JCP&L commercial customers shopping for competitive electric rates in New Jersey can expect to save 15-25% off of their electric bills. According to New Jersey electric switching Stats, over 70% of the commercial load has already been switched over to a competitive supplier. Natural gas prices are near a 10-year low, which is currently putting downward pressure on electricity wholesale rates. By locking in a long term rate a business will be protected against any spikes in the energy market for over the next few years. With energy prices near record lows the number of JCP&L commercial customers participating in energy choice will continue to increase.

Participating in energy choice will have no negative impact on the quality of power a business receives from the local distribution company (JCP&L). JCP&L will still be in charge of maintaining the lines and wires that deliver the electricity from the delivery point to your place of business. They will continue to charge the distribution cost, which is a regulated charge. Whether you decide to keep JCP&L for your basic generation service or switch to a competitive supplier, the distribution charges will remain the same.

Shopping for competitive electric rates has never been easier. JCP&L provides the official price to compare rate on the electric bill. This is the rate a business will use while comparing prices with a competitive supplier. The price to compare rate will include all components of the supply charge including New Jersey’s usage and sales tax (SUT). When comparing rates it is important to review the contract carefully to make sure your business is comparing apples-to-apples to JCP&L’S price to compare rate. A number of services are becoming available that can help find the lowest price, based on term and rate classification. ElectricRate.com offers a platform that provides a side-by-side comparison to JCP&L’s basic generation rate and a supplier’s competitive offering. If you want a hassle free experience and unbiased advice they are worth checking out.

Businesses in Philadelphia and the surrounding areas have the ability to substantially lower their electricity bills if they take the time to shop for competitive commercial electricity rates. The electricity savings are available as a result of a recent rate hike from PECO Energy at the same time that the competitive business electricity market is pushing prices down.

On December 1, 2013 the General Service PECO price to compare rate surged to $0.1016 per KWh. Meanwhile competitive commercial electric prices are well below $0.09 per KWh. The PECO General Service rate is the default electricity rate charged to small businesses who are not purchasing their power from a competitive electricity company.

The rate hike will go into effect for Philadelphia electricity business customers who have not entered into an electricity contract with a competitive supplier. Companies who have previously switched electric suppliers and who are on contract will see no change on their PECO electric bill. To date 50% of all PECO commercial customers are buying their power from a competitive supplier. The 50% who have not taken the time to learn about Pennsylvania business electricity choice are paying more than 25% for electricity generation and transmission service than is necessary. Companies offering low Philadelphia commercial electricity rates are available for these default rate payers to shop and lower their electric bills.

Business owners and decision makers who receive their electric bill from PECO can use the energy price matrix below to shop for competitive commercial electric rates that will provide savings versus the PECO price to compare. Select “PECO” in the Utility box and then select your average monthly electric bill amount to see specific rates for your rate class.

Small businesses who are still on the PP&L generation default rate will likely see a significant increase on their electric bills in December. PP&L has announced that their default generation electricity rates, known as the price to compare, will likely increase by 14% on December 1, 2013. The exact increase will not be known until late November as the price to compare rates are based on an auction process whose outcome is largely dependent on the wholesale electricity market at the time of the auction. However the estimated number have been consistently accurate, making the 14% electric bill increase for small businesses serviced by PP&L highly probable. The default rate in December is expected to be 8.686 cents.

The rate increase will only occur for those businesses who have not shopped for competitive electric rates and are still paying the utility default rate for generation and transmission. Companies who have immersed themselves into Pennsylvania electricity choice and have locked in fixed electric rate contracts will continue to pay the price for power as stipulated in their contracts.

Business electricity customers who have not yet found a competitive power company still have time to lock in a low fixed rate and protect themselves from the December rate increase. Currently in Pennsylvania customers can only switch off of default service and onto a competitive rate structure on their scheduled meter read date. In addition, at least eleven days are needed for processing prior to the switch date. Companies with meter read dates towards the beginning of the month would want to lock in a fixed rate with a competitive electricity company before November 20th at the latest to prevent the December rate increase.

Below are a collection of Pennsylvania commercial electricity rates gathered from several companies. The enrollment process can occur online and takes only a few minutes. Lock in a low PP&L commercial rate as soon as possible in order to prevent your company from paying the higher December default rate.

Compare PP&L Business Electricity Rates:

In discussing the best time to lock in fixed business electricity rate contracts, there is a wide misconception that fixed electricity rates go down during the fall and spring season of the year. While recent historical data may lead one to believe this may be the case, following this to an end in itself is a fallacy and can cost businesses money as they sit around and wait for prices to potentially fall.

Fixed electricity pricing is based on future forward contracts. With natural gas being a significant source of electricity generation in Pennsylvania, fixed rates are highly correlated with natural gas future contracts. This means that when you look to lock in a two year fixed electricity price, the forward natural gas prices for the next 24 months have an effect on the final fixed price for power. Every month included in the duration of the contract will have a set rate the moment the contract is signed. The final fixed price will be the weighted average of the estimated amount of electricity a business is expected to use for a given month times the rate. This means if a Pennsylvania business customer decides to lock in a fixed commercial electricity rate in the middle of summer the price will take into account the cooler months that come along with the fall and spring seasons.

