Many energy consumers in Massachusetts are unaware of a massive price hike that is getting ready to go into effect that will greatly increase the size of their monthly electricity bills. Residential customers of National Grid will experience a rate hike of 40% for their power supply. The rate hike will effect all residential customers who are on the basic service rate, which includes all consumers who have not switched to a competitive electricity supplier.

As an energy choice state, Massachusetts consumers have the ability to shop for lower electricity rates offered by licensed competitive energy suppliers. The competitive suppliers offer rates for the generation component of the electricity. Utilities such as National Grid continue to act as the regulated power delivery company. Customers who haven’t shopped and purchased competitive power pay the basic service rate offered by National Grid. The basic service rate is a default rate for electricity generation supply and is determined by an auction process effected by wholesale power prices. After the completion of the auction process, basic service rates stay in tack for six month periods. On November 1, 2015 a new period will begin causing the price to rise substantially for those consumers who are still on the default basic service rate structure.

Currently National Grid residential customers in Massachusetts are paying $0.09257 per KWh for their power supply. That price will increase to $0.13038 on November 1, 2015 which equates to a 40% price increase that will be seen on National Grid electric bills starting in late November. Residential customers in the National Grid service area have enjoyed the lower $0.09257 rate since May of this year. The 40% increase is going to surprise many consumers who do not keep up with energy market trends. While some consumers have complained that Massachusetts energy choice is bad because it adds another product on the list to shop for, those who have taken advantage have been able to reduce their electric bills month after month. It is important to understand that the purpose of basic service rate is to act as a default price for those consumers who are unwilling to take the necessary time and shop for better pricing options.

Customers who are willing to shop for lower Massachusetts electricity rates will be pleasantly surprised. There are many electricity suppliers who are competing with each other for new National Grid customers, offering rates that will save basic service paying customers substantial amounts on their electric bills. In order to sell electricity in Massachusetts a supplier must be licensed by the Department of Public Utilities, which minimizes the risk of consumers receiving unworthy offers. All electricity rate offers listed below are a direct comparison versus the National Grid basic service rate. Customers can avoid the November 2015 rate hike by enrolling in a competitive rate plan.

PECO Energy increased their rates for generation and transmission service on September 1, 2015. The company had been charging their customers $0.082 from May 1st through the end of August, but when the calendar turned to September the rate went up to $0.0849 which is a 3.5% increase. Though small, the increase comes at a time when people are trying to reduce their monthly expenses due to a struggling economy and rising costs.

Alternatives due exist for PECO Energy customers due to the fact that Pennsylvania is an energy choice state, which allows them to shop for competitive electricity suppliers. In Pennsylvania alternative electricity suppliers can offer service to customers for their generation and transmission costs, which is the component of the PECO electric bill that recently increased.

PECO Energy provides power to the city of Philadelphia and the surrounding suburbs. By taking the time to compare electricity prices in Philadelphia, these customers can get off of the PECO default rate and start paying less for electricity.

Generation and transmission costs make up the official PECO Price to Compare rate, the price that PECO charges to their customers for electricity generation supply who do not buy their power from an alternative supplier. Currently several alternative PECO electricity suppliers are offering electric rates that are lower than the price to compare; a scenario that will result in lower electric bills for a customer who decides to switch suppliers.

As of June 1, 2023, 21% of PECO residential customers have elected to purchase their power from an alternative supplier. The remaining four-fifths continue to purchase their power supply from PECO Energy at the higher price to compare rate.

The competitive electricity market provides an easy way for customers to save money. Customers who do not shop for lower rates are paying more for their electricity than what is needed. As a utility company, PECO Energy is in charge of delivering power to all of their customers at regulated distribution charges, regardless of who the customer chooses to supply their power.

PECO Energy is also responsible for charging default rate payers the price to compare for their power supply, however they do not profit from this side of the business. Instead they collect that money and transfer it over to electricity suppliers who won previously held auctions to provide power to the default rate paying class.

PECO Energy customers who are still paying the default price to compare rate can save money by shopping for alternative electricity suppliers below. All supplier and their rate offers have been approved by the Pennsylvania Public Utility Commission.

