CT Energy Savings

Connecticut consumers continue to benefit from the state’s decision to deregulate their electricity market several years ago. Electric choice in Connecticut is providing energy customers with lower prices and more options when buying their electricity.

Almost everyone in Connecticut is serviced by either Connecticut Light & Power (CL&P) or the United Illuminating Company. Prior to CT Energy Choice these two utilities were regulated monopolies of electricity generation, transmission and distribution. The decision to create an energy choice market changed the role of CL&P and United Illuminating Company for their customers. Now they are only responsible for the transmission and distribution of electricity and are no longer in the business of offering generation rates to customers. Consumers can shop for competitive generation electric rates to find the offer that best fits their needs.


Consumers who do not shop for lower electricity prices pay a default rate that is charged by their utility company and regulated by the state. The default charge is determined by a series of auctions that the state holds for competitive energy companies who bid to serve a certain percentage of default paying consumers. While the money for default generation rates are collected by the utilities (CL&P and United Illuminating), the revenues for these charges are passed through to the energy companies who have won the previously held auction. Electricity choice is about customers getting the best deal that they can find, and not settling for a default rate.


While Connecticut has been a very successful energy choice state, the majority of customers are still paying high default electric rates. Less than 40% of CL&P residential customers and only 45% of United Illuminating residential customers have chosen to purchase energy from alternative suppliers. Currently CL&P default paying customers can save 10% on their monthly electric bill by choosing a low cost electric supplier. United Illuminating consumers can save as much as 20% versus their default generation prices.

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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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PSEG Summer Electricity Savings

PSEG electricity customers can save as much as 17% on their electric supply bills by selecting an alternative electric supplier. Electricity shopping has been picking up steam in recent months as more competitive electricity companies have filed and received electricity supplier licenses from the New Jersey Board of Public Utilities. However, many consumers are still uninformed that New Jersey in now an electric choice market, and even more are uninformed about just how much they can save.

In the past, surveys done in New Jersey regarding market awareness on electric choice has shown that many people just don’t want to go through the “hassle” of shopping for electricity because the end result is only a few dollars a month in savings. However, as competition has heated up and pushed competitive pricing down, the savings are now becoming quite more significant, especially for medium and large houses.  In the past, electricity savings in New Jersey had been  reserved for the largest commercial and industrial customers in the state.  Things have certainly changed as more and more alternative suppliers compete for the 3.3 million New Jersey residential electricity consumers.

PSEG customers using 1,000 KWh would save $20 a month ($240 per year) by choosing the lowest rate available compared to the PSEG default rate.  Homes using 2,000 KWh would save more than twice that ($46.60 a month and $559.20 a year) because PSEG default rates get higher the more power you consume.  A good rule of thumb for figuring out your average monthly KWh is to figure you will use 1 KWh for every square foot of home (1,500 square foot home would use 1,500 KWh average per month).

 

 
Current Rate Offers From Competitive Suppliers (Updated Daily):


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Electric Price Comparison

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.

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Electric Choice Provides Summer Savings in PPL

Small businesses serviced by the utility PPL in central Pennsylvania will see their electric rates increase by 33% on June 1, 2011.  The current default electric rate of 9.766 will increase to 13.028.

Business customers who have participated in the PA electric choice program will not be effected by the electric rate increase.  The higher price is for the price to compare, or the default electric rate given to consumers who have not yet chosen a competitive electric supplier.  Cheap business electric rates are available for PPL customers who have not yet shopped for competitive electricity rates.

PPL Competitive Commercial Electricity Rates


The higher energy prices in the summer are expected to increase electricity shopping in the PPL region.  As of April 1, 56% of small businesses serviced by PPL had not switched suppliers and instead remained on the PPL price to compare electric default rate.  With current saving of 10% and more in the competitive electric market, the increased default rate will present and even bigger energy savings opportunity for businesses who won’t be able to afford to allocate more money on their electric bills.

Electric choice is still a new concept to many consumers.  Many business owners do not fully understand the benefits of choice and would rather stay with PPL, a company who they are familiar with.  The important fact that these commercial energy customers are missing is that PPL, as the local utility, continues to deliver the power to their customers regardless of the electric supplier chosen.  This distinction between electricity supplier and electricity utility (delivery company) has caused confusion to many customers in energy deregulated markets.

