Power Dallas

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:


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Fall 2011 Energy Rates Increase for PECO Customers

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:


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Shop for Electricity in Elizabeth NJ

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):


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Low Electric Rates in Chicago

Chicago electricity customers who are serviced by the electric utility company ComEd are finding low electric rates through the Illinois electric choice laws. For the first time Chicago residential consumers have the power to shop and compare electricity rates and companies. The results have been positive as consumers are finding savings on their electric bills between 10-20% versus the default ComEd electricity rates.

Customers who have not shopped for competitive power pay a default rate for their electricity supply on the ComEd bill. However, this default rate is passed through ComEd to other electricity companies who have won previously held auctions for the right to provide electricity generation service to default paying customers in Chicago and the rest of the ComEd territory. For this reason ComEd actually encourages their customers to shop and find lower electric rates. ComEd’s profits are derived from the delivery (distribution) charges found on the ComEd electric bill. The delivery charges remain regulated by the state of Illinois; no matter who you choose to supply your electricity generation, the delivery charges will remain the same.

Illinois electric choice is about giving the customer lower electric prices and more options including green energy, fixed pricing, and long term price protection contracts. It also requires electricity companies to give the best possible customer service as they compete for market share.

Chicago electricity customers who shop and choose alternative energy companies will continue to receive their monthly bill from ComEd. They will also still continue to call ComEd for power failures and emergencies. Electric choice in Illinois is no the end of ComEd, it has only changed the role they play in the Illinois electricity market. Whereas before they controlled all aspects of the electricity business, now they are only in the business of delivering electricity to their 3.6 million customers. If you are a ComEd customer today you will continue to be a ComEd customer even after you choose who supplier your electric generation service.

Here are some current competitive electric rate prices in the ComEd territory (updated daily):


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Low Electric Rates in JCPL

Residential customers who receive their monthly electric bill from JCPL can find savings above 10% by taking the time to shop and compare electricity rates in the competitive NJ energy market. The New Jersey Electric Choice and Competition act is providing power options for both residential and commercial customers. There are variety of options in the New Jersey competitive market. Customers can choose to lock in a fixed rate for savings and price certainty, or they can choose a variable rate with the option to switch suppliers at any time. Green power options are also being offered because of the NJ Electric Choice act.

Having the power to shop power companies is still a new idea to most electricity customers in New Jersey. Less than 8% of JCPL residential customers have switched electric suppliers despite competitive rates that are more than 10% lower than JCPL residential default rates. New Jersey is hoping that their electricity market matures like the Texas market did over the last decade. In Texas, Houston energy customers can choose between over twenty electric companies and over 50 electric rate offers.

The default rates offered by JCPL are generation supply rates that JCPL charges to customers who have not participated in energy choice. These rates are determined by a series of auctions that begin three years prior to the current current year. In other words, default rates being offered in 2011 are determined by auctions that occurred in 2008, 2009, and 2010. Switching electric companies does not end the customer relationship with JCPL. JCPL remains the electricity delivery company for all of their customers regardless of which competitive electricity generation supply company is chosen.


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Electricity Savings in ComEd

Residential electricity customers of ComEd are seeing rate savings by competitive electricity companies for the first time since the Electric Choice Laws in Illinois were established in 2007. With ComEd price to compare rates having been established through May 2012, customers can look at competitive electric rates and see clear savings that will show up on their monthly electric bill.

People can find lower ComEd rates by shopping for competitive electric rates at online energy comparison sites. Current savings are well above 10%. The ComEd price to compare includes electricity generation and transmission charges. The distribution rates found on the ComEd electric bill continue to be regulated by the Illinois Utility Commission and charged by ComEd. Choosing a competitive electricity company for electricity supply is simply about finding and paying a lower electric rate. When a switch is made there are no service interruptions and you continue to receive your monthly electric bill from ComEd.

The misconception about electric choice in Illinois is that by selecting an alternative electric company you are leaving ComEd. The reality is that you remain a ComEd customer no matter who you choose for electricity generation. Furthermore, ComEd does not profit off of the default price to compare generation rate, they simply pass on the revenues from customers to electricity companies. ComEd does not care if their customers shop for competitive rates, their profits are earned from the regulate distribution charges.

Electric suppliers have started to enter the ComEd market and offer products to residential customer, and more are expected over the next year as ComEd becomes an active residential electric choice market.

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United Illuminating Electricity Shopping

Electricity customers being serviced by United Illuminating (UI), a utility company servicing southern Connecticut, are shopping for lower electric rates as prices in the competitive market have become much lower than UI default rates.

United Illuminating power company offers a default rate of 10.62 cents per KWh for their customers who have not done power shopping. Customers who compare electric rates will find savings of 10% or more. The high UI default rates has made the United Illuminating territory attractive for competitive electricity companies to enter the market, causing prices to go down further.

MX Energy is the leading competitive supplier in the area with more than 19,000 UI customers. When UI customers choose an alternative supplier for their electric generation supply, UI continues to deliver the power and send the monthly electric bill to the customer. Electricity shopping is purely about finding savings and getting a lower rate on the monthly electric bill. Nothing else changes when a switch is made; there is no interruption of service and no one has to come to your home to adjust any lines and wires.

Here are some current competitive electricity rates for United Illuminating Customers:


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Philadelphia Electricity Rates

The vast majority of Philadelphia electricity customers are serviced by the utility PECO Energy.  At the beginning of 2011 PECO customers had their electric rates, which had been capped since 1997, lifted.  This launched the beginning of true electric choice in the area.

