PPL Commercial Rates
Now that we are past a full month into the new year, PPL commercial customers are getting a first look at their new high PPL default rates which are 18-36% higher than what they were in December 2009. The reason for this sudden increase is due to the fact that decade long capped rates set by PPL expired on December 31, 2009.
The exact amount of the increase is dependent of the customer classification (rate class) that is assigned to them by PPL. Factors such as KW demand and annual KWh consumption determing the rate class for commercial clients. Smaller mom and pop shops will see an increase of around 18% while larger office buildings, movie theatres, factories, ect. will see a larger increase closer to 36%.
With these increases in place, the competitive market for electricity in the PPL territory has heated up. With more than a dozen licensed electric providers offering electric service in the territory, commercial customers have a variety of options to lower and manage the recent energy price spikes. Also in the market are numerous electricity brokering and consultant outfits who inform their clients which providers are offering the lowest rates as well as provide information on different types of electricity rate products and contract concessions.
Current Competitive PPL Commercial Rates (updated daily):
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January 21, 2010
On January 1, 2010 PPL electricity customers had their rates increase anywhere between 18-36%. The increase was a result of the 1996 Pennsylvania Electricity Generation and Customer Choice Act which capped rates in the PPL territory from 1997 until the end of 2009. Most PPL customers will get their first taste of this increase in the coming weeks when they see their first bill that will possess the new rate.
While competitive electricity rates have been on a slight rise the past few weeks due to a rise in natural gas prices, fixed rate savings are still available for PPL customers. Residential and business consumers can lock in fixed rates that can save them up to 12% with current competitve prices. Savy customers should try to install a rengotiation clause in their contract so that they can take advantage if prices come down even further later in the year. Large business customers can also save more by looking into more exotic electricity products that would allow them to ride the wholesale electricity market at certain times of the day.
PPL has reported that about 13% of their clients have switched providers so far; a number surprisingly isn’t larger at this point. The primary reason people have been slow to switch is a lack of understanding of what is going on. There will most likely be a surge in switch requests in February after people see the rates that they paid in January with the PPL default service.
For information on competitive electric providers and rates in PPL, contact us at news@electricitywatch.org
