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

January 13, 2010

Customers on default supply service in the Connecticut Light & Power (CLP) area recently experience a drop in their rates.  Small to medium size businesses in this area, customers who spend roughly $2,000 to $10,000 a month, saw their rates drop from $0.1247 per KWh in the end of 2009 to $0.11723 starting in January 2010.  This represents a 6% savings in the supply portion on the CLP bill.

An estimated 60% of businesses in the CLP territory are now paying this new default rate.  The remaining 40% have elected to participate in the competitive market and have contracted their supply service out to alternative suppliers.  The majority of the customers who have shopped are paying electricity rates far less than even the new default rates.

Despite recent energy prices rising due to a cold winter and lower than expected gas storage levels, Connecticut businesses can still save an additional 6-12% off of their utilities default rates.  In addition to the immediate savings, customers who lock in rates for a year or two will be protected from any increases in the default tariff rates during that period.

For information on lower electricity rates in your area, post a message with your email and we will send you a list of competitive suppliers and their rates for your area.