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.
Electricity prices in Houston and its surrounding cities have dropped to low levels. When Houston residences compare electric companies they can find fixed electric rates under 10 cents per kilowatt hour for up to twelve months or even lower electric rates for shorter terms.
Houston commercial electric rates are in the six cent per kilowatt hour range for one year terms. Just two years ago many commercial electricity customers were signing fixed electric rate contracts above 10 cents. Though current longer term contracts (24 and above) are a little higher than short term (12 months and under) rates, many businesses are signing longer term electricity contracts in order to protect themselves from the potential of rising electricity costs in the coming years.
The electricity market is unpredictable causing many commercial electricity customers to want to limit their risks by locking in the lowest electric rate they can for the longest period of time. The alternative can be seeing their electric bills double in a very short time period.
Residential electric customers in Houston are taking the same strategy signing fixed electric rates for as long as electricity companies will allow, which is usually 24 months.
Here are the lowest electric rate offers that we found in the Houston area:
Centerpoint area -
Jersey Central Power and Light (JCPL) electricity customers are seeing some of the lowest electric rates since the utility deregulated back in 2003.
The basic generation service, the JCPL default rate, will be $0.110285 per kilowatt hour from October 1, 2010 through May 31, 2011 for small and medium businesses. From now through the end of September it will be even higher at $0.115462. Solid 10-15% exist for these businesses who shop and compare commercial electric companies.
Meanwhile, New Jersey residential electric customers in JCPL are paying high default rates of $0.1172 a kilowatt hour. For the first time since 2003, these electricity customers can save money by finding a lower electric rate through a competitive electric company. Click here for the lowest JCPL residential electric rate that we were able to find.
Residential and business customers can find their current default electric rates on their JCPL bill at the top next to BGS Energy Charges and BGS Transmission Charges. The combination of these two charges make up the total price to compare default rate. When you choose an lower priced electric provider, their low electric rate will take the place of those two charges.
Depending on the electricity company, you will continue to receive one monthly electric bill from JCPL with the lower rate, or you might receive a bill from the electricity company for the supply charges and one from JCPL for the delivery charges. Either way, you will save money as long as you sign for a electric rate that is lower than the JCPL BGS default electric rate.
Commercial and industrial electric rates change on a daily basis. For a list of low commercial electric rates in New Jersey email us with the request and we will email you back a list of electricity companies and their electric rates.
Large commercial and industrial electricity customers in PPL who are on a variable rate will see an increase on their electric bills in August due to an increase in their kilowatt hour cost. Many PPL (Pennsylvania Power and Light) commercial customers who are on default service and are under the PPL rate class of MP, MT, or L5 have their rate directly tied into the wholesale energy market.
From January until June 2010 these default customers have enjoyed low default rates as the wholesale prices have averaged between $0.06 and $0.08 cents per kilowatt hour over the period. However, in July these rates got out of hand and were as much as $0.30 cents per kilowatt during some hours. Many of these MP and MT rate class customers can expect their kilowatt hour cost to be above $0.10 when their August bill arrives.
These large commercial and industrial energy users did not have an incentive to shop the competitive market for low electric rates because the floating rate that they were receiving were so low. Now that these variable rates have increased, many of these commercial electricity customers will shop the market for low fixed electric rates from an electricity company offering competitive supply rates. Large commercial electricity customers can find fixed rates as low as $0.073 per kilowatt hour, which can help these customers budget against volatile energy prices.
Current wholesale prices for electricity for PPL can be found at www.pjm.com
