Electricity choice in Connecticut is clearly working as competition is forcing prices on a downward trend. Just a few short years ago consumers in Connecticut were paying the highest electricity rates in the country, causing state senators to draw up a Energy Bill to end electric choice. The bill was eventually vetoed by the governor, and with time prices have dropped.
Connecticut Light & Power customers have seen electricity deregulation and competition bring down their generation rates by more than 30%. In 2009, the generation default rate for CL&P residential customers was over $0.11 per KWh. Now, in 2012, that default rate has dropped to $0.0828, with competitive electricity rates as low as $0.0769.
Consumers who do not shop for competitive electricity pay the default rate that is offered by CL&P. Though they may not realize it, the drop is a result of increased competition. However, to maximize the benefits of Connecticut electricity choice, consumers should shop for low electricity prices.
Below are some current competitive electricity rates from Connecticut Power Companies offering service in the CL&P territory. Even after a competitive rate is chosen, the customer will still receive their monthly electric bill from CL&P, and CL&P will continue to respond to power failures and emergencies. The only thing that changes is the rate (i.e. you pay less on your monthly electric bill).
Electricity customers living in the Dallas-Ft. Worth area who were not locked into a low fixed electric rate saw their electric bills increase substantially in August and September. Due to the record high heat experienced in Dallas, power prices skyrocketed which caused consumers, on a variable rate structure, to have to pay up to three times more than normal. Consumers who were locked in with fixed rate contracts did not have to worry about the increases.
The market for power in Dallas is deregulated which allows consumers to shop among multiple electricity companies for the best deal. Consumers who choose variable rate contracts often benefit from a low introductory rate in return for the risk that prices will go high. Often these customers feel that if prices get too high they will just leave and sign with someone else. However, as was seen with Dallas power prices in the summer of 2008 and 2011, this strategy can often backfire. We recommend that all residential power customers find a low fixed electric rate to protect themselves from market spikes.
The electric utility company in Dallas is Oncor. Oncor is responsible for delivery power to Dallas homes and businesses. Even though the Oncor charges are included in the electric rate, it is important for Dallas customers to know their utility company becauses prices in Texas are offered by utility area, and the utility company is who you should call in case of an emergency relating to power failure.
Here are some low electric rates in Dallas and other Oncor areas:
Electric rates for customers in the PECO territory are increasing for consumers who have elected not to shop for competitive energy prices. These default rate paying electric customers will see the PECO price to compare raise about 5% on October 1. The price to compare rates are regulated by the Pennsylvania Utility Commission and are determined by auctions held for wholesale energy companies wishing to serve the default pool of customers in the PECO region. Revenues from the price to compare rates are passed through PECO onto the winning bidders.
The decision to raise electricity prices is not made by the PECO Energy Corporation. Instead the prices are determined by the free market at the wholesale level. Since PECO does not earn profits from the increased default rates, they are encouraging their customers to shop for lower electric prices. PECO earns revenues and profits from distribution delivery charges that are still being regulated at the state level.
Residential PECO customers on the price to compare rate will pay $0.1114 cents per KWh in October, up from $0.1042 in September. Meanwhile competitive fixed electric rates are being offered that are below $0.0900 per KWh. For PECO customers who have not shopped they have a decision to remain on default service and pay $5-$15 more per month, or shop for competitive rates and save around 20% on their monthly electric bill.
Here are some current low electric prices available in Philadelphia and other areas serviced by PECO Energy:
The ability to shop for electricity is proving consumers with multiple energy supplier options in Elizabeth, NJ. Taking the time to find competitive electric rates can result in huge savings on the PSEG electric bill.
The most efficient and time saving method to compare electric rate prices is to use an electricity rate comparison website. This allows consumers to instantly compare offers for the lowest rate, term length, and savings amount versus the utility default rate. For some customers shopping for electricity means finding the lowest electricity rate. However, the consumer should also consider how long the rate will be locked in for and how much, if any, the termination fee is.
Often the lowest rate offered will be for longer terms of 18 or 24 months. Locking in the lowest rate for two years might be the best thing for a home owner who is not planning on moving anytime soon. However, for a college student who has just moved into an apartment with a 10-month lease, the better option might be to choose an electricity company offering a low variable rate, or lock in a fixed rate for 6 months which will then change to a variable rate when the six months are up.
Power customers can also shop for renewable electricity offers where the electricity is generated from wind power farms. These electric rate prices might be higher than the lowest electric rate available, however some shoppers are willing to pay the extra charge for the ability to buy green power.
Energy choice in New Jersey has provided customers living in Elizabeth the ability to shop for all of these electricity options and more. The majority of Elizabeth electricity customers have PSEG as their utility company. Even after a competitive energy company is chosen, PSEG will continue to send your monthly electric bill, maintain the lines and wires, and charge you the distribution expenses found on your bill under the “Delivery” section. The delivery prices remain regulated by the New Jersey Board of Public Utilities and are the same no matter which electric company is chosen to provide you with your competitive supply rates.
Here is a list of current competitive electricity prices for Elizabeth customers who have PSEG as their utility (updated daily):
