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:
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 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.
Energy competition and choice has created low prices options for businesses in Philadelphia. The local utility in Philadelphia, PECO, recently raised their supply default electric rates by 10% on average. The default rates are the PECO price to compare prices businesses pay who have not shopped for low electric rates.
Despite the energy price increases for price to compare customers, competitive electric rates have stayed low despite increased volatility in the natural gas market. Businesses in Philadelphia can lower their electric bill by as much as 25% if they take the time to find low electric rates in PECO.
Electricity shopping is going on in the PECO electric utility region which includes the city of Philadelphia. According to the Pennsylvania Public Utility Commission 40% of PECO commercial customers are receiving their electric supply from an alternative supplier, with 56% of the total electricity consumption going to alternative suppliers. This shows that the highest power consumption customers are the ones doing the electric shopping. Many small businesses are still unaware of electric choice in Pennsylvania. It is these small mom and pop shops that can sometimes use the savings the most, and low competitive electric rates can provide those electric bill savings.
Many people have compared the success of the Pennsylvania electric choice market to that of Texas which is widely considered the most successful energy choice state. Texas, which deregulated their electricity market in 2002, had a 58% switch rate five years after competition began. Today Dallas energy customers have dozens of electricity companies to choose from, including a variety of green power options. After only 7 months of true electric choice, PECO has reached a 20% residential customer switch rate.
Update PECO Commercial Rates:
