Electricity customers living in the Dallas-Ft. Worth area who were not locked into a low fixed electric rate saw their electric bills increase substantially in August and September. Due to the record high heat experienced in Dallas, power prices skyrocketed which caused consumers, on a variable rate structure, to have to pay up to three times more than normal. Consumers who were locked in with fixed rate contracts did not have to worry about the increases.

The market for power in Dallas is deregulated which allows consumers to shop among multiple electricity companies for the best deal. Consumers who choose variable rate contracts often benefit from a low introductory rate in return for the risk that prices will go high. Often these customers feel that if prices get too high they will just leave and sign with someone else. However, as was seen with Dallas power prices in the summer of 2008 and 2011, this strategy can often backfire. We recommend that all residential power customers find a low fixed electric rate to protect themselves from market spikes.

The electric utility company in Dallas is Oncor. Oncor is responsible for delivery power to Dallas homes and businesses. Even though the Oncor charges are included in the electric rate, it is important for Dallas customers to know their utility company becauses prices in Texas are offered by utility area, and the utility company is who you should call in case of an emergency relating to power failure.

Here are some low electric rates in Dallas and other Oncor areas:

Electric rates for customers in the PECO territory are increasing for consumers who have elected not to shop for competitive energy prices. These default rate paying electric customers will see the PECO price to compare raise about 5% on October 1. The price to compare rates are regulated by the Pennsylvania Utility Commission and are determined by auctions held for wholesale energy companies wishing to serve the default pool of customers in the PECO region. Revenues from the price to compare rates are passed through PECO onto the winning bidders.

The decision to raise electricity prices is not made by the PECO Energy Corporation. Instead the prices are determined by the free market at the wholesale level. Since PECO does not earn profits from the increased default rates, they are encouraging their customers to shop for lower electric prices. PECO earns revenues and profits from distribution delivery charges that are still being regulated at the state level.

Residential PECO customers on the price to compare rate will pay $0.1114 cents per KWh in October, up from $0.1042 in September. Meanwhile competitive fixed electric rates are being offered that are below $0.0900 per KWh. For PECO customers who have not shopped they have a decision to remain on default service and pay $5-$15 more per month, or shop for competitive rates and save around 20% on their monthly electric bill.

Here are some current low electric prices available in Philadelphia and other areas serviced by PECO Energy: