The Commonwealth Edison Company, responsible for delivering power to 3.8 million electricity customers in northern Illinois, recently raised their electricity supply rates for residential customers by 20%. The increase went into effect on October 1, 2012. The new high rate of 8.32 cents includes generation and transmission charges. The 8.32 cents does not include the “Purchase Electricity Adjustment” which is a true-up payment ComEd charges or refunds customers based on the difference between what ComEd paid to acquire power supply for the default customer class and what ComEd actually charged this class of customers. ComEd has estimated that this true-up cost will be another $0.005 from now until May 2013. If this estimated increase is accurate, it means that the true price to compare will be closer to 8.8 cents per KWH for default paying customers in the ComEd territory.

Default paying customers include all electricity customers who receive their electric bill from the Commonwealth Edison Company who have not chosen a competitive electricity supply company to provide them with competitive eletric rates. Customers can eliminate the increase, and even pay less for electricity than the default rate of 6.935 cents that was offered during the summer by participating in the Illinois electric choice market and shopping for electricity rates that are competitive. Switching off of the high ComEd price to compare rate and onto a lower electric rate offered by a competitive electric supplier will also eliminate the “Purchase Electricity Adjustment” charge on the ComEd electric bill.

With competitive rates being as low as they are (see below) the number of power shoppers in Chicago and surrounding areas is growing rapidly. People are starting to understand that electric choice can simply provide a lower ComEd electric bill without sacrificing quality. ComEd is still in charge of delivering power and responding to power emergencies for their 3.8 million customers in northern Illinois. Furthermore, ComEd continues to deliver the monthly electric bill to their customers. Switching electric suppliers simply amounts to the rate on the supply section of the ComEd electric bill to be altered.

Competitive electric companies are able to offer substantial savings versus the Commonwealth Edison default price to compare rate. While many consumers are catching on, there are still many who have not had the time to research the benefits of energy choice. For more information on competitive electric rates in ComEd, see our daily update prices from approved suppliers licensed by the Illinois Commerce Commission.

PECO energy customers who have yet to shop for a competitive electricity rate are about to see their electric bills rise substantially. PAElectricity.org, an energy price information site for Pennsylvania consumers, has reported that a PECO residential rate increase that will go in effect on October 1. The increase will only effect those customers who are still paying the default rate for electricity supply with PECO; which represents all residential customers who have not chosen a competitive energy supplier to provide electricity for their home.

The average household using 1,000 KWh a month will see their PECO electric bill rise by $15.95 a month. That household, using 1,000 KWh a month, who would have paid a rate of $0.08905 per kilowatt hour in September will pay an additional $0.01595 starting in October for a total rate of $0.108 per kilowatt hour. PECO residential customer will pay $0.1050 per KWh for the first 500 KWh they consume, and $0.1114 for all kilowatt hours above that. This means that the more energy you use the higher your rate will be. Most houses use more than 500 KWh of electricity per month.

Fortunately, PECO residential electricity customers can protect themselves against the rate increase and pay even less than what they were paying in September. Several state licensed electricity suppliers (see below) are offering competitive electric rates to PECO energy customers that will offer huge savings versus the PECO default rates.

People who have been slow to shop for competitive rates often have lack of understanding of how the Pennsylvania electricity choice market functions. Here is what you need to know about switching off of the PECO default rate and onto a lower competitive electric rate:

1. The quality of the power will be the same.
2. PECO Energy remains your regulated electricity delivery company.
3. PECO Energy will continue to send you your monthly electric bill.
4. The lower competitive rate will replace the PECO default rate (generation and transmission)
5. PECO will not be upset that you have switched and are now saving money.

The last statement is often confusing to consumers who are new to electricity choice. Through the Pennsylvania energy choice act, PECO Energy remains a regulated utility company who generates revenues from the regulated distribution charges found on your electric bill. Those distribution rates are the same no matter who you choose to supply your electricity (generation and transmission rates)

Here are current competitive electric rates for PECO Energy customers that will save you money against the higher PECO default rates:

Duquesne Light no longer offers the cheapest electric rates in Pittsburgh. The keystone state’s decision to restructure their electricity market and give consumers a choice of who supplies their home with power has pushed prices down.

