Electric choice options are heating up in some markets as we begin to enter the high energy summer season. Customers who use websites to perform electric price comparisons will give themselves access to the most options and highest electric rate savings.
In Philadelphia, electricity customers of PECO energy are experiencing electric choice for the first time and a surprising number of residential and business customers are power shopping for lower energy rates. PECO energy default rates are going to rise in the summer which has prompted people to explore electric rate options quicker than some had expected. Because PECO default rates change on a quarterly basis initial savings have not been huge, but people are starting to see that locking in a low electric rate can be beneficial as it protects you from future increases. The other side of that argument is that default rates can go down causing you to be stuck paying a higher electric rate with another electric supplier. While this a possibility, historic energy prices have shown that rates tend to go up in the summer. Unfortunately, it will probably take a large energy spike for some people to start looking into their electricity choice options
In Texas, which has enjoyed a competitive electricity market since 2002, thousands of customers who had not previously power shopped saw their electric rates triple in the summer of 2008 due to rising natural gas prices. Electric customers who had previously locked in low rates were not effected by the increases. Today the majority of Texas electricity customers are in some type of electric supply contract.
New Jersey electricity customers are also getting low electric rate offers that can protect them from summer rate increases. Performing an energy comparison of all the offers will allow electricity customers to get the lowest offers with the best promotional offers. Promotional offers as high as a $75 gift card are available in New Jersey.
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:
The time and energy that it takes to compare electric rates can be overwhelming for some. However, with a little research and education, customers in Texas, Pennsylvania, New Jersey, Maryland, Delaware, and Connecticut can lower the cost of their electric bill by comparing electric rate offers from electricity companies against the electric rates of the local utility.
Electricity customers attempting to compare electric rates should look at a few key elements for every offer:
1. Is the electric rate fixed or variable. A fixed rate will secure the electric rate for a set period of time as stated in the electricity contract. Variable electric rates will usually have low introductory offers, but will contain to guarantee as to how high the rate can go.
2. Meter charge. A large meter fee (anything above $5) can make a rate appear low when really the electric company is just charging you more in another area of the bill. The average size house uses about 1000 KWh a month. A rate of $0.09 per KWh will equal a $90 bill. Adding a $10 meter charge would be the equivalent of adding a whole penny ($0.01) to the rate. So a $0.09 cent rate with a $10 meter charge is the same as a rate of $0.10.
3. Is any proportion of the energy you buy derived from green energy sources? Some people are only concerned about the price, but if you are interested in helping you environment you can request a portion of your energy to be generated from green energy (usually wind power). There are 100% wind power electric contracts available, but usually you will be rate that is a little higher.
These are three of the main things to consider when taking the time to compare electric rates.
For a list of pre-screened electric rate offers, visit our ELECTRICITY PRICES section to find low electric rates in your state.
PPL electricity customers continue to find savings on their electricity bills.
Since capped rates expired at the beginning of the year, more and more PPL customers have started to shop for third party electric suppliers to save money against the high PPL default electric rates. People are discovering that there are significant savings available for taking the time to compare electric providers.
Businesses especially have benefited from the competitive electricity market. Large businesses who spend over $10,000 a month are saving as much as 30 percent in some areas. Meanwhile, PPL residential customers are saving a more modest 10-18 percent through various electric companies.
While PPL default electric rates are expected to decrease in 2011, current electric rates are well below the 2010 default prices and less than what the 2011 rates are expected to be.
The Pennsylvania competitive electric market has provided a number of product options for electricity consumers, including low variable rates and peace of mind fixed rates.
Right now, the lowest residential electricity offer is $0.08884 per kilowatt hour, a 15% savings off of the default rate. That rate is being offered by Champion Energy, who recently won an award for Customer Satisfaction in Texas. Champion offers consolidated billing in the PPL area, which means that their customers still receive their bill from PPL electric. The only difference is that instead of paying the $0.1044 PPL rate for Generation and Transmission, they will pay $0.0884. The delivery charges remain the same.
