Connecticut Light and Power electricity customers are going to see a 22% increase on their electric bills for the price they pay for power generation supply. The current rate of $0.07573, that has been in place since July 2013, will increase to $0.09235 on January 1, 2014. The rate increase will occur for those residential customers who are not currently on a competitive supply contract from a CL&P Alternative supplier.

CL&P residential customers have enjoyed low default generation rates from the utility over the last two years, which has limited growth in Connecticut’s electricity choice market. In Connecticut, when a customer does not shop for a competitive power rate they pay a default rate with their local utility, which in Connecticut is either CL&P or The United Illuminating Company. With CL&P rates being low over the last two years a lack of incentive existed for customers to get out and shop for a lower electricity rate. However, now that those default rates will be rising by more than 20 percent, electricity shopping in the state is expected to take off.

The competitive energy choice market has remained in tact even after two years of low electric default rates. Now that those defaults rates are rising, competitive electricity companies in Connecticut will attempt to get their brand out there in hopes of acquiring new customers. Connecticut residential electricity rates offered in the competitive market will allow a signifiant relief for those customers who will see their default rates rise in January.

Residential electricity prices will be increasing on April 1, 2013 for PECO Energy customers who have not shopped for a competitive electric rate. The current PECO price to compare rate – which includes power generation supply, the alternative energy portfolio standard charge, and transmission charge – of $0.0869 will increase to $0.0959 on April 1st, an increase of nine-tenths of a penny or 10.4%.

The rate increase will only occur for PECO Energy customers who are on default electric service. Default customers are those consumers who have not taken the time to shop for a lower electricity price from a competitive electricity company. As of January 16, 2013, 69% of PECO Energy customers remain on the PECO default service. The 10.4% increase on April 1st is expected to increase the number of PECO electricity shoppers as competitive energy companies are offering low electricity rates below even the current default prices.

The 31% of PECO Energy customers who have participated in the Pennsylvania electricity choice market will not be affected by the PECO electricity rate increase. Consumers who have locked themselves into low fixed electric rates can take pride in the fact that while the PECO electric bill will increase by 10% for the majority of their neighbors, their bills which most likely are already lower, will not see a rate increase.

One of the greatest benefits of Pennsylvania electricity choice is that it brings rate product choices to consumers. Many of the Pennsylvania consumers who have participated in electric choice have opted to select fixed rates that last a year or longer. This strategy has proved to be beneficial with the recent news of utility default rates increasing. Not only will selecting a fixed rate save you money in the near term, but it can help you save even more throughout the year as PECO adjusts their default Price to Compare.

See below for a list of competitive PECO electric rates that are apples-to-apples comparisons to the PECO default price to compare.

The competitive residential electricity market in Illinois continues to grow as consumer awareness of energy choice increases. Electricity choice has been steady in the Illinois commercial market, however residential awareness has only seen significant growth in the past year.

All four main utilities in Illinois – ComEd, Ameren I, Ameren II, Ameren III – have seen extreme growth in customer participation over the last twelve months. In July of 2011 the total number of Illinois electricity households buying power from a competitive supplier was just over 54,000 with just over 52,000 of those customers living in the ComEd territory. In July 2012 the total number of Illinois choice customers jumped up to over 800,000 with 527,000 of these customers located in the ComEd service area. The three Ameren areas went from having just below 2,000 shoppers in July of 2011 to over 270,000 in July of 2012.

The huge market growth has been a direct result of low electric rates that competitive energy companies have been able to offer to Illinois consumers compared to the utility default rates. When Illinois electricity consumers do not shop for competitive electric rates they end up paying a default rate for their generation supply service. The default rate, called the price to compare, is determined by several auctions held by the utilities for energy companies who wish to bid for the right to serve a percentage of price to compare customers. Since the Illinois energy choice law allows consumers to switch off of price to compare service and onto a competitive rate at anytime, the energy companies must put a premium on their price bids. The rapid move of customers taking the time to find cheaper electric rates has further increased this premium.

Meanwhile, those customers who do take the time to learn about Illinois electricity choice and compare electricity rates will be able to save a significant amount of money on their electricity bills. Most competitive electricity companies offer single billing which means that the Illinois consumer continues to only get one electric bill from the utility (ComEd, Ameren) that they are used to getting the monthly bill from. The competitive electric rate simply replaces the supply charges, which include generation and transmission, on the electric bill. If the competitive rate is less than the sum of the generation and transmission utility default rate you will pay less and save on your electricity bill.

Find your Illinois utility below and choose a competitive electric rate so you can start saving money!

Connecticut Light and Power (CL&P) residential customers are finding lower electric rates in the Connecticut competitive electricity market.  Many CL&P residential customers have still not switched electricity suppliers because they are unaware of the savings and benefits of shopping for low electric rates.