Competition has allowed alternative energy companies to enter the market, offering electric rates that are cheaper than Duquesne Light rates. Duquesne Light serves as the regulated power delivery company in the Pittsburgh area. They charge utility delivery rates that are monitored by the Pennsylvania Public Utility Commission, as well as default supply rates for Pittsburgh electricity consumers who do not take the time to shop for cheaper electric rates.

Customers in Pittsburgh looking to lower their Duquesne electric bill can to so easily by selecting a competitive electric rate from an alternative electricity company. The competitive electric rate will simply replace the Duquesne Light default rate on the bill, so if the rate is lower the customer’s bill will be less.

See updated electric rate offers below being offered in the Duquesne Light service area.

The competitive residential electricity market in Illinois continues to grow as consumer awareness of energy choice increases. Electricity choice has been steady in the Illinois commercial market, however residential awareness has only seen significant growth in the past year.

All four main utilities in Illinois – ComEd, Ameren I, Ameren II, Ameren III – have seen extreme growth in customer participation over the last twelve months. In July of 2011 the total number of Illinois electricity households buying power from a competitive supplier was just over 54,000 with just over 52,000 of those customers living in the ComEd territory. In July 2012 the total number of Illinois choice customers jumped up to over 800,000 with 527,000 of these customers located in the ComEd service area. The three Ameren areas went from having just below 2,000 shoppers in July of 2011 to over 270,000 in July of 2012.

The huge market growth has been a direct result of low electric rates that competitive energy companies have been able to offer to Illinois consumers compared to the utility default rates. When Illinois electricity consumers do not shop for competitive electric rates they end up paying a default rate for their generation supply service. The default rate, called the price to compare, is determined by several auctions held by the utilities for energy companies who wish to bid for the right to serve a percentage of price to compare customers. Since the Illinois energy choice law allows consumers to switch off of price to compare service and onto a competitive rate at anytime, the energy companies must put a premium on their price bids. The rapid move of customers taking the time to find cheaper electric rates has further increased this premium.

Meanwhile, those customers who do take the time to learn about Illinois electricity choice and compare electricity rates will be able to save a significant amount of money on their electricity bills. Most competitive electricity companies offer single billing which means that the Illinois consumer continues to only get one electric bill from the utility (ComEd, Ameren) that they are used to getting the monthly bill from. The competitive electric rate simply replaces the supply charges, which include generation and transmission, on the electric bill. If the competitive rate is less than the sum of the generation and transmission utility default rate you will pay less and save on your electricity bill.

Find your Illinois utility below and choose a competitive electric rate so you can start saving money!

After having seeing a significant rate drop on electricity prices for the summer, PECO electric customers were surprised to learn that their power generation rates are expected to go back up in October. PECO Energy announced the expected rate increase, which will last through the end of the year, on their website in July. The finalized actual rates should be posted in August, but for now the increase will raise generation supply charges by over 18% on the PECO electric bill.

Fortunately customers can get a lower PECO bill by shopping for competitive electric rates through alternative energy suppliers. PECO Energy, who delivers power to the Philadelphia region in southeast Pennsylvania, charges customers who have not selected a competitive supplier a default electric rate. The default rates include the charges on the bill for generation and transmission. When consumers use their right to shop the market and select a lower electric rate, the competitive rate replaces the default generation and transmission charges on the bill.

Customers who have locked in low fixed electricity prices in previous months will not be effected by the PECO rate increase in October. The Pennsylvania electricity market gives consumers the ability to take control of their electric bill. Those consumers who have embraced competitive electricity are reaping the benefits while those who have shied away are paying more to power their homes than they need to. News of the PECO rate increase should provide a reason for many first time shoppers to explore the competitive market and find a low electricity rate.

Atlantic City Electric residential customers paying default rates for their power supply service experienced a rate reduction of 5.7% in June. The Atlantic City Electric price to compare, the price consumers pay for electricity generation service who have not shopped for competitive rates, had been at $0.1224 since February of 2012. On June 1, that rate dropped to $0.1154.