PECO energy customers have the ability to shop and compare electric rates, which  have been resulting in electric bill savings for thousands of Philadelphia residences and businesses.  Customers can compare competitive electricity rates in Philadelphia against the PECO price to compare.  PECO default rates increased in July, making competitive electric rates even more attractive.

Competitive Philadelphia electricity rates are providing as much as 18% savings versus PECO default rates for residential customers, and between 10-20% savings for business electricity customers.

Below are current PECO Residential Electric Rates



Below are current PECO Business Electric Rates


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Energy Price Comparison

Performing an energy price comparison among different energy companies and their offers is not always as simple as it may seem.  If you are shopping for competitive energy prices you may not always get apples to apples rate comparisons, especially if you are doing electric rate comparisons for a business.

Increasingly competitive energy suppliers are finding creative ways to structure their rate offers which makes customers appear to be signing contracts for unrealistic low rates, when in truth the contract has many additional charges that show up on the electric bill.

In order to protect customers, New Jersey and Pennsylvania post their “Price to Compare” rates which are the default rates offered by the utilities that competitive suppliers are supposed to offer their rates against.  Most people understand that with electric choice, the bill is now divided into two sections:  the competitive supply section, and the regulated delivery section.  The “Price to Compare” rate that utility companies (PP&L, PECO, PSE&G, JCP&L) publish are the entire supply component of the bill.

The supply rate for energy is broken down into more smaller components.  Some of these charges, such as transmission and capacity, will often be displayed on the bill.  Other components, such as line losses and congestion fees, are charges that are not stated on the bill but are blended into the price to compare rate.  However, competitive suppliers will take out these charges and present their rate to a customer that only contains the energy commodity.  The remaining charges will show up when the customer receives the bill.

This practice makes offers seem significantly less than the utility price to compare.  Unfortunately, often when the bill shows up those extra charges push the rate well above the default price to compare.

It is important to understand that in most energy choice markets, business customers can save money on their bills through shopping and comparing offers.  However due diligence needs to be done and the contracts read.  If your staff is unable to do this themselves they should consider working with an energy consulting firm or use a electricity comparison site that presents all offers equally against each other and against the utility’s current price to compare rate.

Here is some information on specific price to compare rates:

PPL:  The price to compare includes the energy rate and transmission rate that are posted on the PPL website.  The rates also include a GRT tax that is 5.9%.  Current PPL commercial rates increased by 33% on June 1.

PECO:  The price to compare includes the energy rate and transmission rate that are posted on the PPL website.  The rates also include a GRT tax that is 6.06%.  PECO commercial rates will increase by 9-11% on July 1.  PECO residential rates will increase by an average of 10% on July 1.

PSEG:  The official term for the price to compare in New Jersey is Basic Generation Service (BGS) rate.  The BGS rate for PSEG businesses is a little complicated because they use different measurements for different charges.  They charge a per KWh rate for energy commodity, and then a dollar per KW demand for transmission and capacity.  This causes the total BGS to change slightly from month to month.  To get an overall idea of what your BGS default rate is, take your total supply charge and divide it by the total KWh amount for that month.  All of this is stated on the bill.  Then you can compare competitive rates against the total BGS rate to see what type of savings are available.  Keep in mind that BGS rate include a 7% NJ tax.

JCPL:  The official term for the price to compare in New Jersey is Basic Generation Service (BGS) rate.  The BGS rate includes energy and transmission charges.

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PPL Electric Rates on the Rise for Businesses

On June 1, generation electricity rates will increase by 33.4% for over 100,000 businesses who are serviced by the central Pennsylvania utility company PPL (Pennsylvania Power and Light).  Business customers who have not done their electric shopping and have taken the time to compare electric suppliers will see their generation supply rates increase as the state regulated default rate will increase to 13.028 cents per Kilowatt hour from the current rate of 9.766.

The default electric rate, termed price to compare by the Pennsylvania Utility Commission, was expected to have only increased to just over 11 cents.  However, due to a higher than expected last auction for the default customers, the rate was pushed up.  Authorities at the Pennsylvania Public Utility Commission along with upper management officials at PPL are urging business customers who have not done electric price comparison to get out and find a lower electric rate.

PPL does not profit from the default price to compare rate that is charged to electricity customers who have not chosen an alternative supplier.  Instead that rate is passed through PPL by competitive electric suppliers who have won auctions to supply energy to a percentage of the default rate payers.  Many people who have not participated in electricity choice have decided to do so because they want to remain a PPL customer.  The reality is that they are already buying their electric power from other companies that are not PPL.  PPL simply passes through those revenues to the winning bidders at the auctions.  Furthermore, PPL remains the regulated utility company for all of their customers.  This means that no matter what rate a customers chooses, they will still receive their power by PPL through their transmission and distribution services.

The 33.4% electric bill increase will certainly be a shock to many business customers.  Even with the old 9.766 rate business customers were able to find lower electric rates below 8 cents that resulted in savings greater than 15%.  Electricity savings will be available for commercial customers.  However it is important to carefully review any electricity rate contract that you decide to sign.  Many suppliers have been offering rates that have hidden charges.   If you are comparing electric rate offers in Pennsylvania, ask to see a rate that includes the entire price to compare component, including the GRT tax.  The 13.028 cent default rate includes energy, transmission, capacity components, and the GRT tax.  The only thing that the rate shouldn’t include are the regulated distribution charges.

Competitive PPL rates can save businesses as much as 35% against summer price to compare electric rates.  If ever a time to learn about electricity choice, now is that time for PPL businesses.

Here are some competitive electric rates and the savings compared to the high business PPL default rates:


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