Many electricity customers who have not switched are not well informed on the details of the Connecticut Electricity Restructuring Act.  The act allows for CL&P and United Illuminating (UI) to continue to control the delivery of the power and the billing.  These utility companies only offer supply electricity rates as a default service.  Connecticut customers who do switch electric companies continue to receive their monthly electric bill from CL&P, or UI, but instead of paying the higher default supply electric rate, they pay the new lower rate that they signed for with the alternative electricity company.

Visit our Electricity Prices page for current electric rates in Connecticut.

Both offers can be chosen online.  The fixed electric rate will require a commitment of 6 months.  The variable rate has no commitment, however the rate can go up at anytime.  We recommend the fixed rate offer at this time.

Electricity prices in Houston and its surrounding cities have dropped to low levels.  When Houston residences compare electric companies they can find fixed electric rates under 10 cents per kilowatt hour for up to twelve months or even lower electric rates for shorter terms.

Houston commercial electric rates are in the six cent per kilowatt hour range for one year terms.  Just two years ago many commercial electricity customers were signing fixed electric rate contracts above 10 cents.  Though current longer term contracts (24 and above) are a little higher than short term (12 months and under) rates, many businesses are signing longer term electricity contracts in order to protect themselves from the potential of rising electricity costs in the coming years.

The electricity market is unpredictable causing many commercial electricity customers to want to limit their risks by locking in the lowest electric rate they can for the longest period of time.  The alternative can be seeing their electric bills double in a very short time period.

Residential electric customers in Houston are taking the same strategy signing fixed electric rates for as long as electricity companies will allow, which is usually 24 months.

Here are the lowest electric rate offers that we found in the Houston area:

Centerpoint area –

Residential electricity customers in the PSE&G utility area are finding significant savings on the electric bills.  The summer of 2010 is the first summer in New Jersey where there has been real electricity choice for residential consumers.  Though power choices are still limited compared to some other deregulated states (Texas, Connecticut, Pennsylvania, New York, Maryland) New Jersey customers have found that energy deregulation can be a good when attempting to have lower electricity bills.

The lowest option for PSEG residential customers can always be found on our electricity prices page.  We have seen rates as low as  10.75 compared to the PSEG default price to compare rate of 12.24 for the summer months of June through September.  Bigger households have to pay even more as their rates rise to 13.21 cents per kilowatt hour after the consume 600 KWH every month, which is about how much a 1 bedroom apartment would use in the summer.  These results in savings between 12-19%.

Here are the current rates we found (updated daily):

PSE&G residential rates will be about 12.27 from October 2010 to May 2011.  What most people don’t realize is that even after you switch electric companies and start paying a lower rate, you remain a PSEG customer as they continue to monitor the lines and wires for the electricity and the billing component.  So at the end of the day, the only thing that changes is that you pay a lower New Jersey electric bill.

Though participation in the New Jersey electric choice program has been slow when considering the significant savings available, things have started to pick up as more people start to realize the electric savings potential.

Jersey Central Power and Light (JCPL) electricity customers are seeing some of the lowest electric rates since the utility deregulated back in 2003.

The basic generation service, the JCPL default rate, will be $0.110285 per kilowatt hour from October 1, 2010 through May 31, 2011 for small and medium businesses.  From now through the end of September it will be even higher at $0.115462.  Solid 10-15% exist for these businesses who shop and compare commercial electric companies.

Meanwhile, New Jersey residential electric customers in JCPL are paying high default rates of $0.1172 a kilowatt hour.  For the first time since 2003, these electricity customers can save money by finding a lower electric rate through a competitive electric company.

Residential and business customers can find their current default electric rates on their JCPL bill at the top next to BGS Energy Charges and BGS Transmission Charges.  The combination of these two charges make up the total price to compare default rate.  When you choose a lower priced electric provider, their low electric rate will take the place of those two charges.

Depending on the electricity company, you will continue to receive one monthly electric bill from JCPL with the lower rate, or you might receive a bill from the electricity company for the supply charges and one from JCPL for the delivery charges.  Either way, you will save money as long as you sign for a electric rate that is lower than the JCPL BGS default electric rate.

Commercial and industrial electric rates change on a daily basis.  For a list of low commercial electric rates in New Jersey email us with the request and we will email you back a list of electricity companies and their electric rates.

Commercial and residential electricity customers have a number of options when it comes to choosing an electricity company for their supply rate in Pennsylvania.  In areas where the capped rates have already expired, such as PPL and Duquesne Light, there are over 20 electric providers actively offering service.  Choices are more limited in areas where the capped rates have not expired, such as PECO, but are expected to increase rapidly when those capped rates expire on December 31, 2010.

With so many options you might be wondering…..What should I look for in an electricity company?

