Chicago consumers are no longer confined to purchasing their power from the local utility company. As a result of the Illinois Electricity Choice Act, power users can now shop for lower prices among several electricity companies in Chicago.
Energy choice in Chicago is providing Chicago residences with huge savings versus their traditional utility’s price to compare. Commonwealth Edison has provided electricity service to the city of Chicago and surrounding areas since 1907. The new energy choice laws has changed the role of ComEd from a full service electricity company who supplies and delivers power to their 3.6 million customers, to just being in charge of power delivery.
ComEd is encouraging consumers to find low rates from Chicago electricity companies, citing that they do not profit off of price to compare default rates. Money from the price to compare rates are passed through to electricity companies who have bid for the right to service default customers. ComEd earns revenues and profits from the delivery charges on the bill which remain regulated by the Illinois Commerce Commission Energy Division.
Lower electricity rates are currently available against the official ComEd price to compare rate which includes the generation and transmission rates. The lower electric rates will result in big savings on the electric bill, which continues to be sent by ComEd even after a competitive electricity company is chosen.
Electricity choice in Connecticut is clearly working as competition is forcing prices on a downward trend. Just a few short years ago consumers in Connecticut were paying the highest electricity rates in the country, causing state senators to draw up a Energy Bill to end electric choice. The bill was eventually vetoed by the governor, and with time prices have dropped.
Connecticut Light & Power customers have seen electricity deregulation and competition bring down their generation rates by more than 30%. In 2009, the generation default rate for CL&P residential customers was over $0.11 per KWh. Now, in 2012, that default rate has dropped to $0.0828, with competitive electricity rates as low as $0.0769.
Consumers who do not shop for competitive electricity pay the default rate that is offered by CL&P. Though they may not realize it, the drop is a result of increased competition. However, to maximize the benefits of Connecticut electricity choice, consumers should shop for low electricity prices.
Below are some current competitive electricity rates from Connecticut Power Companies offering service in the CL&P territory. Even after a competitive rate is chosen, the customer will still receive their monthly electric bill from CL&P, and CL&P will continue to respond to power failures and emergencies. The only thing that changes is the rate (i.e. you pay less on your monthly electric bill).
Many Pittsburgh consumers are surprised to learn the Duquesne Light is not the only power company in the area. This is because the Pennsylvania electric choice law allows alternative power companies to offer competitive pricing to power users in Pittsburgh and the surrounding area.
Consumers who have not participated in Pennsylvania’s competitive electricity market pay a default rate with Duquesne Light labeled the “Price to Compare”. Regardless of which Pittsburgh power company chosen, Duquesne Light continues to deliver the power to the homes and businesses of Pittsburgh. This is because Duquesne Light is the area’s regulated electric utility company, which means they are responsible for the maintenance and management of the power lines.
Selecting a competitive power company can lower the electric bill for Pittsburgh consumers substantially. Here are some current electric rate offers by Pittsburgh power companies:
As the competitive electricity market takes shape in New Jersey, customers of PSEG are seeing more options as more power companies compete for market share. Electricity customers of PSEG can now compare power companies in order to find cheaper electric rates. While this still might be a new concept for some, the NJ BPU is in full force in monitoring the active electricity shopping market that was created by the New Jersey Electricity Choice and Competition Act.
Electricity customers of PSEG are able to shop for lower rates on the supply section of their electric bill. Savings versus the default electric rates for residential customers have been seen as high as 20%. The delivery section of the PSEG electric bill remains the same no matter which electric supplier is chosen. While electricity choice deregulated the generation supply portion of the electricity business, the delivery (distribution) of electricity has remained regulated. This means that PSEG remains responsible for the power lines and wires of their territory, and is in charge of responding to power emergencies.
Electricity choice in PSEG and other New Jersey utilities (JCPL, Atlantic City Electric, Rockland Electric) simply allows consumers to compare power companies and purchase electricity at lower prices and terms that meet a customer’s specific needs.
