Electricity prices for PECO customers are set to drop in July, but not before a slight increase in June. Small power users, those who use less than 500 KWh a month, will not be effected by the June increase. The increase will only effect power users who use more than 500 KWh a month, which is normally anyone who lives in a two bedroom apartment or larger.

Consumers who use an average of 1,000 KWh a month will see their electric price drop from 10.06 cents in May to 8.9 cents in July. These electric prices are for customers who are still paying the PECO default rate and not for those paying competitive rates with alternative energy companies. While consumers paying the default rate will see their electric price drop to 8.9 cents, those willing to shop the competitive market can find low electric rates in PECO at prices below 8.0 cents.

At this point in time there is really no reason for PECO Energy customers to not shop for lower electricity prices. With over 40% of households now buying their power from competitive energy companies in PECO, the region has proved in can sustain itself in a competitive market, and customers are seeing the benefits with lower monthly electricity bills. While the PECO price to compare prices will be dropping this summer, even lower electric prices can be obtained through the Pennsylvania competitive electricity choice market.

Here are current competitive electric prices in PECO, prices are updated in real time.

Electricity rates will be increasing for PP&L customers who remain on the default “Price to Compare” rate on June 1, 2012 for both residential and business consumers. Residential consumers will see a 11.9% increase on their electricity supply charges which include electricity generation and transmission costs.

PP&L is encouraging their customers to shop for competitive power in order to lower their electric bills. Competitive electric rates are available that are lower than the default rates. Pennsylvania electricity choice allows consumers to shop and compare electric rates from multiple power companies. No matter which electricity company is chosen to supply power, PP&L customers continue to receive power delivery service and their monthly electric bill from PP&L.

Many consumers still paying the “Price to Compare” rate offered by PP&L are doing so out of loyalty. Customers should understand that PP&L is not in the business of offering competitive generation rates and are now only in the business of delivery the power and managing the distribution lines. PP&L does not profit from the default rates that they offer, and instead passes the revenues from these charges onto other energy companies who have won the contract to provide service to default paying customers through an auction process.

Customers who refuse to shop for the best electric rates will see the price they pay for electricity go from 6.935 cents on May 31, 2012 to 7.993 on June 1, 2012. So far 40% of all residential customers in the PP&L utility area are buying power from competitive electricity companies. That number is expected to grow to over 50% by the end of the summer, resulting in the majority of the market being participants in energy choice.

Below are the best electric rates available from competitive suppliers. The rates are updated daily.

The Illinois energy choice laws are allowing consumers to compare electricity rates in Chicago, and the results have been lower ComEd electric bills with zero downside.

Choosing to buy electricity from an alternative electricity company at lower generation electric rates than the ComEd default rates simply allows the citizens of Illinois to pay less on their monthly electric bill. When you compare electricity rates in Chicago it is important to make sure that you are comparing apples to apples. For residential customers, the Illinois Commerce Commission demands that all electricity companies offer rates on the same playing field and that they include both generation and transmission. However, consumers do need to make sure that the rate they choose is fixed and not variable.

Many electricity companies offer variable rates that do not contain limits to how high the price can go. The electricity company will market their variable rate with an initial rate. This rate will only be guaranteed for the first month, after which the rate can go up immediately. On contrast, fixed electric rates will not change during the term of the contract. If the fixed rate is set at a lower price, when compared to the default rate, you are guaranteed to pay less for your electricity.

Many consumers may not want to switch electricity companies because they fear the contract. The truth is that the contract is a good thing as it protects the consumer, indicating what the electric rate will be and for how long (the term). Electing to receive power from a company without a contract will put the consumer at extreme price volatility risk. Furthermore, the Illinois Commerce Commission oversees the contract language allowed by the electricity companies. In conclusion, taking the time to compare electricity rates in Chicago will result in huge electric bill savings.