Obviously the electric price is going to be the most important thing for most people, and that price is measured in a rate per kWh (kilowatt hour) which is the measurement for electricity usage.  For residential customers the Public Utility Commission does a good job of making the providers stay honest forcing them to include all components of the rate (including taxes) so that you can compare offers apples to apples.  However, there are some things the consumer should know:  Is the rate fixed or variable; Is there a meter charge; What is the cancellation fee; Can I reach a representative by phone or is everything done via email.  These are important questions to ask a electricity company when deciding whether or not the savings they are offering are going to be worth it to you.

As of the posting date of this article, the lowest residential fixed and variable rates are:

Current PPL Rates

Current PECO Rates:

The fixed rate will guarantee a residential customer savings over the utility default rate during the term of the agreement.  The variable rate will will not guarantee such savings, however the savings should be available for at least the near future unless unforeseen events occur that can disrupt the energy markets at the wholesale levels such as a natural disaster.  However, customers are not locked into a variable rate for any specific time period, so they can leave if the rate was to get higher than the default rate.

Commercial electricity customers have to worry about the above concerns plus a whole new set of possible traps.  Commercial companies have access to a variety of products and contract concessions that residential customers will not see.  If educated, these business energy consumers can greatly benefit from electric choice, but they need to be careful about traps that companies can insert into the electric contract.

Due to the fact that commercial customers are individually priced with electric providers, the “best price provider” for business electricity is constantly changing and is dependent on the customer’s specific usage demand patterns.  To get the best rate offer, a copy of a business electric bill is needed.

All in all, there are a number of electricity companies in the Pennsylvania market offering beneficial rates and contracts for both residential and commercial electric customers.  The more you understand about the electric competitive market, the more you will benefit.

February 15, 2010

Currently in Connecticut there are ten retail electric providers offering service to residential customers as an alternative to CL&P and UI GSC default rates.  However, of these ten, only four of them (Direct Energy, ConEd Solutions, MX Energy, Dominion) offer fixed rates.  With a fixed rate you know the exact rate you will pay for electricity for a set term (usually 12 months). Shopping for competitive Connecticut electric rates can save both residential and commercial customers money.

The other six providers offer different types of variable rates that can, and often do, change from month to month.  These variable rate providers often advertise a low introductory rate that will be good for the first month of service.  After the initial month, you can expect the rate to increase.

These providers are in a marketing war with each other.  They will show that they are offering savings versus CL&P and UI default rates with their introductory rate.  However there is no guarantee that they will continue to show savings after that first month.  They are hoping that once you switch to their service you will remain their customer for a long period of time no matter how high their rates become.  On the plus side, these variable rate contracts are usually month-to-month, so if you keep an eye on your rate you can leave if it becomes too high.

If you are a homeowner with good credit we recommend looking into one of the providers with fixed rates.  With a fixed rate you will know exactly how much you are savings versus CL&P or UI default rates, and you will have the peace of mind of knowing that the rate will be good for a set period of time.  The electricity market has a wholesale and retail side.  The wholesale market prices are constantly changing and have proven to be very volatile over the years.  Variable pricing can result in huge rate increases over a short period of time.

Many businesses have been reluctant to look into the benefits of electricity deregulation because of the bad taste that telephone deregulation has left in their mouths.

When the telephone market first became deregulated, changing providers could be a huge headache for businesses.  There were interruptions in service, lengthy contracts, and promised savings that were negated by hidden charges and fees.  So now that electricity markets have become deregulated in states such as Texas, Pennsylvania, Connecticut, and New Jersey, there is a lot of hesitation for companies that are not educated about the logistics to look into an alternative provider.

Unlike the telephone market, the transition to an alternative provider in the electricity market can be extremely easy with no risk.  When an alternative electricity provider is chosen to save money, there are no interruptions in service.  This has to do with the way electricity deregulation is set up.  The lines and wires portion remains regulated by the state.  The same company that has serviced your lines and wires in the past will remain the same.  What has changed is your choice to select who supplies your electricity.  This means that nobody will have to come to you and change any wires or modify your electricity in any way.  The only thing that changes is the rate.

If you have not done anything and are still with your incumbent provider then you are on that provider’s default rate that the state mandates they charge all customers who are slow to choose a competive supplier.  Depending on your state and market conditions, the default rate can be anywhere from 10-30% higher then what a competitive supplier can provide you.

The only way to get off the default rate is to find an alternate provider to lock you in with a lower rate.  Then the alternative electric provider will supply your incumbent provider with the electricity which they will then supply to you.  You will not be able to tell a difference in service nor will you be able to tell when the switch is made because it is seamless.

Another issue that concerns bussinesses is the question of who they should contact if electricity goes out?  The incumbent provider is still regulated by the state and remains your lines and wires (or Transmission and Distribution) company.  They will still be the company to contact in the event that there is a power failure due to whether or other natural disasters.  They will still provide you with the same level of service that they always have, whether you continue to pay the high default rate or find another alternative provider.

There are no addition fees to make the switch from the incumbent provider to another, so there is absolutely no reason a company would not want to look into the benefits of electricity deregulation.  There are substantial saving available that can benefit any business.