Electricity choice in Pennsylvania allows for alternative power companies to solicit customers who previously did not have choices when it came to who do buy their power from. The program seems to be working as more power companies continue to offer service in the state, resulting in lower electricity prices for energy shoppers.

Electricity customers can compare several rate offers at electricity comparison sites designed to help consumers compare electricity rates, as well as learn about energy choice and current default price structures.

Energy consumers who do not select an alternative supplier pay a default rate with their local utility company (PECO, PPL, Duquesne). The default rates – price to compare – are based on a series of auctions that have previously been held. Choosing a lower priced supplier simply means a lower monthly electric bill, from the same local utility company. Energy choice seems to be working as prices continue to fall, companies expand, and customers adopt to their new choice by shopping. It is becoming more difficult for incentivized politicians to argue against the Compete Coalition, an organization who supports nation wide energy choice programs.

PECO electricity customers will see an increase on their electric bills on June 1, followed by another increase on July 1.  Households who receive their electric bills from PECO, an electric utility company who serves most of Philadelphia and the surrounding areas, will be raising their electric rates for customer who are paying the default price to compare rate.

The PECO energy area transitioned to full electric choice at the beginning of the year (2011).  PECO still manages the maintenance of the lines and wires and continues to send their customers the monthly electric bill.  However, PECO is no longer in charge of providing low electric supply rates to their customers.  They only charge regulated fees for the delivery of the power.  They have also been given the responsibility by the state to provide customers who have tno shopped for electricity rates a default supply rate.

These default supply rates will be rising in the summer, however customers can protect themselves from these increases and save money compared to what they are currently paying by selecting a lower electric rate.  The great thing about electric choice in Pennsylvania is that even after a customer chooses a low electric rate, they continue to receive their monthly electric bill from their local utility company (PECO, PPL, Duquesne Light).    Pennsylvania residential electric rates options are available for customers looking to save money and enact their power of electric choice and competition.

Currently customers pay 9.99 cents for electric supply.  On June 1, customers who use more than 500 KWh, which is nearly everyone who lives in a home larger than one bedroom, will see their rates increase by 12% for all consumption above 500 KWh.  On July 1, another increase of about 3-4% on top of the June 1 increase will occur for every KWh consumed by residential customers.

Below are some current competitive offers, all of which are below the current 9.99 cents.  You will save between 10-18% versus the high summer PECO default rates by choosing one of the low electric rates below.  We recommend signing a fixed rate because savings will be guaranteed, as opposed to a variable rate where the rate can change in any given month.

Customers of the Pennsylvania electric utility PECO energy will want to shop and compare electric rates very soon in order to prevent a large energy bill spike this summer.  With gas prices already on the rise and  expected to continue to increase, it is imperative to the personal finance of these energy customers to find lower electricity prices.

For a electricity consumer who uses 1000 KWh a month, the supply portion of the PECO electric bill will increase by more than 10% going from 9.99 cents to over 11 cents starting on July first.  Customers who use more than 1000 KWh will have even higher rates.  PA electric choice is providing savings opportunities for customers, but finding those deals has proved to be difficult for many consumers.

Fortunately, electricity price comparison web sites like www.electricrate.com give PECO energy customers a variety of energy choices with savings and promotions easily identifiable.

Finding a lower electric rate will not take you away from being a PECO energy customer.  PECO energy will continue to serve as your local utility delivering the power to your home or business.  With the Electric Choice Act in effect, PECO no longer is involved in the business of offering competitive generation rates.  They instead only focus on the reliability and maintenance of the power lines and wires.  They are however, mandated by the Public Utility Commission to offer default rates to customers who do not shop for competitive rates.

Electricrate.com provides an easy platform for customers to do energy shopping and compare electric rates being offered to the PECO price to compare default rate.  Current savings of 10-16% are available versus the summer PECO default rates.

Electric bill savings can also be found for Pennsylvania electricity customers who are serviced by the utilities PPL Energy in central Pennsylvania and Duquesne Light in the Pittsburgh area.  As is the case with PECO energy, these energy consumers will remain customers of their respective utility companies no matter which electric supplier they choose.  It is simply about saving money on the electric bill; if you can find a lower rate compared to the default rate then you should switch.

Even after a customer chooses a lower electric rate, they will continue to get their monthly electric bill from their local electricity utility company (PECO, PPL, Duquesne Light).

Electricity rate savings are also available for small businesses throughout the state.  Small business customers of PPL in particular have huge savings potential.  Businesses who have not switched suppliers, and thus are still on the PPL default service, will see their electric bills increase by 15% on June 1 if they do not take action.  If they do shop, they can find savings of about 15% off of current default rates.  If nothing is done the business electric rate will be above 11 cents.  If they shop and compare rates, then they will find competitive electric rates below 8.7 cents.

While most of the marketing efforts of competitive electricity suppliers have been focused on the territories controlled by PECO Energy and PPL Energy, customers of Duquesne Light are finding the largest savings against their utility price to compare default rates.

Duquesne Light customers, who currently have a supply default rate of 8.89 cents, can currently lock in a 24 month rate as low as 7.19 cents which will yield a savings of 19% on the electric bill.  While customers new to electricity choice might be hesitant to lock in a rate for two years, it is important for them to understand the benefits of long term fixed electric contracts.  The fixed electric contract will save customers money right away and protect them from potential default rate increases in the summer and in 2012.  Electricity customers can also lock in for a shorter term at 12 months at a low rate of 7.55 cents resulting in a healthy 15% electric bill savings.

PECO electricity savings and promotions are expanding in the Philadelphia area as suppliers compete for market share.  The PECO territory saw electric price caps expire on January 1 which has opened the door for alternative electric suppliers to offer rates to PECO default rate payers.

Duquesne Light saw their rate caps expire several years ago.  However electric suppliers were slow to enter the market due to the low default price to compare rates that the utility was offering their customers as a result of an auction they held among wholesale energy suppliers.  Now that those default rates are higher than what retail electric suppliers can offer, electricity companies have started to offer service to customers as they can now offer lower electric rates and electric bill savings.  Customers who switch electric suppliers will still receive their monthly electric bill from Duquesne Light.  The only difference will be the lower electricity rate on the bill.

Current Duquesne Light competitive offers:

Customers of the electricity utility company Duquesne Light can save big money on their electric bill by shopping for lower electricity rates.  Duquesne Light, which serves the Pittsburgh and surrounding areas, raised their price to compare rates in January 2011.  The price to compare rate is the electric default rate that the state of Pennsylvania mandates Duquesne charge their customers who have not chosen a competitive supplier.

With Pennsylvania now a fully deregulated electricity state, Duquesne Light is now just the local electricity delivery company.  Residential electricity customers in the Pittsburgh area can save as much as 19% on their electric bills by signing a fixed electric rate with a competitive supplier.  Customers will still receive their monthly bill from Duquesne Light, the only difference will be that instead of paying the high default rate of 8.89 cents per kilowatt hour, they can pay a rate as low as 7.19 cents.

As of January 2011, 21.3% of Duquesne residential customers have switched electric suppliers.  That number is expected to increase as the saving potential for these customers has recently increased.

Check out current competitive electricity rates in the Duquesne Light area:

Commercial and residential electricity customers have a number of options when it comes to choosing an electricity company for their supply rate in Pennsylvania.  In areas where the capped rates have already expired, such as PPL and Duquesne Light, there are over 20 electric providers actively offering service.  Choices are more limited in areas where the capped rates have not expired, such as PECO, but are expected to increase rapidly when those capped rates expire on December 31, 2010.

With so many options you might be wondering…..What should I look for in an electricity company?

Obviously the electric price is going to be the most important thing for most people, and that price is measured in a rate per kWh (kilowatt hour) which is the measurement for electricity usage.  For residential customers the Public Utility Commission does a good job of making the providers stay honest forcing them to include all components of the rate (including taxes) so that you can compare offers apples to apples.  However, there are some things the consumer should know:  Is the rate fixed or variable; Is there a meter charge; What is the cancellation fee; Can I reach a representative by phone or is everything done via email.  These are important questions to ask a electricity company when deciding whether or not the savings they are offering are going to be worth it to you.

As of the posting date of this article, the lowest residential fixed and variable rates are:

Current PPL Rates

Current PECO Rates:

The fixed rate will guarantee a residential customer savings over the utility default rate during the term of the agreement.  The variable rate will will not guarantee such savings, however the savings should be available for at least the near future unless unforeseen events occur that can disrupt the energy markets at the wholesale levels such as a natural disaster.  However, customers are not locked into a variable rate for any specific time period, so they can leave if the rate was to get higher than the default rate.

Commercial electricity customers have to worry about the above concerns plus a whole new set of possible traps.  Commercial companies have access to a variety of products and contract concessions that residential customers will not see.  If educated, these business energy consumers can greatly benefit from electric choice, but they need to be careful about traps that companies can insert into the electric contract.

Due to the fact that commercial customers are individually priced with electric providers, the “best price provider” for business electricity is constantly changing and is dependent on the customer’s specific usage demand patterns.  To get the best rate offer, a copy of a business electric bill is needed.

All in all, there are a number of electricity companies in the Pennsylvania market offering beneficial rates and contracts for both residential and commercial electric customers.  The more you understand about the electric competitive market, the more you will benefit.