Electricity customers in New York City are looking for lower rates after a Con Edison rate hike that took effect in February. NY City consumers who receive their electric bill from Con Edison, and who are not currently on a competitive electricity rate plan, will see their rate jump to an average of $0.1637 cents per KWh on their March bills for the service month of February. The high Con Edison rate is 60% higher than the lowest Con Edison electricity rate offered through New York electricity choice laws. By entering into an electricity contract with a competitive energy supplier a customer can replace the high default rate with the rate being offered by their chosen supplier.
Con Edison offers a default variable rate for electricity supply for their customers who do not shop the energy choice market. The variable rate leaves customers at the discretion of the market which can bring about big surprises from month to month. In contrast, locking in a low fixed electricity rate gives the same consumer stability in their electric bill amounts. The customer who locks in a fixed rate for 12 months or more may not save money versus the Con Edison variable rate very single month, however they will at least know what to expect and not be thrown any surprises that can effect their overall budgets.
With the implementation of New York electricity choice, Con Edison’s main role is to deliver power to homes and businesses through the regulated lines and wires. When purchasing power for their default paying customers, they simply buy what is available on the wholesale market; they are not looking out for their customers best interest as this is not their responsibility. This strategy can often lead to customers paying much more for electricity than they should, as will be the case for thousands of NY City consumers on their March electric bills.
NY City electricity customers who have not yet selected a electricity rate from a competitive supplier should do so immediately in order to protect themselves from high variable electric rates that can hit at any given month. All rates offered below are from suppliers who are regulated by the New York State Public Service Commission.
Electricity bills in the Connecticut Light & Power service area are increasingly being reduced due to competitive power rates being offered by alternative CL&P energy suppliers. Customers are lowering the price they pay for electricity by choosing to sign electricity agreements with alternative energy suppliers who are licensed by the state of Connecticut. Choice awareness among the CL&P residential class has expanded in recent months due to rising generation supply rates that are offered by CL&P. Customers who do not choose an alternative CL&P energy supplier pay a default rate for their electricity; that rate recently saw a 25% increase.
Alternative energy suppliers have entered the Connecticut electricity choice market in hopes of gaining market share by offering electricity rates that are lower than the CL&P default price. Energy shoppers are becoming more aware of their options as alternative electricity suppliers have increased their marketing budgets. The infusion of new energy suppliers are helping to educate a larger pool of customers so that they can take advantage of the best CL&P electricity prices being offered that can result in substantial monthly savings.
Whenever rates see a significant increase consumers start to look for alternative solutions. In energy choice states such as Connecticut, the clear alternative is to shop around for a lower electricity rate. Connecticut people who are switching to alternative suppliers for the first time are often surprised as to how easy the process is and wonder why they haven’t done it sooner. The CL&P basic generation charges, the default rate, had remained stable over the last year before January 2015. With stable prices uninterested customers had little incentive to learn about electricity choice and shop the market. Now with savings above 30%, the incentive is there for customers to learn about alternative energy suppliers and their offers.
If you reside in the Boston area, or the surrounding suburban cities, you have grown accustom to receiving your monthly electricity bill from NSTAR. You may have been surprised in February when your electricity bill arrived with a new name on the header. Looking for the familiar NSTAR name and logo, you were instead greeted by the new company name Eversource Energy.
NSTAR has not been bought out by another company nor did they participate in a corporate merger. The name change is instead a rebranding effort by the company that owns NSTAR and several other high profile utility companies in the New England and northeast area. In addition to NSTAR, National Grid operating in both Massachusetts and New York, Western Mass Electric, and Connecticut Light & Power are all going through the name change to Eversource Energy. The company wants to create a brand name that can be easily recognized across all of the markets that they currently service.
The timing of the name change has not been good for the people at Eversource as severe rate hikes through many of the company’s electric utility default rates have taken place over the last few months, prompting consumers to think that the name change is related to the price hike. The reality is that this is just a coincidence. NSTAR, National Grid in Massachusetts, Westerm Mass Electric, and CL&P have all recently increased their electric default rates due to the results of auctions they held for the price in late 2014. The price increases are about 20-25% in Connecticut while they range from 30-100% in Massachusetts. Customers can lower their electric bills by shopping for a lower electricity supplier in their state. In an attempt to obtain new NSTAR customers, energy suppliers are offering low electricity rates in Boston that provide savings of up to 30% when compared to the NSTAR generation default price.
While the name is different the role that Eversource Energy plays is the same. This role includes delivery reliable power to homes and businesses, responding to power outages and other power lines and wires malfunctions, sending out and collecting money for the monthly electric bill, and providing a default rate for generation supply. For customers looking to lower their electric bill they can choose a lower electricity rate which will replace the Eversource default rate, even though Eversource will continue to send out the electric bill and respond to power failures.
Businesses in central Pennsylvania who receive their power from Pennsylvania Power & Light will face a sharp price increase that is set to go into effect in March. PP&L announced that their commercial electricity price to compare rate will increase by 8.5% as the current rate of $0.09325 per KWh will rise to $0.10121 per KWh. The rate increase will effect businesses who are not currently purchasing their power from a competitive Pennsylvania electricity supplier and who instead are on the PP&L default price to compare rate structure.
Roughly 47% of commercial customers serviced by PP&L are on the default rate structure. These customers can prevent the rate increase, and even lower their current rate, by shopping for a competitive Pennsylvania commercial electricity rate which would replace the PP&L price to compare rate on the electric bill.
The Pennsylvania electricity choice market has seen more activity in the commercial sector than the residential since the market took off five years ago. Statewide 45.9% of all commercial electricity customers are purchasing their power from a competitive supplier through a contract. In contrast, only 35.9% of residential customers have selected an alternative to their utility. Commercial participation is highest in the PP&L service area. The rate hike that will go into effect on March 1, 2015 is expected to widen the gap even further as business owners who previously did not look into competitive rates will likely take a closer look at their options.
Business owners can compare commercial PP&L electricity rates by selecting their utility and average monthly bill amount. An energy matrix offering different fixed rate terms and start months will populate, allowing the business to decide on when their contract will start and for how long they would like to secure the rate.
To see current commercial electricity rates select the boxes below: