PECO Power Rates Increasing in Fall 2013

PECO Energy has announced that their default supply electricity rates will increase on September 1, 2013. The increase will be about a full penny per kilowatt hour higher than the rate that was charged during the summer, resulting in a $10 per month increase for a home that uses 1,000 KWh in a month.

The power rate increase will only occur for those PECO Energy customers who have not shopped for competitive electricity. To date only 31% of PECO residential customers are buying their electricity from a alternative energy supplier, meaning that the rate increase will take place for 69% of customers in southeastern Pennsylvania. The rate increase has presented a savings opportunity for these default paying customers. The increased PECO rates combined with lower competitive electric rates gives customers the chance to save money on their electric bill if they are willing to spend a few minutes shopping for competitive power rates.

Many customers have chosen to lock into long term fixed rate electricity agreements with energy companies that will not only protect themselves from the rate increase that will take effect in September, but also protect them from future potential rate increases. Many energy analysts are forecasting energy prices to increase from now throughout 2014 making now an idea time to lock in low fixed electric rates.


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Commonwealth Edison Rates Increase by 20 Percent

The Commonwealth Edison Company, responsible for delivering power to 3.8 million electricity customers in northern Illinois, recently raised their electricity supply rates for residential customers by 20%. The increase went into effect on October 1, 2012. The new high rate of 8.32 cents includes generation and transmission charges. The 8.32 cents does not include the “Purchase Electricity Adjustment” which is a true-up payment ComEd charges or refunds customers based on the difference between what ComEd paid to acquire power supply for the default customer class and what ComEd actually charged this class of customers. ComEd has estimated that this true-up cost will be another $0.005 from now until May 2013. If this estimated increase is accurate, it means that the true price to compare will be closer to 8.8 cents per KWH for default paying customers in the ComEd territory.

Default paying customers include all electricity customers who receive their electric bill from the Commonwealth Edison Company who have not chosen a competitive electricity supply company to provide them with competitive eletric rates. Customers can eliminate the increase, and even pay less for electricity than the default rate of 6.935 cents that was offered during the summer by participating in the Illinois electric choice market and shopping for electricity rates that are competitive. Switching off of the high ComEd price to compare rate and onto a lower electric rate offered by a competitive electric supplier will also eliminate the “Purchase Electricity Adjustment” charge on the ComEd electric bill.

With competitive rates being as low as they are (see below) the number of power shoppers in Chicago and surrounding areas is growing rapidly. People are starting to understand that electric choice can simply provide a lower ComEd electric bill without sacrificing quality. ComEd is still in charge of delivering power and responding to power emergencies for their 3.8 million customers in northern Illinois. Furthermore, ComEd continues to deliver the monthly electric bill to their customers. Switching electric suppliers simply amounts to the rate on the supply section of the ComEd electric bill to be altered.

Competitive electric companies are able to offer substantial savings versus the Commonwealth Edison default price to compare rate. While many consumers are catching on, there are still many who have not had the time to research the benefits of energy choice. For more information on competitive electric rates in ComEd, see our daily update prices from approved suppliers licensed by the Illinois Commerce Commission.


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PSEG Switching Percentages Lag Behind Other NJ Utilities

While the overall electric switch percentages continue to increase in New Jersey, the portion of PSEG customers participating in energy choice has lagged behind that of the other state utilities. The electric switch percentages measures the portion of customers in a service utility area who are taking part in New Jersey electricity competition and buying power from a competitive supplier. Total active New Jersey electricity shoppers increased by 16,772 customers to 458,833 from May 2012 to June 2012.

Out of the three biggest New Jersey electric utilities – PSE&G, JCP&L, Atlantic City Electric – the PSE&G switch rate is the lowest at 11.8% compared to over 16% for the other big two utilities. The gas switch statistics show a similar story with only 6.64% of PGE&G gas customers taking the time to shop for competitive rates. The next largest gas utilities in the state, South Jersey Gas and New Jersey Natural gas, have switch rates of 10% and 8% respectively.

One theory of the lower switch numbers for PSE&G, the states largest utility for both electric and gas, is the complicated utility identification numbers found on the PSE&G bill needed to complete a switch to a competitive supplier. In order to switch to a competitive electricity company, the customer must find their 18 digit electric POD ID number found on their bill. Another similar 18 digit gas POD ID number exists as well on the bill for consumers looking to switch gas suppliers. ElectricRate.com, an energy comparison site, has reported that many PSE&G customers mistakenly enter in their PSE&G account number when attempting to make a switch. Competitive energy companies are unable to complete a switch request with just an account number according to New Jersey Board of Public Utilities rules. Many consumers struggle to find the correct POD ID on their electric bill and give up on making the switch. In some cases, the customer may accidentally give their gas POD ID when signing up for electric service or vice versa.

Customers willing to take the time to find the correct POD ID number on their PSE&G bills will reap the benefits with large energy savings. Below are current competitive electric rates available in the PSE&G service area.


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Atlantic City Electric Lowers Default Power Rates

Atlantic City Electric residential customers paying default rates for their power supply service experienced a rate reduction of 5.7% in June. The Atlantic City Electric price to compare, the price consumers pay for electricity generation service who have not shopped for competitive rates, had been at $0.1224 since February of 2012. On June 1, that rate dropped to $0.1154.

While the rate reduction gives a slight relief to price to compare paying customers, competitive energy suppliers were quick to point out that these customers can save even more by shopping for competitive electric rates with current savings as high as 18% off of the ACE price to compare rate. Through New Jersey energy choice laws consumers have the ability to choose who supplies their home with electricity.

The energy choice laws maintain Atlantic City Electric as a regulated utility for southern New Jersey, responsible for delivering power to homes and businesses within the region. However the generation supply, the cost to produce the electricity at retail prices, is open for consumers to shop for the best prices. Those consumers who do not participate in New Jersey electricity choice automatically pay the price to compare rates offered by their local utility company. Competitive electricity prices provide an easy way for customers to significantly lower their Atlantic City Electric bill. Even after choosing a competitive supplier, Atlantic City Electric continues to deliver the monthly electric bill to their customers. The competitive electric rate simply takes the place of the price to compare supply charge.

Here are some of the lowest current competitive electricity rates in the Atlantic City Electric service territory.


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PSEG BGS Summer Rates Posted

Summer electricity rates for PSEG customers on supply default rates have been announced. The PSEG default rates are named Basic Generation Service (BGS) charges by the New Jersey Board of Public Utilities. Customers who do not shop for competitive rates, offered through the New Jersey Electricity Choice and Competition Act, pay the BGS charges. Those customers who do shop for competitive electricity prices can find rates that are significantly lower than the BGS charges resulting in a lower PSEG electric bill. The competitive rates include all charges listed under the “Electricity Supply” section on the PSEG electric bill.

All BGS charges on the PSEG bill include the state SUT tax. The New Jersey Board of Public Utilities requires all competitive electricity companies to include the SUT in their rate offerings to residential customers so that consumers can compare PSEG electricity rates smoothly and accurately, eliminating potential hidden fees that companies might otherwise try to impose.

Starting on June 1, 2012 residential customers paying BGS rates will pay $0.1097 per KWh for their first 600 KWh and $0.119038 for everything in excess of 600 KWh. Most residential properties bigger than a one bedroom apartment will consumer more than 600 KWh. The average BGS customer will pay over $0.1100 on their electric bill this summer. Competitive rates (see below) can reduce the rate per KWh tremendously resulting in a lower PSEG electric bill.


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PECO Electric Prices Drop

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.


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Higher Summer Electric Bills for PPL Customers

Electricity rates will be increasing for PP&L customers who remain on the default “Price to Compare” rate on June 1, 2012 for both residential and business consumers. Residential consumers will see a 11.9% increase on their electricity supply charges which include electricity generation and transmission costs.

PP&L is encouraging their customers to shop for competitive power in order to lower their electric bills. Competitive electric rates are available that are lower than the default rates. Pennsylvania electricity choice allows consumers to shop and compare electric rates from multiple power companies. No matter which electricity company is chosen to supply power, PP&L customers continue to receive power delivery service and their monthly electric bill from PP&L.

Many consumers still paying the “Price to Compare” rate offered by PP&L are doing so out of loyalty. Customers should understand that PP&L is not in the business of offering competitive generation rates and are now only in the business of delivery the power and managing the distribution lines. PP&L does not profit from the default rates that they offer, and instead passes the revenues from these charges onto other energy companies who have won the contract to provide service to default paying customers through an auction process.

Customers who refuse to shop for the best electric rates will see the price they pay for electricity go from 6.935 cents on May 31, 2012 to 7.993 on June 1, 2012. So far 40% of all residential customers in the PP&L utility area are buying power from competitive electricity companies. That number is expected to grow to over 50% by the end of the summer, resulting in the majority of the market being participants in energy choice.

Below are the best electric rates available from competitive suppliers. The rates are updated daily.


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Lower My BGE Bill

Electricity customers who are serviced by Baltimore Gas & Electric are finally starting to see the benefits of Maryland energy choice as competitive energy companies have pushed prices down.

How Do I Lower My BG&E Electric Bill?

There are a thousand different answers to this question. Some are true, some are myths, some are smart, and some are just plain ridiculous. While many people will spit out some energy efficiency strategies and facts – unplug appliances, turn down the AC, keep blinds shut during the day – the easiest way to lower your BGE bill is to exercise your freedom to shop the competitive electricity market.

You can always take the time to learn about energy efficiency and put that to practice, but there is no simpler way than taking 5 minutes to switch off of the high BGE default rate and onto a lower competitive rate.

Maryland electricity choice laws have structured it so that BG&E continues to deliver power to their customer’s properties regardless of which energy supplier they choose. BG&E is now only in the business of power delivery and power line and wire maintenance. When you choose a competitive supplier, you continue to receive your monthly electric bill from BG&E. The rate you choose simply replaces the default BG&E supply rate. So if the competitive rate is lower than the default rate, you save money on your electric bill.

So, How Do You Lower Your BGE Electric Bill?

Simple! Just shop and choose one of the low competitive electricity rates below.


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Connecticut Energy Choice

Energy choice is providing savings for Connecticut electricity customers. Connecticut’s energy choice laws allow consumers to shop for competitive electricity generation rates. Currently competitive rates are being offered that are significantly lower than the local utility (CL&P, United Illuminating) generation default rates.

The utility generation default rates are set for an entire calendar year. As an electricity shopper, if you can find a competitive fixed electric rate that is lower than the default rate (see below) than you can guarantee yourself electricity bill savings. Connecticut Light & Power and The United Illuminating Power Company offer default electricity rates for consumers who are slow to learn about Connecticut energy choice.

The expenses customers pay for default service are actually passed through CL&P and United Illuminating to competitive energy companies who have bid to service the default class. Many people refuse to shop for lower electric rates because they believe that staying loyal to CL&P and United Illuminating will promote the local economy. That thought process is false as the default revenues already go towards competitive energy suppliers. The Connecticut energy choice laws have unbundled the CL&P and United Illuminating so that they now only focus on delivering the power in their regulated local utility territory. Connecticut Light & Power and The United Illuminating Company do not profit from generation supply rates, and therefor do not care if their customer’s shop for lower competitive energy rates.


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PECO Price to Compare Rates Increasing in April 2012

Despite falling natural gas prices the PECO electricity price to compare, the rate that PECO customers pay for electricity who do not choose an alternative energy supplier, will be going up on April 1, 2012. PECO Energy is the electric utility company who serves the majority of Philadelphia and the surrounding area. Their responsibility is the maintenance of the power lines and wires, and providing default generation supply rates for electricity customers who have not yet caught on to electricity choice.

Customers who have not power shopped are being urged to do so in order to find a lower electric rate for their home. With the tough economy it makes sense to spend 5 minutes comparing electric rates and choosing a cheaper energy price plan. The truth is, even if it wasn’t a tough economy there is no reason not to shop for a low fixed rate that will save you money; the quality of the power remains the same, PECO continues to send the monthly electric bill and respond to power emergencies, and the customer saves money.

The PECO price to compare is based on a series of auctions held by PECO Energy for competitive energy suppliers who wish to serve a portion of default paying consumers. With the default rate going up in spring during a time of historically low natural gas prices, many analysts believe the default price will go up even further in the summer. Finding a low fixed electric rate can not only guarantee immediate savings, but it provides price security that my result in even more savings in the coming summer months.

Here are current PECO competitive energy rates:


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