Electricity prices for PECO customers are set to drop in July, but not before a slight increase in June. Small power users, those who use less than 500 KWh a month, will not be effected by the June increase. The increase will only effect power users who use more than 500 KWh a month, which is normally anyone who lives in a two bedroom apartment or larger.

Consumers who use an average of 1,000 KWh a month will see their electric price drop from 10.06 cents in May to 8.9 cents in July. These electric prices are for customers who are still paying the PECO default rate and not for those paying competitive rates with alternative energy companies. While consumers paying the default rate will see their electric price drop to 8.9 cents, those willing to shop the competitive market can find low electric rates in PECO at prices below 8.0 cents.

At this point in time there is really no reason for PECO Energy customers to not shop for lower electricity prices. With over 40% of households now buying their power from competitive energy companies in PECO, the region has proved in can sustain itself in a competitive market, and customers are seeing the benefits with lower monthly electricity bills. While the PECO price to compare prices will be dropping this summer, even lower electric prices can be obtained through the Pennsylvania competitive electricity choice market.

Here are current competitive electric prices in PECO, prices are updated in real time.

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:

Connecticut energy customers in the state’s largest electric utility, Connecticut Light & Power (CLP), can reduce their electric bills by shopping for competitive electricity prices. CLP is the regulated electric utility for all of Hartford.

Hartford energy customers who do not choose their electricity supplier pay a generation service default rate through CLP. Even though the default generation rate was reduced 14% from 2010 to 2011, even lower electric rates can be obtained for those consumers who take the time to learn about Connecticut electricity choice and find the lowest prices available in the competitive market. CLP remains the power delivery company for all of their customers including those who select an alternative electricity company. The Connecticut energy choice law has unbundled CLP from a full service electricity generation and delivery company to just a regulated electricity delivery company.

Choosing an alternative energy company in Connecticut does not affect the quality of power that you receive. As the local utility company in Hartford, residences will continue to receive their monthly electric bill from CLP even after thy select a less expensive electricity supplier.

Here are the lowest electricity rates in Hartford, CT (updated daily):

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):

Residential electricity customers in Philadelphia and surrounding areas in southeast Pennsylvania are finding good savings on their PECO energy bills through electric competition.  Customers in the area seeking to compare electricity prices will find savings versus the PECO price to compare rates of 2011.

Below are two electricity companies offering electricity rates that are lower than the current residential PECO default rate.  While the savings are relevant, they do not even take into account that PECO rates are estimated to increase by another 10-15% this summer according to www.peco.com.  Locking in a fixed rate will protect customers from these increases.

The default prices for PECO electricity will change every three months and are based on a series of auctions.  Some competitive electricity companies are able to offer savings compared to the PECO rates partly because PECO has to include a premium in their pricing when they buy the energy on the wholesale market to offset the uncertainty of how many customers they will have.  Competitive electricity companies do not have to include this premium in their pricing since they are able to purchase power on the wholesale market for the retail customer one at a time.

Compare PECO Rates:

PECO energy announced earlier this month that residential electric rates for their customers will increase on April 1, 2011 to 10.16 cents per KWh.  Customers in PECO energy territory recently experience rate hikes to 9.92 cents on January 1 when capped electric rates were lifted and the area became a fully competitive electric market.

With capped rates now lifted, PECO energy will adjust their electric rates for their residential customers every three months.  The rates will be based on the market prices.  It is important for people living in Pennsylvania to understand just how quick electric prices can increase.  There are roughly 1.4 million electricity customers in the PECO area who are now facing electric choice for the first time.

Customers should consider locking in rates so that they do not face the surprise of their electric bill doubling or even tripling in the summer months.  That is precisely what happened to many Texas electricity customers in July and August of 2008 when electricity prices tripled in just a few months, right in time for the summer peak electricity demand season.

There are over a dozen electric rate options for PECO customers looking to compare electric offers.  It is recommended that customers choose a fixed rate to protect themselves from potential increases.

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.

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.

Residential power customers are seeing the benefits of electricity deregulation first hand as the electric bills for those electric consumers who have shopped the market are dropping.  Connecticut electric companies are allowing customers to save on their monthly electric bills by offering lower electric prices compared to the default Connecticut electric rates.

CL&P and UI, the incumbent Connecticut Electric Utilities, offer high default electric rates known as the “price to compare”.  The Connecticut Electric utilities do not profit off of the default rates but are mandated to offer the rates to those electric customers who do not choose another Connecticut electric supplier.

Those Connecticut electric customers who do compare electric offers, both residential and commercial, are seeing significant savings on their electric bill.

Connecticut electric residential customers can save an easy 11.5% by locking in a rate with MX Energy of $0.0979 /kwh compared to the residential default rate in the CLP territory of $0.011051.

Positive Energy offers a “no contract” option with a current introductory rate of $0.1006 /kwh.  The no contract option allows you to leave Positive Energy service anytime and go back to the CLP default rate if you wish to do so.

The Connecticut Electric utilities continue to bill the electric customers and control the lines and wires.  When Connecticut electric customers choose another electric supplier, the only thing that changes is the actual rate they pay, everything else from billing to service remains the same.

For electricity business options in Connecticut, email us for a comparison sheet and savings analysis.

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.