Ohio electricity customers who receive their monthly electric bill from Dayton Power and Light have a tremendous opportunity to save money by switching their electricity supplier. As one of the smallest markets in the state, competitive suppliers have overlooked advertising to Dayton Power and Light customers until recently, instead deciding to focus their marketing efforts on some of the state’s larger markets such as AEP. However, as the market has matured and electricity choice awareness has increased, more electricity companies are attempting to gain new customers in some of the smaller utility markets. The Dayton Power and Light market is particularly attractive due to the current default price conditions that residential customers are paying; competitive prices are well below the default price providing customers new to electricity choice a powerful incentive to switch to a new electric company.

Ohio has been working towards developing a better electricity deregulation market allowing residents to more easily choose an alternative electric supplier for their generation power costs. Electricity price advertising has helped Dayton Power and Light consumers better understand the Ohio electricity choice laws. Many new power shopping customers are surprised to learn that even after they switch electric suppliers, their local utility will continue to deliver the actual power to their home and in most cases mail the same electric bill. This means that even after a Dayton Power and Light customers switches electricity companies, DP&L continues to maintain the reliability of the power lines in the area and mail out the same electric bill, with the competitive rate chosen replacing the DP&L default rate.

Despite the large savings potential for residential customers in the area less than half have taken the time to switch electricity companies. Competitive rates are currently around 20% lower than the DP&L default rate, making electricity choice and switching one of the easiest ways to save money on a necessary expense. Shop and save below from a list of Dayton Power and Light competitive electricity plans that have all been approved by the state of Ohio. The switching process is all done through computers. Customers do not need to be home when the switch is made and a person does not physically come to the property to make the switch.

Energy choice has expanded in Maryland, resulting in a growth in licensed electricity suppliers offering service to customers. With the increased competition among electricity suppliers, many of these companies are starting to solicit customers in some of Maryland’s smaller markets such as Delmarva Power & Light. Until recently the majority of these electricity suppliers would only focus their attention on BG&E, Maryland’s largest electric utility market. While relatively small at about one-sixth the size of BG&E, Delmarva Power & Light has grabbed the attention of energy marketing executives as they have come to realize that they can offer consumers in the area significant savings versus the utility standard offer service.

Delmarva Power & Light delivers electricity to nearly 175,000 residential customers and another 32,000 businesses of all sizes. As of December of 2014, only 16.2% of residential customers and 31.6% of small business customers were buying their power form a competitive supplier. Delmarva customers who do not choose a competitive energy supplier continue to purchase their power supply from the utility’s standard offer service which is a default rate structure. The standard offer service price is produced through an auction process where Maryland electricity suppliers bid for the right to supply power to a portion of the default customer pool. The outcome of these auctions is largely based on the condition of the wholesale energy markets during the time of the auctions. Due to high volatility in these markets over the last year, the current Delmarva Power & Light standard offer service experienced a steep rise in early June, at a time when wholesale energy prices have fallen over the last several months. The difference in the two price sets have allowed competitive Maryland electricity suppliers to offer residential customers rates that are lower than the Delmarva standard offer service.

The primary reason most people begin their research into competitive power prices is to save money. Locking in a competitive electricity rate that is lower than the current Delmarva standard offer service rate you will guarantee savings on the supply portion of the Delmarva Power & Light electric bill. With current competitive electricity rates yielding as much as 11% versus the standard offer service, the incentive to switch now exists for consumers, and as a result the number of customers buying their power from a competitive supplier is expected to increase significantly in the DP&L area. Find a list of Delmarva Power & Light competitive rates below from electricity suppliers licensed by the state of Maryland. All rates are updated in real time.

Maryland energy choice allows for consumers to shop for competitive electricity and natural gas rates offered by alternative suppliers. The utility companies in the state that customers have grown to become familiar with continue to function as their role as the utility for their specific service area; they continue to deliver power to their customers through the power and gas lines through regulated distribution charges. Until recently the Potomac Electric Power (PEPCO) service area in Maryland had been overlooked by many competitive suppliers as companies focused their marketing efforts on BG&E, the state’s largest utility, as well as other larger service areas in Pennsylvania and New Jersey. The combination of market maturity and volatile energy prices has changed that and put the PEPCO Maryland service area on the map of electricity suppliers looking to attract new customers.

