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:
