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:
PECO Energy is a utility company who delivers electricity to 1.6 million customers in Pennsylvania. On January 1, 2011 they will be increasing their rates by about 10%.
January 1, 2011 marks the expiration of rate caps that were enacted in 1997. PECO energy customers will more than likely also see their generation rates increase as the capped rates expire and they move to PECO electric generation default rates. Customers will be able to find lower generation electric rates with other electric companies.
It is important for people to understand that PECO Energy is still a regulated company. PECO is responsible for the delivery of power to their customers, but they are not responsible for offering low generation rates. People who wish to remain “loyal” to PECO by staying with their electric default rates are poorly misinformed. Those who shop and buy lower electric rates with other electric companies will have lower electric bills, but they will still receive their monthly electric invoice from PECO.
PECO electricity customers will be able to offset the 10% increase that PECO is imposing on their delivery charges by shopping for lower generation electric rates, which makes up about two-thirds of the bill.
Best PECO Competitive Electricity Rates (updated daily):
Electricity customers who are serviced by Metropolitan Edison Company (Met-Ed) are preparing to shop the competitive electricity market for the first time. On January 1, 2011 electric rates for Met Ed customers, that had previously been capped, will expire giving customers the option to stay on the Med Ed default supply price or shop the market for lower electric rates.
It is expected that Met Ed customers who compare electricity rate offers from electricity companies will be able to save money versus the Met-Ed default price to compare rates. Electricity shopping will result in lower electric bills for those electric customers who are able to lock in lower electric rates than the new Met Ed rates.
Met Ed residential customers should take the time to compare all electric offers. It is expected that some electric companies will offer residential Met Ed customers variable rates that fluctuate with market rates, while other electric companies will offer fixed electric rates for up to two years that will give households price protection. Other markets in Pennsylvania have seen low variable introductory rates followed by immediate spikes. Sometimes a slightly higher fixed electric rate will save you a lot more in the long run compared to a lower variable electric rate.
Met Ed commercial and industrial customers will be given a variety of electricity rate options. As Met Ed moves from a regulated environment to a competitive market, it will be extremely important that businesses take the time to educate themselves on all of their electricity supply options. The right choice can save them thousands on their electricity bills.