As Maryland’s second largest electric utility, PEPCO provides power to over 550,000 total customers in the state. The residential customer pool in the area was over 500,000 at the end of 2014, giving competitive suppliers over a half million new customers to solicit. Competitive Maryland electricity companies have recently started to focus more attention on acquiring PEPCO customers due to the widening space between the standard offer service rate for electricity and the rate these companies are able to offer. Through Maryland electricity choice customers can shop for a competitive generation and transmission rate, also known as the electricity supply price. If a customer does not choose a competitive plan for their electricity supply than they pay a default rate through PEPCO called the standard offer service.

The standard offer service rate, or price to compare, recently went up due to market conditions in wholesale electricity. PEPCO oversees an auction process to determine the standard offer service price. After the auction for summer 2015 rates was completed, energy prices began to drop allowing competitive suppliers to buy power contracts on the wholesale market and start offering lower prices to PEPCO consumers. Now that competitive electricity suppliers are able to offer fixed rate contracts to PEPCO customers that are well below the PEPCO standard offer service rate, a true incentive exists for both suppliers and customers to participate in the Maryland electricity choice market.

That incentive, of course, is the ability for consumers to find cheaper PEPCO electricity rates and thus pay less money on their monthly electric bills. When a customer chooses a competitive price plan that rate simply replaces the PEPCO standard offer service rate, so the savings are simply and easy to understand. Current PEPCO rates offered by licensed electricity suppliers are shown below.

With the recent announcement by PSEG that they will be raising their basic generation service rates for their residential and small business customers, many consumers are starting to search for the best alternative to PSEG. Through New Jersey energy choice laws, all PSEG customers have the option to shop the competitive electricity market for an alternative electricity supplier. While these companies are alternatives to PSEG, the quality of the power is the exact same as the power continues to be delivered though the same power lines and wires.

New Jersey has set up a fairly simply electricity choice market where utilities such as PSEG continue to deliver power to their customer base no matter who the customer chooses to supply the power. The alternative electricity companies offer rates to customers that represent the electricity generation and transmission portion of the electric bill. PSEG and the other three major New Jersey utilities receive revenues through the distribution charge on the electric bill which remains regulated by the New Jersey Board of Public Utilities.

The best alternative companies to PSEG are those that offer a fixed electric rate that is lower than the basic generation service charge. If a customer does not choose an alternative supplier they pay the basic generation service charge for power supply which is the PSEG default rate. Finding an electricity supplier that offers a rate lower than the default rate will result in a lower PSEG electric bill. However, it is also important that the rate is fixed for at least several months, otherwise the electricity supplier will likely increase the rate after the initial month.

Pennsylvania Power and Light customers are once again taking advantage of energy choice laws to save money on their electric bills. When the PPL service are first became truly competitive in 2010 many customers found that they could lower their PPL electric bill by shopping for competitive electricity rates. In the last several years the growth in the number of customers buying power from competitive electricity suppliers leveled off as the difference between the lowest competitive electric rates and the PPL price to compare default rate got closer to parity. With that gap now widening again, residential customers in the PPL service area once again have the ability to save on energy expenses by participating in energy choice.

Electricity choice in Pennsylvania allows customers the ability to save on their energy bills if they are able to find a competitive electricity offer that is lower than their utility default rate. Currently in the PPL service area the lowest competitive rates are showing savings above ten percent versus the price to compare default rate. Though there are many energy savings products available that provide ways to save on energy through energy efficiency consumption, the easiest way to save on energy bills is to purchase low cost electricity. It takes less than five minutes to compare, choose, and enroll in a competitive electricity plan like the ones below, all of which are approved by the Pennsylvania Public Utility Commission.

Electricity customers in New York City are looking for lower rates after a Con Edison rate hike that took effect in February. NY City consumers who receive their electric bill from Con Edison, and who are not currently on a competitive electricity rate plan, will see their rate jump to an average of $0.1637 cents per KWh on their March bills for the service month of February. The high Con Edison rate is 60% higher than the lowest Con Edison electricity rate offered through New York electricity choice laws. By entering into an electricity contract with a competitive energy supplier a customer can replace the high default rate with the rate being offered by their chosen supplier.

