PECO Residential Rates Set to Increase in April 2013
Residential electricity prices will be increasing on April 1, 2013 for PECO Energy customers who have not shopped for a competitive electric rate. The current PECO price to compare rate – which includes power generation supply, the alternative energy portfolio standard charge, and transmission charge – of $0.0869 will increase to $0.0959 on April 1st, an increase of nine-tenths of a penny or 10.4%.
The rate increase will only occur for PECO Energy customers who are on default electric service. Default customers are those consumers who have not taken the time to shop for a lower electricity price from a competitive electricity company. As of January 16, 2013, 69% of PECO Energy customers remain on the PECO default service. The 10.4% increase on April 1st is expected to increase the number of PECO electricity shoppers as competitive energy companies are offering low electricity rates below even the current default prices.
The 31% of PECO Energy customers who have participated in the Pennsylvania electricity choice market will not be affected by the PECO electricity rate increase. Consumers who have locked themselves into low fixed electric rates can take pride in the fact that while the PECO electric bill will increase by 10% for the majority of their neighbors, their bills which most likely are already lower, will not see a rate increase.
One of the greatest benefits of Pennsylvania electricity choice is that it brings rate product choices to consumers. Many of the Pennsylvania consumers who have participated in electric choice have opted to select fixed rates that last a year or longer. This strategy has proved to be beneficial with the recent news of utility default rates increasing. Not only will selecting a fixed rate save you money in the near term, but it can help you save even more throughout the year as PECO adjusts their default Price to Compare.
See below for a list of competitive PECO electric rates that are apples-to-apples comparisons to the PECO default price to compare.
