Alternative Offers to PPL Price to Compare August 2016

Alternative electricity suppliers in Pennsylvania are offering attractive offers to residential customers of Pennsylvania Power & Light (PPL) that are lower than the utility’s price to compare charges. Despite a recent price reduction in the default rate by PPL, the energy choice market is producing rate offers that can provide savings by as much as 15% to the generation supply section of the bill.

On June 1, 2016 PPL was able to drop the default price to compare rate to $0.07491 from $0.07918, which was a modest 5.4% decrease. However competitive rates offered by alternative PPL suppliers have dropped as well providing even larger savings opportunities. The PPL price to compare rates are the result of auctions that are held months prior to the rate actually taking effect. In contrast, competitive rates offered by alternative suppliers are based on current energy market conditions. If wholesale energy rate offers drop after the auction for the Price to Compare rate is complete, alternative suppliers have an easy time undercutting the default price, which gives PPL residential customers a huge incentive to shop for lower electricity prices.

When the price adjustment went into effect on June first, just under 46% of the residential customer pool were purchasing their power from an alternative PPL supplier. The shopping activity in the PPL service area has been above average compared to other competitive electricity markets in the United States and one of the highest in the state of Pennsylvania. However, even with almost half of the customers already active participants in energy choice and a recent drop in the default price, shopping activity could pickup in August as new alternative offers continue to be presented that offer strong electric bill savings.

Here is a list of current alternative PPL electricity rate offers and their comparison to the recent PPL Price to Compare rate.