Locking in a fixed rate will protect Pennsylvania business customers from the volatility associated with the energy market. The fixed rate will put a ceiling on the price if the market were to rise during the term of the contract. If the market were to drop you are not necessarily stuck with having to pay a higher rate. More and more electricity suppliers are offering the blend and extend option in Pennsylvania. This allows a business electricity customer on a fixed rate product to immediately lower their rate at any point during the term of the contract in return of extending out the contract. Exercising this option will maximize the savings for the initial term of the agreement while extending out protection against the risk of a potential rise in future energy prices.

Fixed rates are the most common rate structure for those looking to get off PPL, Met-Ed, or PECO’s high default rates. One appealing feature of fixed rates is the transparency in allowing a company to forecast their annual electricity expenditures. Those businesses still on the utility default rate will have to deal with large swings in costs when the electric bill comes due. Budget certainty is a great asset to have when dealing with a volatile market. With the blend and extend option in place, Pennsylvania business customers looking to sign a fixed rate may want to consider locking in a term for several years.

For some business owners it is a simple concept; take a few minutes to compare electricity rates and end up saving between ten to 25% on a necessary business expense, the electricity bill. However, for many others the concept of electricity choice and deregulation is still foreign.

Those who have been quick to adapt to the new market are seeing the benefits with a lower PECO bill. Most competitive suppliers offer single billing which means even though a switch is made they still receive one bill a month from PECO energy. The bill includes the negotiated generation supply rate which is competitive, and the delivery distribution charges from PECO which remain regulated by the state.

Clearly Pennsylvania electricity choice is working as over 36% of business customers in the state have selected an alternative supplier, with that number being even higher, at 45%, in PECO Energy territory. The PECO Energy territory, which includes the city of Philadelphia and surrounding areas, serves the most customers out of all the Pennsylvania electric utility territories.

Over a dozen electricity suppliers are marketing their service to Philadelphia business customers. The PECO territory is one of the most active energy choice markets in the country. The high default rates combined with current low energy wholesale prices allows for competitive energy companies to offer significant discounts versus the PECO default rate. Savings will vary based on customer size and location, but nearly all PECO customers can save over 10% with current market conditions. With summer fast approaching, now is the ideal time to lock in a low fixed electric rate that will save a company money right away and protect them from potential future increases.

Current competitive PECO rates for businesses are below.

As electricity deregulation markets have matured around the country over the last several years, electric suppliers have gotten tricky on how they present their offers on contracts.  In short, the energy supply charge should include several components including the energy commodity, capacity, line losses, ancillary charges, and sometimes transmission charges depending on your specific market.   Many suppliers will show a rate that just includes the energy commodity charge, and then pass on the extra charges through another category on the bill.

Why do they do this?

Simply put, they do this to make their rate look lower than their competitors.  For example, one supplier might give a rate that includes everything for 7.5 cents.  Another supplier might give a rate that just includes energy commodity for 6 cents.  At first the 6 cent offer appears to be great.  However, when you get the bill you will see a line for the 6 cent charge followed by an additional section that has another 3 cents for all of the addition charges.  So in the end, that 6 cents is really 9 cents.

How do they get away with this?

It is all in the electricity contract!

It is extremely important to take the time to review all electricity contract offers to ensure that you are getting a true apples to apples comparison.

One of the reasons ElectricityWatch.org was set up was because I went through such a deceitful practice.  I signed an electricity contract for a fixed rate of 7 cents when in reality I ended up paying 8-9 cents per month.  During this time I could have paid a fixed rate of 6.65 cents.

Though everything is in the contract, many electricity companies have gotten very smart as to how they word their electric contracts so that the consumer overlooks important factors relating to the rate.  If you would like us to review your business electric contract, feel free to post a comment with the request and we will contact you to do so.

Keep in mind this is for business electricity customers.  Residential customers are protected by their state utility commissions from such practices.  Businesses, however, are expected to do their own due diligence.

This article pertains to commercial and industrial electricity customers in deregulated markets where Integrys Energy is active, including but not limited to Maryland, New Jersey, Pennsylvania, Connecticut, Delaware, and New York.

Integrys Energy has offered electricity contracts with misleading rate quotes to commercial and industrial customers.  If you are deciding to use Integrys Energy as your supplier it is extremely important that you either review the contract thoroughly, or work with a consultant or energy broker who is equipped to do so.

As a business electricity customer, here is what you need to know:

Every deregulated electricity state divides their bill into two basic parts, the regulated delivery part and the competitive supply part.  Depending on who is your local regulated utility will depend on how these charges are viewed on your bill.  Sometimes, like in the case of PSEG in New Jersey, the two parts are clearly divided.  Other times, like in the case of PPL in Pennsylvania, the charges are not so clearly separated.

The competitive supply portion of the bill can further be separated into several components (energy charge, transmission, capacity, line losses, etc.).  When you receive a competitive rate offer from an energy supplier, the rate should include every component of the competitive supply portion.  However, what some suppliers do is give a quote that only includes a portion, and then passes on the rest of the charges in a subsection on the bill.

