More than 360,000 electricity customers in western Pennsylvania will see a 16.8% increase on their West Penn Power electric bills this summer. West Penn Power, a electric utility company who services around 550,000 residential power consumers, will increase their generation supply rate from 5.386 cents to 6.29 cents. The substantial electric rate increase will only apply to those West Penn Power customers who have not shopped the competitive marketplace for lower power rates. These customers pay a default rate for power supply known as the Price to Compare.

Electricity customers can avoid this price increase by finding a low electric rate offered by a competitive supplier. Through Pennsylvania electricity choice, when a customer chooses to buy their power from a competitive supplier the competitive rate replaces the utility price to compare. West Penn Power, formerly known as Allegheny Power, has had low default price compare rates over the last two years that has kept the overall switch rate in the area below 30 percent. However, with the default rate now poised to increase by almost 17 percent, the number of West Penn Power shoppers is expected to increase exponentially.

When shopping for lower electric rates in West Penn Power, make sure that the rate is an apples to apples comparison to the West Penn Power price to compare. The rate should include generation, transmission, the gross receipts tax (GRT), and should not have any additional monthly fees or switching fees.

The number of PSEG electricity customers who are purchasing their power from competitive suppliers remains below 14% as of May 2013. Though the number of competitive power shoppers has steadily increased, the overall electric switch numbers are low compared to other competitive power markets in the United States. The slow number of shoppers has occurred despite rising PSEG default rates and low competitive electricity rates that are yielding electric bill savings above 20% in some cases.

For those PSEG power customers who have accepted New Jersey electricity choice into their lives, the result has been lower PSEG electric bills and price security into the near future. There are currently 246,000 residential customers in the PSEG service area buying their power from competitive energy companies out of 1,835,000 households in the area. These consumers have taken the time to compare electricity rate offers and find the best offer that fits their specific needs.

Many people have pointed to the slow growth of the New Jersey electric choice market to the limited marketing the state has implemented to educate their citizens. In contract, the Texas and Pennsylvania state governments have marketed electric choice with consumer friendly websites. In both states residential electricity switch percentages are hovering around 50%.

Others have pointed to the difficulty in finding the correct identification number on the PSEG electric bill to submit a switch request. In Pennsylvania the number needed to submit a switch request for the two largest electric utilities PPL and PECO Energy, is a simple 10 digit account number clearly visible at the top of the electric bill on every page. In contrast, the number needed for PSEG electric switch requests is the POD ID number which is an 18 digit number that follows the letters “PE” and can only be found in one small place situated mid-page. Some elderly consumers have complained that once they actually find the number the print is too small to even read. Furthermore, if PSEG also provides gas to the customer, a second POD ID exists on the bill for gas service which the customer often confuses as the electric POD ID.

Though electricity choice in New Jersey has had its hurdles, the private sector has stepped in to help push the ball that is already rolling slowly. Competitive suppliers are offering lower electricity prices and information sites such as NJelectricity.org have been developed to help educated New Jersey consumers about their energy choice options.

Competitive PSEG electricity rates updated daily: