be charged by Penelec and are regulated by the Pennsylvania PUC. Prior to June first, the Penelec price to compare for residential customers was $0.07709 per KWh and included both generation and transmission service. On June 1, 2014 that rate increase by 20% and is now $0.09254.
Penelec residential customers who are on fixed rate contracts with competitive suppliers do not have to worry about the rate increase. Those customers will continue to pay the rates outlined in their agreements with the competitive energy companies that they have chosen. Default paying customers can save money and avoid the rate increase by shopping for low Penelec electricity rate plans offered by power companies who are licensed by the Pennsylvania PUC. Below are several offers from licensed competitive electricity supplies.
Pennsylvania electricity customers who receive their monthly electric bill from the Metropolitan Edison Electricity (Meted) company are likely to see a huge increase on their expenses this summer if they are not purchasing their power from a competitive supplier. On June 1, 2014 the default rate for generation and transmission service for Meted residential customers increased from $0.07753 to $0.09725 per KWh. The increase will result in a 25% increase in the price customers pay for power on their monthly Meted electricity bills. The 25% increase only represents the rise in the rate and not the jump in usage that most consumers see in the summer months compared to the spring. Taking into account both the usage and rate increases, Meted residential customer are expected to see electric bills 35-55% higher in June through August as compared to March through May.
The rate increase will only occur for Meted customers who have not selected a competitive supplier. Customers who have not shopped pay a default rate for power labeled the “Price to Compare”. If a consumer can find a competitive rate lower than the current price to compare they will be able to save money on their Meted electric bill.. Current competitive Meted electricity rates are showing savings as high as 17% versus the Meted default price to compare rate.
Below is a list of updated Meted competitive electricity prices. All offers are updated on a daily basis and are offered from companies who are licensed by the Pennsylvania Public Utility Commission.