PECO Residential Rates Soar Upward

PECO energy customers who have yet to shop for a competitive electricity rate are about to see their electric bills rise substantially. PAElectricity.org, an energy price information site for Pennsylvania consumers, has reported that a PECO residential rate increase that will go in effect on October 1. The increase will only effect those customers who are still paying the default rate for electricity supply with PECO; which represents all residential customers who have not chosen a competitive energy supplier to provide electricity for their home.

The average household using 1,000 KWh a month will see their PECO electric bill rise by $15.95 a month. That household, using 1,000 KWh a month, who would have paid a rate of $0.08905 per kilowatt hour in September will pay an additional $0.01595 starting in October for a total rate of $0.108 per kilowatt hour. PECO residential customer will pay $0.1050 per KWh for the first 500 KWh they consume, and $0.1114 for all kilowatt hours above that. This means that the more energy you use the higher your rate will be. Most houses use more than 500 KWh of electricity per month.

Fortunately, PECO residential electricity customers can protect themselves against the rate increase and pay even less than what they were paying in September. Several state licensed electricity suppliers (see below) are offering competitive electric rates to PECO energy customers that will offer huge savings versus the PECO default rates.

People who have been slow to shop for competitive rates often have lack of understanding of how the Pennsylvania electricity choice market functions. Here is what you need to know about switching off of the PECO default rate and onto a lower competitive electric rate:

1. The quality of the power will be the same.
2. PECO Energy remains your regulated electricity delivery company.
3. PECO Energy will continue to send you your monthly electric bill.
4. The lower competitive rate will replace the PECO default rate (generation and transmission)
5. PECO will not be upset that you have switched and are now saving money.

The last statement is often confusing to consumers who are new to electricity choice. Through the Pennsylvania energy choice act, PECO Energy remains a regulated utility company who generates revenues from the regulated distribution charges found on your electric bill. Those distribution rates are the same no matter who you choose to supply your electricity (generation and transmission rates)

Here are current competitive electric rates for PECO Energy customers that will save you money against the higher PECO default rates: