The PA Public Utility Commission posted the results for the fifth power purchase that PPL has made for its price to compare or default customers.  The new rates will go into effect on January 1, 2011.  One more auction remains before the final rates are established. 

 

The heat wave that was present in the Northeast and Mid-Atlantic last week caused a spike in electricity demand which in return increased hourly prices in the electric wholesale market.  Weather is the key variable for electricity demand.  Warmer than average weather causes an increase in demand as people turn their air conditioning down, forcing reliability concerns as wires and transformers overheat.

Customers on variable rates in the Northeast and Mid-Atlantic might see an increase on their next bill.  Larger commercial customers who are on an electricity contract tied directly to the PJM wholesale market will almost certainly see a significant increase on their rate from the last few months.  Residential and small commercial electric customers on a variable rate will see an increase depending on how much of the daily market their provider depends on.  Those providers who rely on the daily market for their entire customer base will be in a lot of trouble as they will be forced to pass the electric rate spikes right onto their customers.

There are currently savings for Connecticut electricity customers who are serviced by the utility the United Illuminating Company (UI).  Both residential and business customers are finding savings by shopping the competitive electric market.

Residential electric customers in the UI service area are paying a default rate of 11.568 cents per kilowatt hour.  The lowest electric rate in the UI utility area that we found was for 9.6 cents per kilowatt hour, a 12% savings.  Similarly, a 9.6 cents electric rate was found for small business customers in Connecticut compared to the UI default rate of 11.5918,  1 7.3 percent savings.

Electric savings are real in Connecticut.  If you have not looked into competitive power prices we strongly encourage you to do so.  There is no reason to pay 12-20% more a month on your electric bills when you can easily save money by signing an electric contract with a reputable electric supplier. 

For a list of electric suppliers in your area send us an email with your state and local utility company. 

We are also seing electric rate savings in the following utility service areas:  PSEG, ACE, JCPL, CPL, PPL, BGE, Delmarva, all of Texas

Texas residential customers who have had their contracts expire could be paying too much on their monthly bills.  Nearly every competitive electric provider who offers term contracts has a clause built in that causes customers to stay with the provider after the contract has expired at rates determined by the supplier.  The business strategy for the electric providers is that a large enough percentage of their market share will forget to sign a new contract allowing them to up the rates to a premium.

Two summers ago, electric rates in Texas for twice as high as they are today due to higher natural gas prices.   Customers who signed fixed electric rate contracts during that time became customed to paying a high electric rate.  As these contracts expire, providers continue to charge the high rates hoping that their customers have forgotten that they can now shop for a lower rate.

If it has been awhile since you shopped the electricity competitive market we encourage you to see if your contract has expired.  Just because you are still receiving a bill from an electric provider you chose last year does not mean that you are still on contract.

For the lowest Texas residential electric rates today, email us with your city name and ask for rates.  As of this week, fixed rates have been found below $0.09 per kwh.  Many Reliant and TXU customers are paying over $0.15 per kwh.

Maryland electric customers, both residential and business, are finding lower electric rates when they shop in the competitive market.  Customers who are served by Baltimore Gas and Electric (BGE) and PEPCO are finding the greatest savings.

The exact rate and savings that you can find depend on your individual rate class by your utility and historic usage patterns, but most electricity customers in Maryland can save between 10-20%.  As an example, current the current price to compare (default rate) for a BGE class G type 1 business customer is $0.1089 per kwh.  We have found a 24 month fixed offer for such a customer at a rate of $0.092 per kwh, a 15 percent savings.

Most Maryland Utility companies, like BGE and PEPCO, offer consolidated billing options which means that customers will still receive their monthly electric bill from their same utility company if they choose to lock in a low fixed rate with a competitive electric supplier.

Pennsylvania business electricity customers can lower their electric rates if they have not already done so in most areas.  Small and medium size businesses in the PP&L (Pennsylvania Power & Light) area pay a default rate of $0.10402 per kwh in 2010.  The default rate in 2011 is not expected to be below $0.10 per kwh.  Right now fixed electric rates in PPL can be locked in for up to 36 months at $0.085 cents per kwh.

On Janaury 1, 2011 capped rates will expire for roughly half of the state including customers in the PECO area.  Electric providers have already begun offering commercial and industrial electric customers fixed electric rates that would start in January when the new default rates take place which are expected to be about a 10% increase compared to what those PECO customers are currently paying.

Find Competitive Commercial Electric Rates

PECO conducted the third of four auctions for power to serve customers starting in January 2011. It was the second in which the company purchased power to serve small and medium commercial and industrial customers. Those two auctions have an average price from PECO of 8.66 cents/kWh for small and 8.63 cents/kWh for medium C&I customers. The retail price for small and medium C&I came from a wholesale energy price of 7.61 cents/kWh.

Because energy prices fluctuate, PECO is buying the electricity needed to serve customers in 2011 at four different times – reducing the risk to customers of purchasing electricity all at one time when market prices could be high.  PECO will complete the remaining purchases in September 2010. The results of all four purchases will determine the exact price PECO’s customers will pay for electricity beginning Jan. 1, 2011.

State regulators have cut a revenue increase request by Connecticut Light and Power (CL&P) by nearly $76 million, effectively cutting electricity customers’ bills.  The proposed increases were on the utility’s delivery charge components and not on the competitive generation rate.

The Department of Public Utility Control said it approved an increase of $63.4 million this year for Connecticut Light & Power and $38.5 million next year, a total of about $102 million. The subsidiary of Northeast Utilities requested increases totaling $177.6 million for the two years.

CL&P, which serves 1.2 million customers, said regulators did a good job balancing the needs of customers, the company and others.

It is important for Connecticut energy customers to understand that these rate increase cuts are dealing with the regulated delivery portion of the bill and not the competitive supply portion.  The high CLP default rates are not effected by this, however those rates can be lowered by choosing a competitive electric supplier who is offering a rate lower than the CL&P price to compare rate.

The National Weather Service’s Climate Prediction Center is expecting a rough Hurricane season in 2010 that may have a negative effect on retail electricity prices.  Electric rates in the majority of competitive electric markets have a direct correlation with natural gas prices.  Bad hurricane seasons result in a decline in natural gas production that eventually pushes electric prices up for consumers.

The Climate Prediction Center estimates an 85% chance for an above normal hurricane season with only a 10% of a near normal season, and a 5% of a below normal season.  They are estimating 166 (Bcf) of natural gas shut in production which may cause electric prices to increase across the country.

The hurricane season is between June 1 and November 30.  Most utilities have default rate structures that cause their default customers to pay higher rates in the summer as oppposed to the rest of the year.  With those two factors added to the fact that at the moment fixed electric rate contracts have been low (10-30% lower than default rates depending on your location and energy consumption patterns), now is an idea time to look into locking in a low fixed electric rate. 

If you are currently on a floating rate you would also want to think about locking into a fixed rate as the floating rate will be affected by a bad hurricane season.  Customers in Pennsylvania, Connecticut, New York, New Jersey, Delaware, Maryland, and Texas should get off of default rates on lock into a competitive fixed electric rate.