While the rate reduction gives a slight relief to price to compare paying customers, competitive energy suppliers were quick to point out that these customers can save even more by shopping for competitive electric rates with current savings as high as 18% off of the ACE price to compare rate. Through New Jersey energy choice laws consumers have the ability to choose who supplies their home with electricity.

The energy choice laws maintain Atlantic City Electric as a regulated utility for southern New Jersey, responsible for delivering power to homes and businesses within the region. However the generation supply, the cost to produce the electricity at retail prices, is open for consumers to shop for the best prices. Those consumers who do not participate in New Jersey electricity choice automatically pay the price to compare rates offered by their local utility company. Competitive electricity prices provide an easy way for customers to significantly lower their Atlantic City Electric bill. Even after choosing a competitive supplier, Atlantic City Electric continues to deliver the monthly electric bill to their customers. The competitive electric rate simply takes the place of the price to compare supply charge.

Here are some of the lowest current competitive electricity rates in the Atlantic City Electric service territory.

Summer electricity rates for PSEG customers on supply default rates have been announced. The PSEG default rates are named Basic Generation Service (BGS) charges by the New Jersey Board of Public Utilities. Customers who do not shop for competitive rates, offered through the New Jersey Electricity Choice and Competition Act, pay the BGS charges. Those customers who do shop for competitive electricity prices can find rates that are significantly lower than the BGS charges resulting in a lower PSEG electric bill. The competitive rates include all charges listed under the “Electricity Supply” section on the PSEG electric bill.

All BGS charges on the PSEG bill include the state SUT tax. The New Jersey Board of Public Utilities requires all competitive electricity companies to include the SUT in their rate offerings to residential customers so that consumers can compare PSEG electricity rates smoothly and accurately, eliminating potential hidden fees that companies might otherwise try to impose.

Starting on June 1, 2012 residential customers paying BGS rates will pay $0.1097 per KWh for their first 600 KWh and $0.119038 for everything in excess of 600 KWh. Most residential properties bigger than a one bedroom apartment will consumer more than 600 KWh. The average BGS customer will pay over $0.1100 on their electric bill this summer. Competitive rates (see below) can reduce the rate per KWh tremendously resulting in a lower PSEG electric bill.

Duquesne Light customers who have not shopped for competitive electricity rates are paying much more for power than they need to. Recently Duquesne Light increased their price to compare rate, the rate customers pay for electricity who have not selected an alternative supplier, from 9.32 cents to 9.89 cents. Meanwhile competitive rates give consumers the ability to pay as little as 6.47 cents which is 35% less than the current default rate.

The amount of money electricity consumers can save in the Duquesne Light area is among the highest in competitive energy markets in the country. Word of the potential to save on electric bills is getting around in the Pittsburgh area as 38% of residential customers have switched electric suppliers in order to get off of the high Duquesne Light default rate. Duquesne Light serves around 500,000 residential customers in the Pittsburgh and surrounding areas.

The Duquesne Light customers who are still paying the default price to compare often have a misunderstanding of how Pennsylvania electricity choice has been set up as well as a lack of trust in the alternative energy companies offering rates. These consumers should understand that switching electricity suppliers will not end their relationship with Duquesne Light. Duquesne Light will continue to deliver power to their customers no matter which electric supplier is selected to provide power. In addition, Duquesne Light also continues to send the monthly power bill and respond to power failure and emergencies.

The Duquesne Light price to compare is determine by an auction process where competitive energy companies bid for the right to service default paying customers. These companies have submitted bids with a premium on the pricing since at any time default customers can leave the default rate and sign a contract with an alternative energy company offering a lower electric rate. Duquesne Light collects the money for the default rates and passes it through to the energy companies who have won the previously held auctions. Duquesne Light does not care if their customers switch electric suppliers because their revenues and profit margins are derived from the delivery charges found on the Duquesne Light electric bill.

The delivery charge remain regulated by the state of Pennsylvania. Often consumers fear that if they switch to a lower electric rate than Duquesne Light will “make up the difference” by increasing their delivery charges. This could not happen since the delivery rates are approved at the state level for the entire class of residential customers. Furthermore, as noted above, Duquesne Light does not profit from the price to compare default rate that they charge, so it does not hurt them when a customer switches to a competitive electricity company.

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.