PPL Electric Providers

The purpose of this article is to briefly explain the different type of electric providers in the Pennsylvania PPL electric market.

With the competitive electric market in the PPL utility territory maturing, business and residential customers are starting to become more familiar with some of the 30+ alternative suppliers’ brand names.

With many consumers the idea of electricity choice is still a foreign concept, and difference between providers is minute.  In reality the difference between some electric providers can be vast.  To start, though all electric providers are selling the same end product, electricity, how and who they sell it to will determine if they can be a right fit for you.

I put the providers into three categories:  Level 1 (Bait and Switch), Level 2 (Fixed Rate), Level 3 (Large Business Complex).

Level 1 providers are providers like Viridian and Glacial Energy.  They present an easy and friendly way to switch showing an introductory rate that is less than current default rates.  There rate is a floating rate that can changed at anytime.  Their market is usually small businesses who spend less than $1,000 a month.  They attract a customer who is unwilling to sign a more complex contract that would allow them to lock into a low fixed rate.

Level 2 providers offer customers a true fixed rate that will not fluctuate during the term of the contract.  Their contracts are more complex than that of the Level 1 provider because they are essentially buying the power for the specific customer on the wholesale market in advance.  This is how they are able to offer a fixed rate.  Providers like this include Liberty Power, Con Ed Solutions, and Direct Energy.  Their target markets are businesses that have good credit ratings.

Level 3 providers are usually only willing to service large business customers.  They tailor their rate products and contracts for those customers.  Their contracts are usually the most complex and often the customer will benefit by having a licensed broker represent them in negotiating the contract with the provider on their behalf.  The complexity of the contract is however justified as the provider is making a large investment, by agreeing to buy a large block of energy, for the customer and in doing so can save the customer a lot of money on their energy expenses.  Though not always limited to these type of transactions, some of the providers that are more likely to fall into this class are Suez Energy, UGI Energy Services, and Constellation New Energy.

For more information on specific providers, feel free to leave a comment or send and email.