Pennsylvania electricity customers serviced by Metropolitan Edison (Met-Ed) are seeing competitive electric rate offers for the first time. Met-Ed default prices were capped until January 1, 2011 which had previously kept energy companies away. Now that the default price caps have been lifted competitive suppliers are able to offer low electric rates for consumers.

Electric shopping has been a success in other parts of Pennsylvania. The Pennsylvania utility companies PECO Energy, Pennsylvania Power & Light, and Duquesne Light have seen increased competition and shopping activity among their customers. Similar results are expected for the Met-Ed territory.

Met-Ed will continue to serve as the electric delivery company for their customers even if a switch for lower generation prices is made. Electric choice in Pennsylvania is about choosing your generation electric supplier, the utility company remains the same and remains regulated by the Pennsylvania Public Utility Commission.

Philadelphia energy customers can reduce their electricity bills by participating in Pennsylvania’s electric choice market which allows consumers to shop for competitive power prices.

PECO Energy, the local utility company for the city of Philadelphia and surrounding areas, distributes the electricity bills to 1.6 million customers in the area. The total electricity bill is broken down into several costs. The generation and transmission charges encompass the portion of the bill that is subject to choice. When a consumer chooses a competitive electricity rate, the chosen rate replaces the current generation and transmission charge on the bill.

The distribution charges remain the same on the electricity bill no matter which competitive electric supplier is chosen. The distribution charges are regulated by the Pennsylvania Public Utility Commission.

For Philadelphia electricity consumers looking to lower their electricity bill all they have to do is find a competitive electric rate that is lower than the current PECO price to compare. The PECO price to compare is the rate for electricity that is charged for those customers who do not shop for competitive rates. The price to compare is determined by an auction process held at the wholesale level and overseen by the Pennsylvania Utility Commission.

Here are some of the lowest electric rate options for Philadelphia consumers…

Electricity customers approached by sales reps from North American Power should be careful before signing an electricity contract with the supplier. North American Power contracts that offer a variable rate are likely to increase almost immediately. Their contracts do not even guarantee that the rates they advertise on their site will be locked in for the first month.

The company promotes their rates by emphasizing that by choosing them you will be supporting charitable organizations. This is true, however it should be noted that you will be doing this as an extra cost to you, by paying more on your electric bill. You can support these charitable organizations without choosing North American Power as your electricity supplier. By choosing a variable rate with North American Power, you will pay a price for electricity at the company’s choosing.

Current North American Power prices for customers in the Connecticut Light & Power (CL&P) territory are listed as $0.0899 per KWh. However, customers in this area are paying $0.0999 cents per KWh on their most recent bill, a price that is even higher than the CL&P default rate.

We strongly recommend not choosing a variable rate for your electricity for the simple reason that the price has no ceiling. In contrast, a low fixed electric rate can guarantee you savings if the rate is lower than your utility’s default price to compare. The fixed rate will be fixed for a set term indicated on the electricity agreement that you choose.

The shape of power companies in Illinois has changed as the state’s energy choice laws have begun. Illinois consumers, prior to electric choice, were forced to buy their power supply from monopolies who were regulated by the Illinois Commerce Commission. Illinois electric choice has allowed new power companies to enter the market, however the old regulated power companies still serve a very important role.

The incumbent power companies of Illinois, Commonwealth Edison and Ameren, were once responsible for all phases of the energy business for their given territories. This included purchasing power from generation facilities and then delivering that power to homes and businesses throughout Illinois.

Illinois electric choice has taken the power purchase responsibility away from ComEd and Ameren so that they can focus on delivering the power to properties, as well as responding to power failures and emergencies. Choice allows customers to purchase power from a variety of power companies, some of which might focus on providing electricity at the cheapest rate, while some might market themselves as clean power companies who sell green energy.

As the energy choice landscape in Illinois continues to mature, consumers can expect to see more power companies marketing their service. Aleady several licensed power companies are offering electricity rates to customers of ComEd at steep discounts compared to the ComEd default rates. If you can lock in a fixed rate that is lower than the default price to compare, than you will save money on your monthly electric bill. Below are some low rate options in ComEd.