Con Edison offers a default variable rate for electricity supply for their customers who do not shop the energy choice market. The variable rate leaves customers at the discretion of the market which can bring about big surprises from month to month. In contrast, locking in a low fixed electricity rate gives the same consumer stability in their electric bill amounts. The customer who locks in a fixed rate for 12 months or more may not save money versus the Con Edison variable rate very single month, however they will at least know what to expect and not be thrown any surprises that can effect their overall budgets.

With the implementation of New York electricity choice, Con Edison’s main role is to deliver power to homes and businesses through the regulated lines and wires. When purchasing power for their default paying customers, they simply buy what is available on the wholesale market; they are not looking out for their customers best interest as this is not their responsibility. This strategy can often lead to customers paying much more for electricity than they should, as will be the case for thousands of NY City consumers on their March electric bills.

NY City electricity customers who have not yet selected a electricity rate from a competitive supplier should do so immediately in order to protect themselves from high variable electric rates that can hit at any given month. All rates offered below are from suppliers who are regulated by the New York State Public Service Commission.

Electricity bills in the Connecticut Light & Power service area are increasingly being reduced due to competitive power rates being offered by alternative CL&P energy suppliers. Customers are lowering the price they pay for electricity by choosing to sign electricity agreements with alternative energy suppliers who are licensed by the state of Connecticut. Choice awareness among the CL&P residential class has expanded in recent months due to rising generation supply rates that are offered by CL&P. Customers who do not choose an alternative CL&P energy supplier pay a default rate for their electricity; that rate recently saw a 25% increase.

Alternative energy suppliers have entered the Connecticut electricity choice market in hopes of gaining market share by offering electricity rates that are lower than the CL&P default price. Energy shoppers are becoming more aware of their options as alternative electricity suppliers have increased their marketing budgets. The infusion of new energy suppliers are helping to educate a larger pool of customers so that they can take advantage of the best CL&P electricity prices being offered that can result in substantial monthly savings.

Whenever rates see a significant increase consumers start to look for alternative solutions. In energy choice states such as Connecticut, the clear alternative is to shop around for a lower electricity rate. Connecticut people who are switching to alternative suppliers for the first time are often surprised as to how easy the process is and wonder why they haven’t done it sooner. The CL&P basic generation charges, the default rate, had remained stable over the last year before January 2015. With stable prices uninterested customers had little incentive to learn about electricity choice and shop the market. Now with savings above 30%, the incentive is there for customers to learn about alternative energy suppliers and their offers.

If you reside in the Boston area, or the surrounding suburban cities, you have grown accustom to receiving your monthly electricity bill from NSTAR. You may have been surprised in February when your electricity bill arrived with a new name on the header. Looking for the familiar NSTAR name and logo, you were instead greeted by the new company name Eversource Energy.

NSTAR has not been bought out by another company nor did they participate in a corporate merger. The name change is instead a rebranding effort by the company that owns NSTAR and several other high profile utility companies in the New England and northeast area. In addition to NSTAR, National Grid operating in both Massachusetts and New York, Western Mass Electric, and Connecticut Light & Power are all going through the name change to Eversource Energy. The company wants to create a brand name that can be easily recognized across all of the markets that they currently service.

The timing of the name change has not been good for the people at Eversource as severe rate hikes through many of the company’s electric utility default rates have taken place over the last few months, prompting consumers to think that the name change is related to the price hike. The reality is that this is just a coincidence. NSTAR, National Grid in Massachusetts, Westerm Mass Electric, and CL&P have all recently increased their electric default rates due to the results of auctions they held for the price in late 2014. The price increases are about 20-25% in Connecticut while they range from 30-100% in Massachusetts. Customers can lower their electric bills by shopping for a lower electricity supplier in their state. In an attempt to obtain new NSTAR customers, energy suppliers are offering low electricity rates in Boston that provide savings of up to 30% when compared to the NSTAR generation default price.

While the name is different the role that Eversource Energy plays is the same. This role includes delivery reliable power to homes and businesses, responding to power outages and other power lines and wires malfunctions, sending out and collecting money for the monthly electric bill, and providing a default rate for generation supply. For customers looking to lower their electric bill they can choose a lower electricity rate which will replace the Eversource default rate, even though Eversource will continue to send out the electric bill and respond to power failures.