So for example, you might get an offer from Electric Supplier (A) for a rate of 8 cents that includes every aspect of the competitive supply part.  Then Electric Supplier (B) might offer you a rate of 7 cents that only includes part, say the energy charge, of the competitive supply part.  The remaining part of the competitive supply part (transmission, capacity, line losses) will show up on the bill in a different section, and all of a sudden 7 cents is really 9.5 cents.

Integrys Energy practices the method of Electric Supplier (B) from the example above.  Recently I reviewed a contract that they presented to a customer.  After reviewing the contract I found that the customer would have paid exactly double to what they thought they would have paid.  This is because Integrys divided the competive supply part into two sections, and gave both sections the same exact rate.  This was extremely misleading as the implementation of the exact rate for two different sections was designed to make it appear as if everything would be charged the single rate once.  But after taking a closer look, I was able to see that there would in fact be two separate charges.

To summarize the above paragraph, had the customer signed they would have paid:

6 cents per KWh for (energy commodity)

6 cents per KWH for (capacity, transmission, line losses)

12 cents total

The sales person representing Integrys presented the rate as 6 cents.  The customer thought that the 6 cents was a great offer compared to the 8 cents offer they were getting from another legitimate supplier (the 8 cents offer was found to include the entire portion of the competitive supply part).  In reality the 8 cents should have been compared to 12 cents, and not 6 cents.

People making electricity decisions for businesses need to be aware of these deceitful practices.

A simple way to do this is to email the sales person and ask them:  Does the rate include energy, capacity, transmission, line losses, and all other components of the utility price to compare?

Anything less than a “yes” means that there will be some surprises.

Electric rates in Texas are down to levels that have not been seen since 2002 when the electricity market first became deregulated.  The downward trend in electricity prices has been a result of falling natural gas prices throughout 2010.

Both residential and commercial electric customers are benefiting from the lower electric rates.  Residential customers are signing fixed electric rates in the $0.08 – $0.09 cents per KWh range, where previously they had been as high as $0.17.  If you haven’t checked your electric bill rate in awhile, now would be a good time.  Often if you remain with a provider for a long time without signing a contract, they will gradually raise the rate even if the market does not dictate that to happen.  Your bill should clearly state the rate (cents per KWh) that you are paying.  If the rate is above 9 cents and you are not in a contract, shop for a lower fixed electric rate.

Commercial electricity customers are seeing rates below $0.05 per KWh.  This is a huge drop off from where the electricity market was just two years ago when in was not abnormal to sign a fixed electricity contract above $0.09 per KWh.  The lower electric business rates have allowed many businesses to drastically cut down on their energy costs.

PPL has posted their estimated price to compare electric rates for the first half of 2011.

The Pennsylvania utility estimates that their residential customers who are still on default electric service will pay $0.09426 cents per Kilowatt hour which is a penny less than what they are currently paying.  The exact rates won’t be known until December.  Once the exact rates are published it is our belief that the competitive suppliers will start offering a lower electric rate as well in order to attract customers who have been slow to adapt to the competitive market.

Small businesses are estimated to pay $0.09764, down from $0.10402.  Current fixed electric rates can be locked in between $0.080 and $0.085 for small business electricity customers.  Medium and large business customers have been able to negotiate rates in the $0.07s and in some cases even get down to the $0.06s.

The price to compare includes the generation and transmission portion of the PPL electric bill.  The delivery charges and still charged by PPL and regulated by the state.

Update: Residential rates are now very competitive in the PPL market, with savings upwards to 15%. Here are the best residential electricity prices we have found:

Philadelphia electricity users are customers of PECO energy, who provides electric supply service as well as electric delivery service for businesses and households in the city.  While PECO energy will remain the electric delivery company for these electric users, many customers will change their electric supply company in 2011 when PECO’s capped rates expire.

Starting January 1, 2011, commercial and industrial energy users in Philadelphia who do not choose an alternative energy company to supply their electricity needs will be on the PECO default electric rates.  Most businesses in Philadelphia will find in advantageous to shop and compare Pennsylvania electricity companies.

Large Commercial and Industrial electricity users in the PECO territory (whose KW demand is greater than 500KW) will pay a default price to compare rate of $0.0897 per kilowatt hour, if they elected to go with the fixed default electric rate.  If they did not elect for the fixed default rate, they will be forced to ride the volatile hourly ahead market rates.  Large electricity users in Philadelphia have bee offered fixed electric rates of $0.072 in recent weeks, a price 19.8 percent less than the PECO price to compare default rate.

Small and medium commercial customers in PECO will not know their exact price to compare rate until later in the year.  It is estimated it will be between $0.09 and $0.095 per KWh in 2011.  The number of electricity companies offering competitive rates to these customers will increase as 2011 approaches.  Savings are expected to be between 8-15% off of the price to compare default rates.

Update:  We have received numerous reports from our partners at Electric Rate that businesses are seeing significant savings with competitive peco commercial rates for contracts starting in 2011.

If you are looking for competitive electric rates for your home, we would recommend the below: