After having seeing a significant rate drop on electricity prices for the summer, PECO electric customers were surprised to learn that their power generation rates are expected to go back up in October. PECO Energy announced the expected rate increase, which will last through the end of the year, on their website in July. The finalized actual rates should be posted in August, but for now the increase will raise generation supply charges by over 18% on the PECO electric bill.

Fortunately customers can get a lower PECO bill by shopping for competitive electric rates through alternative energy suppliers. PECO Energy, who delivers power to the Philadelphia region in southeast Pennsylvania, charges customers who have not selected a competitive supplier a default electric rate. The default rates include the charges on the bill for generation and transmission. When consumers use their right to shop the market and select a lower electric rate, the competitive rate replaces the default generation and transmission charges on the bill.

Customers who have locked in low fixed electricity prices in previous months will not be effected by the PECO rate increase in October. The Pennsylvania electricity market gives consumers the ability to take control of their electric bill. Those consumers who have embraced competitive electricity are reaping the benefits while those who have shied away are paying more to power their homes than they need to. News of the PECO rate increase should provide a reason for many first time shoppers to explore the competitive market and find a low electricity rate.

For some business owners it is a simple concept; take a few minutes to compare electricity rates and end up saving between ten to 25% on a necessary business expense, the electricity bill. However, for many others the concept of electricity choice and deregulation is still foreign.

Those who have been quick to adapt to the new market are seeing the benefits with a lower PECO bill. Most competitive suppliers offer single billing which means even though a switch is made they still receive one bill a month from PECO energy. The bill includes the negotiated generation supply rate which is competitive, and the delivery distribution charges from PECO which remain regulated by the state.

Clearly Pennsylvania electricity choice is working as over 36% of business customers in the state have selected an alternative supplier, with that number being even higher, at 45%, in PECO Energy territory. The PECO Energy territory, which includes the city of Philadelphia and surrounding areas, serves the most customers out of all the Pennsylvania electric utility territories.

Over a dozen electricity suppliers are marketing their service to Philadelphia business customers. The PECO territory is one of the most active energy choice markets in the country. The high default rates combined with current low energy wholesale prices allows for competitive energy companies to offer significant discounts versus the PECO default rate. Savings will vary based on customer size and location, but nearly all PECO customers can save over 10% with current market conditions. With summer fast approaching, now is the ideal time to lock in a low fixed electric rate that will save a company money right away and protect them from potential future increases.

Current competitive PECO rates for businesses are below.

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:

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:

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:

The vast majority of Philadelphia electricity customers are serviced by the utility PECO Energy.  At the beginning of 2011 PECO customers had their electric rates, which had been capped since 1997, lifted.  This launched the beginning of true electric choice in the area.

PECO energy customers have the ability to shop and compare electric rates, which  have been resulting in electric bill savings for thousands of Philadelphia residences and businesses.  Customers can compare competitive electricity rates in Philadelphia against the PECO price to compare.  PECO default rates increased in July, making competitive electric rates even more attractive.

Competitive Philadelphia electricity rates are providing as much as 18% savings versus PECO default rates for residential customers, and between 10-20% savings for business electricity customers.

Below are current PECO Residential Electric Rates

Below are current PECO Business Electric Rates

PECO electricity customers will see an increase on their electric bills on June 1, followed by another increase on July 1.  Households who receive their electric bills from PECO, an electric utility company who serves most of Philadelphia and the surrounding areas, will be raising their electric rates for customer who are paying the default price to compare rate.

The PECO energy area transitioned to full electric choice at the beginning of the year (2011).  PECO still manages the maintenance of the lines and wires and continues to send their customers the monthly electric bill.  However, PECO is no longer in charge of providing low electric supply rates to their customers.  They only charge regulated fees for the delivery of the power.  They have also been given the responsibility by the state to provide customers who have tno shopped for electricity rates a default supply rate.

These default supply rates will be rising in the summer, however customers can protect themselves from these increases and save money compared to what they are currently paying by selecting a lower electric rate.  The great thing about electric choice in Pennsylvania is that even after a customer chooses a low electric rate, they continue to receive their monthly electric bill from their local utility company (PECO, PPL, Duquesne Light).    Pennsylvania residential electric rates options are available for customers looking to save money and enact their power of electric choice and competition.

Currently customers pay 9.99 cents for electric supply.  On June 1, customers who use more than 500 KWh, which is nearly everyone who lives in a home larger than one bedroom, will see their rates increase by 12% for all consumption above 500 KWh.  On July 1, another increase of about 3-4% on top of the June 1 increase will occur for every KWh consumed by residential customers.

Below are some current competitive offers, all of which are below the current 9.99 cents.  You will save between 10-18% versus the high summer PECO default rates by choosing one of the low electric rates below.  We recommend signing a fixed rate because savings will be guaranteed, as opposed to a variable rate where the rate can change in any given month.

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.

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 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.