November 23, 2009

Single Billing Option are available for Pennsylvania Electricity customers.

As more and more electricity customers in Pennsylvania (especiallyin the PPL area) shop for competitive rates, confusion about billing options and price discrepencies are on the rise.  Many customers who have shopped in the Duquesne territory, where rate caps expired in 2002, now receive two separate bills for their electricity; one for the competitive supply portion and one for the regulated transmission and distribution of the electricity.  

PPL customers who will see their rate caps expire at the end of 2009 will most likely have the option of having their bills consolidated so they only receive one bill for their electricity service as they did before rate caps expired.  Whether or not they receive consolidated billing options will depend on whether the alternative supply provider offers this option for the specific customer.

Consolidated billing means that the local utility company would continue to send the electricity bill to the customer.   If an alternative provider with a lower electric rate is chosen instead of the utility default service, it would state on the utility bill the third party provider and the generation rate and charge amount.  Dual billing would cause the customer to receive one bill from the local utility for delivery services and a separate mail for the supply service. 

Many customers will not mind dual billing as they will see the saving potential of 10-25% off of default rates worth the extra hassle of receiving two bills in the mail.  For those that do find dual billing to be a nuisance, be sure to ask the provider if they offer consolidated billing or work with an electricity broker who will be able to find a provider to offer what you are looking for.

November 16, 2009

If you are living in a state that has deregulated their electricity market you are probably seeing and hearing more about how you can reduce your monthly electricity bills by locking in a lower rate.  Many people have been skeptical of such advertisements claiming 10, 20, and even 30% savings off of incumbent utility rates.  Much of this skepticism is a result of consumers not fully understanding energy market, deregulation laws, and how these two subjects relate to your potential to save.

While exact deregulation laws differ in each state, and sometimes within certain territories in a state, the outcome of saving money on the electricity rate is a result of the same reasons.  If you are living in a deregulated state and have not chosen an alternative supplier you are on a default service with the incumbent utility provider.  The default service causes you to pay a rate that the utility purchased in previous years.

The Market For Electricity:

Electricity is bought and sold on a daily spot market as well as future contracts.  Electricity providers can buy electricity for their customers today for service that might start a year from now.  This is done on the wholesale level.  The alternative providers are wholesale buyers who then sell the electricity to consumers at the retail level.

The incumbent utilities purchased electricity for their default customers (customers who are slow to choose an alternative supplier) on the wholesale market in previous years when these prices were higher then they are today.  If you decide to shop the market you can do so with retail electric providers who are able to buy from the wholesale market at today’s rates which are lower than the default rates; This is how the savings are realized against the higher default rates.

In conclusion, there really is no catch to reducing your electricity bills.  The savings are a result of falling electricity prices accompanied by deregulation laws.  Some states have default rates that are based on daily wholesale index rates.  In these circumstances it would be unethical for a provider to advertise set percentage savings.  Rather they should be presenting their low rates as a way to reduce risk against default rates that can spike up or down.

If you don’t know how your local utility establishes their default rates please feel free to leave a comment and someone should be able to answer your questions.

November 10, 2009

On January 1, 2010 decade long electricity generation rate caps will expire in the PPL territory in Pennsylvania.  With this happening Pennsylvania businesses and houses will immediately see their electricity rates increase to PPL default rates.  The default rates are established by PPL to service those customers who are slow or unwilling to shop the market for lower rates.  Those customers who do shop will be able to realize savings of 10-20% versus the higher default rates.

PPL default rates are determined by a series of auctions that PPL held over the course of 2009.  The final auction was held in October.  Small and medium businesses will see their rates increase 18-36% when the calendars  turn to 2010.  Residential customers will see their rates increase by 29.7%. 

Customers in the PPL territory are going to see their rates increase.  The amount the rates do increase can be limited if conusmers are willing to shop the market for alternative providers and offers.  There are also a number of third party consultants and electricity brokers who can help consumers compare different offers.  To avoid the maximum increase, consumers should look into signing a electricity agreement with an alternative provider in early December of 2009 since it can take up to a month for the new rate to go into effect.

Environmentally Friendly & Cheap Electricity

How to make your company envrinmentally responsible without burning a hole in the Checkbook

November 9, 2009

 

Article Highlites:

• Solar Energy is Expensive and not practical for mid size companies
• Wind Power is a real solution for companies looking for environmentally friendly electricity
• Despite governemnt incentives, solar panel sytstems require a substantial investment

 

More and more I hear about companies, ecspecially in New Jersey, turning to solar power to supply their energy needs. While talking to the executives of these companies I hear a sense of pride in their voices as they explain their decision to look into the benefits of solar power. In their minds it is a no brainer. They are told that the solar panels will produce enough electricity to supply all of their power and then some, and they will be helping the environment.

 

While hearing about companies “looking into solar energy” has become repititive, talking to someone who has actually implented the project is not as easy to come by. You might ask: How could this be? Solar panels, it is said, can eliminate the electricity bills for a company and their carbon footprint. The simple answer is, that despite the many government rebates and incentives, solar panel projects are expensive. A household project alone is usually priced between $20,000 and $30,000. It is easy and even fullfilling to talk about your plans to implement solar panels and make the jump to excluviely using solar energy to cool and heat your office building. However, the reality is that the technology to make solar energy cost efficient just hasn’t arrived at this point.

 

There is an easy, cheap, and environmentally friendly solution for companies. The solution is wind power. One of the key benefits of electricity deregulation that is often overlooked are the new products that competition produces. Many providers offer a wind power solution to customers who are looking to do their part for the environment. For companies that are still on the default rates with the incumbent provider of last resort, there is a high chance that the wind power product will also yield a lower rate than what the company is currently paying.

 

How does it work?

 

Wind turbines produce electricity which is deposited to the grid with the rest of the electricity produced by other means (natural gas, coal, nuclear). When a company elects to buy wind power they do so through a certified retail electric provider. That provider buys the electricity from the wind turbine farm at wholesale and then sells it to the customer. The more customers who choose to buy wind power, the more wind turbines will get built in the long run.

 

In the end you get a cheap, easy, and envirnomentally beneficial solution to supply electricity to commercial and industrial clientele. Wind power will not eliminate your electricity bill like solar panel implementation. However, using wind power does not require a substantial investment. With wind power there is less talking and more action.

November 2, 2009 –

In the  past few months the competitive electricity market in Connecticut has been heating up.  This has been the result of falling market electricity prices that have caused more alternative electricity suppliers to enter the market with numerous product options for customers.

The falling market rates have allowed electricity providers to offer instant savings against the default rates that Connecticut businesses, being served by Connecticut Light & Power and United Illuminating Company, are paying.  The default rates were locked in by the state utility companies in previous years when wholesale electricity prices were higher.  Alternative providers are able to buy energy on the wholesale market at cheaper prices and pass it along to commercial and industrial customers.

The savings are typically between 10-25% off of the supplier charge that businesses pay.  The amount of savings will depend on the customer size, usage patterns, and market trends.  However the general census is that any company can save at least 10% off of their electricity bill just by finding an alternative provider to supply their electricity instead of continuing to use the state mandated default rate.