Customers of Delmarva Power in Delaware have the ability to save a substantial amount of money on their monthly electric bills by searching for a competitive supplier. Delaware electricity choice provides consumers with the option to either pay the default standard offer service price for power supply through Delmarva or replace that price with a competitive offer. Currently, competitive suppliers are offering electricity rates that are well below the standard offer service price, resulting in an opportunity for Delaware residential customers to reduce their electricity bill in the coming months.
While Delaware has been open to electricity choice for several years, until recently it had been difficult for residents in the state to purchase their power from a competitive supplier. Few electricity suppliers were willing to go through the lengthy process of offering electricity rates in a relatively small and unproven market. Meanwhile, the neighboring state of Maryland has seen a consistent increase in both electricity supplier offers and number of customers shopping for competitive rates over the last several years. The success in Maryland has enticed some major electricity suppliers to take the leap and enter the Delaware market in recent months.
In order to entice customers to shop for the first time some suppliers are offering rates that are as much as 19% lower than the Delmarva DE standard offer service. The majority of Delmarva customers are unaware of their ability to shop for competitive power, which leaves the job of educating the market up to the suppliers. The electricity bill savings available to Delaware residential customers should help speed up the process. According to the Delaware Public Service Commission, as of the end of April 2016 only 28,198 of the 277,109 residential customers in the service area were purchasing power from a competitive supplier. While the residential switching percentage is just above 10%, the number of business customers who has switched is above 30%. Both markets are expected to see more shopping activity in the coming months and years as more competitive suppliers enter the market and provide more options for customers.
Below are current competitive prices offered in the Delmarva Delaware service area.
Alternative electricity suppliers in Pennsylvania are offering attractive offers to residential customers of Pennsylvania Power & Light (PPL) that are lower than the utility’s price to compare charges. Despite a recent price reduction in the default rate by PPL, the energy choice market is producing rate offers that can provide savings by as much as 15% to the generation supply section of the bill.
On June 1, 2016 PPL was able to drop the default price to compare rate to $0.07491 from $0.07918, which was a modest 5.4% decrease. However competitive rates offered by alternative PPL suppliers have dropped as well providing even larger savings opportunities. The PPL price to compare rates are the result of auctions that are held months prior to the rate actually taking effect. In contrast, competitive rates offered by alternative suppliers are based on current energy market conditions. If wholesale energy rate offers drop after the auction for the Price to Compare rate is complete, alternative suppliers have an easy time undercutting the default price, which gives PPL residential customers a huge incentive to shop for lower electricity prices.
When the price adjustment went into effect on June first, just under 46% of the residential customer pool were purchasing their power from an alternative PPL supplier. The shopping activity in the PPL service area has been above average compared to other competitive electricity markets in the United States and one of the highest in the state of Pennsylvania. However, even with almost half of the customers already active participants in energy choice and a recent drop in the default price, shopping activity could pickup in August as new alternative offers continue to be presented that offer strong electric bill savings.
Here is a list of current alternative PPL electricity rate offers and their comparison to the recent PPL Price to Compare rate.
Western Pennsylvania residential customers who receive their power from Duquesne Light experienced a slight rate hike in early June. The Duquesne Light residential price to compare went up from $0.0777 to $0.0807, representing a 3.9% increase. Meanwhile, competitive electricity suppliers have kept their price offers stable, resulting in large savings for customers who have decided to start shopping for lower rates. The new price to compare is expected to last through the end of the year making the summer of 2016 an idea time for new customers to shop for attractive electricity prices in Pittsburgh.
Prior to the rate change Duquesne Light reported that 31.9% of their residential customers were purchasing their power supply from a competitive supplier. Due to the Pennsylvania Electricity Competition and Choice Act, Duquesne Light customers have the ability to shop for competitive prices for the generation and transmission component of their electric bill. Duquesne Light charges regulated distribution fees for delivering power to the customer’s home or business. The power generation aspect is open to competition, however those customers who do not find a competitive rate pay the price to compare rate offered by Duquesne Light. Competitive offers are yielding savings as high as 20% versus the price to compare rate.
The JCPL price to compare, or basic generation service rate, was adjusted on June 1, 2016 and will reach customers when they receive their electric bills in July. Basic generation service charges include the generation and transmission portion of the JCPL electric bill, which encompasses the portion of the bill that is open to customer choice meaning that consumers have the ability to shop and purchase a lower price from a licensed New Jersey electricity supplier. Customers who choose not to shop for competitive rates remain on the basic generation service rate. Customers who are active in the New Jersey electricity choice market often refer to this rate as the price to compare, since it can be used as a benchmark to compare competitive offers against.
Every year the price to compare rate is adjusted twice a year on June 1, representing the summer rate period, and October 1 which represents the winter rate period. The prices are determined by a series of auctions that occur over a three year period. For example, the price to compare prices for 2016 were determined through auctions that occurred in 2014, 2015, and earlier in 2016. The most significant aspect of the rates this summer is the big jump in price for customers who used more than 600 KWh a month, which is the case for most properties bigger than a one bedroom apartment. During the months of June through September customers on the JCPL price to compare will pay a rate of $0.094604 for the first 600 KWh. The rate will then jump 9.8% to $0.103862 for every KWh consumed above the 600 mark.
Currently njelectricity.org, a New Jersey energy comparison site, is showing 10 competitive plan offers below the $0.09406 price and 17 total plans below the $0.103862 price. Customers on the JCPL price to compare price can save over 20% on their electric bills this summer by choosing a competitive supplier. Surprisingly as of March 2016 only 20.7% of JCPL customers had switched off of the price to compare rate according to the New Jersey Board of Public Utilities. The recent jump in savings potential caused by lower competitive prices may spark more shopping activity in JCPL this summer.
Below is a list of competitive JCPL offers by electricity suppliers who have been licensed by the New Jersey Board of Public Utilities.