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Delmarva DE Electricity

Delaware has a deregulated electricity market.  What does this mean?  It means that the local incumbent utility Delmarva, which was once a regulated monopoly controlling all aspects of electricity service – generation, transmission, distribution – is now only in charge of distribution (they are just an electricity delivery company).  The state mandates that they offer all of their customers a generation default rate for those customers who do not choose an alternative supplier.

Even though Delmarva offers a default generation rate, they do not profit off of these charges.  Their only profit is derived from the delivery charges that are still regulated by the state.  Because of this fact, Delmarva not only does not care if their customers choose a competitive electric supplier, but actually support it.  They want all of their customer to purchase their generation electric service from alternative suppliers so that they can focus their attention on the management and reliability of the electric lines and wires in the state.

Customers looking to shop for competitive electric rates can use the Delmarva default rates (Price to Compare) to determine if the offers they receive are worth signing a contract.  Current competitive electricity rates are showing good savings (8-20%) versus the default rates over the last several years.

Delmarva default rates change about every 4 months.  It is important for Delmarva customers to realize that signing a fixed electricity  contract is not only about saving money off of the current default rate, but also about price protection into the future.  It is possible that the future default rates can become lower than the fixed rate that you signed.  However it is possible, and more likely, that they can drastically increase.  Fixed rate contracts are designed to offer customers with budget certainty giving them electric rate protection.

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Duquesne Light Customers are Finding Lower Electric Rates

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:


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PSE & G NJ Rates

PSE&G electricity customers in New Jersey paying basic generation service rates, the PSE&G default rate, are paying among the highest electric rates in the country.  The basic generation service rates are supply electricity rates that PSE&G charges customers who have not selected and alternative electric generation supplier.  These default rates are based on a series of auctions that PSEG holds for their customers.  Electricity suppliers compete to provide rates for a percentage of the PSEG default customers.

PSE&G passes the supply rates from the electricity companies who win at the auction directly on to customers.  So even when a customer pays the basic generation service default rate, they are still paying money for their supply service to another electric supplier other than PSE&G.

Lower electric rates can be selected by customers who take the time to shop and find their own electricity supplier.  When the auction for default rates takes place electricity suppliers have to take into account that a certain percentage of customers will leave the basic generation service during the year.  For example, if an electric company wins the right to provide default service for 100,000 customers starting in June, they have to put a premium on the price taking into account that there is a probability that 15% of these customers might sign a contract with an alternative electricity supplier who is offering a lower electric rate.

When electricity suppliers market their service and rates to individual customers, they do not have to include a premium since they are pricing for one entity.  This results in lower rates and savings on the PSE&G electric bill.

Here are some current offers and savings for electricity customers in PSE&G:


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PECO Electric Bill

PECO energy is the utility company that delivers electricity to Philadelphia and surrounding areas.  PECO is the largest utility in Pennsylvania in terms of the number of customers it serves.

Many PECO energy customers might be unaware of their ability to choose an alternative electric supplier for the generation portion of their electricity bill.  With price caps being lifted earlier this year, the PECO service area is now a fully competitive electricity market.  Customers can lower their electric bill by shopping for an electric company who is offering a lower rate than the PECO default rate.

Below are some PECO offers that are lower than current PECO default rates.  PECO electricity default rates will change every three months.  According to PECO, the PECO residential rates are expected to increase this summer.  Locking in a fixed electricity rate with a competitive electricity company will save you money right away and protect you from future rate increases.

Some of the offers below also include promotional offers such as gift cards and cash back.  Click on the offers for more information.


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PECO Energy Bill Pay

PECO energy customers might be surprised to learn that even if they choose an alternative electric supplier, they will still be able to pay their PECO bill the same way they have been doing so, including online with e-bill.  This is due to the way electricity choice has been set up in the PECO territory as well as the whole state of Pennsylvania.

Choosing an alternative electricity supplier doesn’t end your tenure as a PECO energy customer.  PECO is a regulated electricity delivery company.  They are in charge of distributing the power in their territory, maintaining the reliability of the lines and wires, and controlling the management of the monthly electric bill.

PECO charges a default rate for electricity generation, also referred to as electricity supply.  When PECO customers use electricity choice to find a lower electric rate, that rate simply takes the place of the PECO default generation rate.  The customer can still pay their electric bill online, as they will still receive their monthly electric bill from PECO energy.

PECO Competitive Rates


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