As of March 31, 2010 the Maryland Public Service Commission reported that 75% of small businesses in Maryland who are eligible to shop for competitive electricity remain on default service.  The vast majority of these businesses can save a substantial amount on their monthly invoices by taking some time to look for lower fixed rate electric contracts.

As an example, BGE customers in the GS rate class have a default rate of $0.1247 cents per KWh.  ElectricityWatch.org found a competitive fixed rate of $0.095 cents per KWh, a 24% savings.

Savings are available for customers in the following utility service areas: Baltimore Gas and Electric, Allegheny Power, Delmarva Power & Light, Potamac Electric Power.

BGE Updated Competitive Rates

Below are the lowest rates currently being offered to customers who receive their electricity bills from BGE.

Southern New Jersey commercial and industrial customers can now see significant savings on their electric bills if they choose to shop the competitive market for an alternative supplier.  Savings as much as 22% off of the basic generation service default rates have been achieved for many businesses.

Many customers on the MGS and AGS rate classes continue to pay the ACE default rates that are over 12 cents per KWh.  Current fixed rates can be locked in for 12 month terms as low as 10 cents per KWh.  While many businesses are starting to become wise to deregulation, the majority of ACE customers are still unaware or confused about the savings available.  We encourage all businesses in the ACE utility service area to shop for a competitive supply contract.

Update:  12/23/2010

Atlantic City Electric residential electricity customers can save 22% off of their default rate with a variable rate and $50 Cash back bonus by going here

Fixed electric rates with savings between 15-22% (plus up to $75 Visa Prepaid Card) can be found here

Question and Answers for Electricity Choice in Pennsylvania

Why should I shop the market?

Savings are available.  If you haven’t shopped you are paying what the state calls a price-to-compare rate.  Your local utility (PPL, PECO, Met-Ed, Allegheny, ect.) does not profit off of price to compare rates.  They simply pass on these default rates that are provided by generation companies who have bid to supply energy to you and other customers who are slow to shop.

Why shouldn’t I shop the market?

Only if price to compare rates are lower than the current competitive market rates.  This isn’t the case right now.  If the goal is to pay the lowest electric rate (and why shouldn’t it be?) then you should shop and sign a contract with a licensed electricity generation company.

What is involved in the process of changing who supplies my electricity?

In order to change electric suppliers and receive a lower rate, all that needs to be done is to sign an agreement form with the provider you have chosen.  The agreement form will stipulate the rate you are paying for the term (example: $0.085 cents per KWh for 12 months)

Will someone come to my property to change the wiring?

No, nothing is physically changed.  Your local utility still delivers power to your property.  The new supplier simply informs the utility that you will no longer be paying default (price to compare) rates and instead will be paying the lower rate that you have contracted for.

Can the local utility “get back” at me for switching off of the price to compare by not responding to service calls or charging me more for delivery?

Absolutely not!  First, through deregulation the utility companies are only in the business of delivering power.  They are not able to make profits off of supply service.  There supply service is through other private companies who have won a series of auctions to be able to supply price to compare rates to customers.

Second, just to give you peace of mind, all actions by utilities including delivery rates and repair services and regulated and monitored by the PA Public Utility Service.

Feel free to post more questions that will be answered immediately.

Customers in the PPL territory who have not signed an agreement to be serviced by an alternative electric supplier are paying the highest electricity rates in the region.  Since price caps expired on January 1, 2010 a large amount of residential and surprisingly commercial customers remain on PPL default service, in some cases paying 20% more than what is available on the competitive market.

It is important for customers to understand the benefits of shopping for supply or generation electric service.  There seems to still be a misunderstanding among the masses about the new role of PPL; they are soley in the business of delivering power and not supplying power. Shopping for low Pennsylvania electric rates will lower consumer’s monthly electric bill.

Many customers reluctant to switch providers say they wish to remain “loyal” to PPL.  It is important that these customers educate themselves so that they can understand that PPL does not see any profit from supplying them with default service.  That money goes to 11 different suppliers in 8 states who won auctions to provide power to default customers who are slow to shop. 

So what does all this mean.  If you don’t shop you are paying the highest rates in the area to companies who have won an auction to supply service to you at default rates ($0.10402 for most commercial, $0.10448 residential).  Those 11 companies who won contracts to supply power will see profits from the default service.  If you shop the market you can save between 10-20% on your monthly electric rates and the company who you choose to supply you with power will see profits.  Either way, PPL will not see profits from the supply portion (generation plus transmission) of your bill.

For a list of competitive suppliers and their current rates you can either email us with subject line (Send Rates) or join our Power Club on the right.

The state of Connecticut reported that as of January 31, 2010 a staggering 58% of small businesses are still on default service with either CLP or UI as opposed to shopping the competitive electricity market and saving money.  The number for residential customers is even higher at 83%.

What makes these numbers so shocking is that competitive rates have in recent months dropped due to a decline in natural gas prices.  Default rates for Connecticut Light & Power (CLP) small business customers is 11.723 cents per kilowatt hour.  Rates can be found in the competitive market at 9.7 cents per kilowatt hour, which equals savings of 19%.

One theory as to why so many businesses have been slow to switch is the uncertainty of the electricity contract that needs to be signed in order to realize these savings.  Consumers should not worry about the contract and instead see it as a benifit.  When you elect to receive a low fixed rate with a competitive provider, they will provide you with a contract that will state the term for which you will receive the low rate.  You should be worried if a provider does not offer you a contract.  In the non-contract scenario you are putting yourself in an position where the provider can charge whatever they want.  The contract binds them to offer you the rate that you agreed upon and will be stated in the agreement.

For more information on electricity contracts or for a list of providers that can offer you savings, feel free to email us, leave a comment, or join our club.

Last month Philadelphia councilman Darrell L. Clark introduced a bill that would create a new Philadelphia Energy Authority that would serve as a cooperative to combine the electricity buying power of residents, businesses, and government.

The bill is a result of electricity rates in Philadelphia that have been capped since 1996. The cap expires on January 1, 2011 at which point electricity rates are expected to rise for those customers who remain with PECO, the regulated electricity delivery company in Philadelphia and the default electricity supply provider for customers who are slow to shop the competitive market.

To summarize, Councilman Clarke wants to create an organization that represents as many consumers as possible, and then buy power on their behalf. It appears that the councilman is trying to take advantage of an uneducated group and prosper in the competitive electricity market by marketing his group as a government entity doing good. In actuality the group will act like any other profit seeking firm offering customers discounted electric rates versus the PECO default rates in 2011. This act gives consumers the false appearance that the government is looking out for their best interests. The reality is that such a group would be in a position to make a lot of money for selling the electricity of the group to a licensed retail electric provider.

The actual increase in electricity prices from 2010 to 2011 in the greater Philadelphia area is still unknown since it will be dependent on auctions that have not yet taken place. The increase is however expected to be about 10% higher from current rates. Customers in Philadelphia can expect a number of licensed electric providers and consultants to enter the market to offer competitive rates and products, which is the purpose of the 1996 Electricity Generation Customer Choice and Competition Act. Deregulation creates jobs, product innovations such as efficient green energy, improved customer service, and in time lower rates. Having the government step in to purchase electricity for everyone is a step away from retail competition.

Sonny Popowsky, the state’s Consumer Advocate, said similar arrangements are under consideration on the state level, including a House bill to allow an authority to buy power on behalf of its residents. Such a bill would not be needed to accomplish what Sonny Popowsky is proposing here. Any organization could simply apply for an Electricity Aggregators License with the Pennsylvania Public Utility Commission. This is just another example of a government entity trying to use their image to prosper in a competitive (private) marketplace.

Feel free to leave your opinions.