Electricity choice laws that allow customers who are part of First Energy’s Penelec service area to shop for competitive power rates are paying off for those customers who have switched their power supplier. The Pennsylvania Electricity Generation Choice and Competition Act gives every customer who receives an electric bill from Penelec the option to shop for lower electricity prices among a variety of energy suppliers who are licensed by the state. Customers who do not shop pay a default rate for their electric generation supply through Penelec, though the actual money received by Penelec for these charges is passed through to other competitive suppliers who have previously bid for the ability to provide power to the default customer pool.
Recently competitive suppliers have been dropping their electricity rate offers substantially in order to attract more customers. The lower competitive prices combined with a high default rate have ballooned the potential energy savings available for Penelec residential customers who have yet to switch their electricity supplier. For the first time in several years customer who take the time to compare Penelec residential rates can yield energy savings as much as 21% versus the default rate.
The fact that simply switching electricity suppliers from Penelec to a competitive supplier can provide substantial savings on the electric bill has spread slowly throughout the region. Despite more than a handful of suppliers offering rates yielding savings of more than 10% against the Penelec generation rate, only 29.3% of the residential customer pool had entered into an electricity agreement with a competitive supplier as of April 2016. There is still a level of unfamiliarity with electricity choice that keeps many Penelec customers away from the act of purchasing competitive power. Though customers can easily obtain energy savings on their monthly Penelec electric bills by simply choosing a lower electricity rate option, the majority of customers remain on the higher default rate.
Customers looking to shop for energy saving options in Penelec can do so by comparing rate offers from multiple suppliers below. All of the companies are licensed by the state of Pennsylvania and work with the Pennsylvania Public Utility Commission and Penelec to ensure a smooth and unnoticed switch process. One of the major reservations customers have about switching suppliers is the limited information they have about the switch process believing that it consists of repair personal visiting the home and disruption the power service. The truth is that the switch process simply occurs through a computer and does not disrupt the power service even for one second. The customer goes from paying the default rate to the new competitive rate without an actual person coming to the home.
Customers of Eversource Energy living in the Boston and surrounding areas are quickly becoming familiar with the benefits of Massachusetts electricity choice. Competitive electricity suppliers are flocking towards the Boston market offering attractive offers that can save Eversource customers hundreds of dollars per year on their electric bills. The goal is simple for the competitive supplier – acquire as many new customers as possible in what is becoming one of the hottest electricity markets in the country. In trying to accomplish this goal many electricity suppliers are slashing their prices to entice first time Boston electricity shoppers to switch over to their service.
The ability to shop for competitive electricity rates has remained a foreign concept to the majority of Boston residents with switch numbers hovering around the 30% mark. Despite the fact that several companies are offering savings of more than 20% against the Eversource price to compare, seven residential customers out of every ten in the area have elected not to shop for competitive electricity rates. The low shopping numbers are suspected to be caused primarily by a lack of education and understanding of Boston electricity choice laws. Customers who are not participating in energy shopping are often unaware that switching electricity suppliers is an easy automated process that does not require the power to be turned off or repair personal to visit the customer’s property. The electricity switch process is unlike switching cable providers or cell phone carriers which can often require a consumer to dedicate hours to complete the process. In contrast, switching electricity suppliers in Boston can be done in less than five minutes by using an electricity price comparison website.
In order to entice consumers to shop for electricity rates, companies need to offer a price that is below the Eversource price to compare. Eversource Energy is the regulated utility company for the city of Boston and surrounding suburbs. As a regulated utility they are responsible for delivery power to all properties within their service area at distribution rates that are regulated by the Massachusetts Department of Public Utilities. Eversource Energy’s role as a regulated company is often a source of confusion to consumers who are being told that Massachusetts is now an electricity choice state. To clarify, it is the electricity generation or supply component that is open to choice, while the delivery of the power remains regulated.
In addition to charging their customers regulated distribution charges, Eversource Energy also charges a default generation rate to their customers who do not switch to a competitive Boston electricity supplier. Currently they are charging this rate to about 70% of their residential customers. When a competitive supplier can offer a rate below the default price to compare rate, they are able to advertise the difference as the amount of customer can save by switching. Eversource Energy is also responsible for invoicing their customers, even the ones who have elected to purchase their power form a competitive supplier. When a customer switches suppliers they still receive their monthly Eversoruce electric bill. The only difference is that the competitive supplier and rate is listed in the electricity generation supply portion of the electric bill. The distribution or delivery section of the bill remains the same regardless of whether of competitive supplier was chosen. Below is a list of some of the more competitive rate offers available in Boston compared to the current Eversource price to compare default rate.
Maryland’s second largest electricity utility is seeing an increase in competitive shopping activity as historically low energy prices are enticing first time shoppers to search for savings. PEPCO Energy delivers power to over 500,000 residential and commercial customers throughout Maryland. While the delivery of power remains a regulated business in the state, Maryland electricity choice allows consumers to shop for competitive power generation offers. Customers who have not shopped pay a default rate through PEPCO Energy for generation supply. Competitive Maryland electricity suppliers are offering fixed electricity rates that are well below the default rate, which results in electric bill savings for those PEPCO customers who take advantage of the choice laws.
The majority of consumers residing in the PEPCO service area are still unaware of their ability to shop the market for competitive electricity rates. Officially the state has been an energy choice state for more than a decade, however it wasn’t until the last few years that competitive electricity suppliers began marketing their services. Prior to this time the competitive companies were unable to offer electricity prices to customers that provided significant savings, if any, against the PEPCO default rate which is officially called the standard offer service (SOS) rate. Falling natural gas prices over the last few years have allowed electricity prices to fall, resulting in enhanced savings opportunities for PEPCO customers living in Maryland.
Lower energy prices and a high SOS PEPCO rate have caught the attention of executives working for competitive electricity companies who are looking for new customers. Initially, as the Maryland electricity choice market started to grow, competitive suppliers focused most of their marketing efforts on the BG&E market which contains nearly double the number of customers as the PEPCO market. WHile BG&E is still attractive for the suppliers, the combination of savings potential and first time shoppers in PEPCO is to enticing to pass up. Meanwhile, as more competitive suppliers enter the market, consumers are benefiting even more as rate offers are being pushed down and their options are expanding.
In order to sell electricity to a PEPCO customer the competitive electricity supplier must be licensed by the Maryland Public Service Commission. For first time shoppers, the rate offered by the competitive supplier replaces the PEPCO standard offer service rate. Electricity choice in the PEPCO service area is providing an easy way for consumers to lower their electric bill. All switches are done electronically, so the customer does not have to stay at home and wait for a technician to come over and do manual work. Below is a list of many of the lowest PEPCO rates currently available, all offers are updated in real time.
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.