The default rate for electricity that customers of ComEd are paying remains relatively high when compared to available competitive prices offered through the Illinois Energy Choice Act. ComEd is the biggest electricity utility in the state of Illinois and is responsible for providing power to the entire city of Chicago and the surrounding suburbs.

The current default price to compare ComEd rate for residential customers is between $0.0743 and $0.0793 cents per KWh. The range is dependent on the ComEd Purchase Electricity Adjustment, which gives ComEd the flexibility of adding up to half a penny, $0.005, per KWh to the default rate each month in order to make up expenses in situations where they pay more for power than the revenues derived from the price to compare customer pool. Meanwhile customers can find low electric rates in Chicago that will yield 9% savings versus the ComEd price to compare.

Chicago customers can also compare ComEd electricity rates that offer other incentives other than just a low price. Some electricity suppliers are offering cash back sign up bonuses, visa gift cards, and even a free Nest learning thermostat which is currently valued at $249. Illinois electricity suppliers are also offering green energy rate products that allow ComEd customers to purchase power derived from renewable resources.

Here is a list of the most attractive electricity rate offers in the ComEd service area, ranging from lowest price to great promotions:

The cold winter of 2013-2014 has resulted in a jump in wholesale energy prices across the country. Rising oil, coal, and natural gas prices have caused higher electricity prices for suppliers, and those suppliers have passed the expense on to their customers where possible.

Many electricity customers in energy choice markets have enrolled in variable rate plans over the last few years. Electricity companies offering variable rates often entice new customers into their service by offering a low teaser rate that shows impressive savings against the utility default rate for the first month. However, with time the variable electric rate inches up month after month, or rapidly if the energy markets see a big spike forcing electricity companies to pass the higher prices onto their customers.

In January and February many electricity customers of North American Power, Energy Plus, and Systrum Energy are seeing their bills double, and in some cases triple, do to skyrocketing variable electric rates. These electricity companies, and others, have attracted customers in over the last several years offering “no contracts” and rewards programs. However, as many consumers are finding out, not having a contract in place can be a costly mistake. Despite rising energy prices, consumers who have elected to enter into fixed electric rate contracts are not being hurt as their rates are locked for a specific term.

Electricity customers who are on variable rate plans should start shopping for fixed electric rates as soon as possible. If you are on a variable rate and haven’t gotten your bill yet it would be a good idea to call your supplier and get an estimate of how much the electric bill will be. Once you receive the electric bill, switching suppliers at that point will guarantee that you receive at least one more bill from your current supplier.

Electricity choice in New York is providing substantial opportunities for Orange & Rockland customers to lower their electricity bills. Through the New York competitive electricity market, energy companies are offering fixed electric rates to residential customers that are well below the current Orange & Rockland default price to compare. The default rate is the rate for electricity customers pay who do not select a competitive New York electricity supplier.

The Orange & Rockland price to compare changes every month and closely follows the direction of the wholesale electricity market. The price to compare is set every month for the following month; default paying customers will find out how much they will pay for electricity in January during the month of December. The default rates are then locked in for one month, however if the market spikes during that month customers will see it on their bills the following month. Since switching suppliers can often take up to two months, customers who do not lock in long term fixed electricity contracts face the risk of their electric bills growing rapidly.

Even though the default rate is in effect a variable rate, disallowing customers to lock in fixed rates that guarantee themselves savings, the 12-month running average of the Orange & Rockland price to compare gives customers a good reference point when comparing prices. New York electricity residential customers can protect themselves from the potential of rising prices by locking in a fixed electric rate with a competitive supplier. Enrolling with a company offering a variable rate doesn’t make a lot of sense since, like the Orange & Rockland price to compare, the rate you choose will only be in effect for one month, after which can rise substantially.

Below is a list of electricity companies offering low rates to Orange and Rockland residential customers. Compare these prices to the 12 month running average of the Orange & Rockland price to compare to get an idea of how much you might save on your monthly electric bills.

 

The heat wave that was present in the Northeast and Mid-Atlantic last week caused a spike in electricity demand which in return increased hourly prices in the electric wholesale market.  Weather is the key variable for electricity demand.  Warmer than average weather causes an increase in demand as people turn their air conditioning down, forcing reliability concerns as wires and transformers overheat.

Customers on variable rates in the Northeast and Mid-Atlantic might see an increase on their next bill.  Larger commercial customers who are on an electricity contract tied directly to the PJM wholesale market will almost certainly see a significant increase on their rate from the last few months.  Residential and small commercial electric customers on a variable rate will see an increase depending on how much of the daily market their provider depends on.  Those providers who rely on the daily market for their entire customer base will be in a lot of trouble as they will be forced to pass the electric rate spikes right onto their customers.

Maryland electric customers, both residential and business, are finding lower electric rates when they shop in the competitive market.  Customers who are served by Baltimore Gas and Electric (BGE) and PEPCO are finding the greatest savings.

The exact rate and savings that you can find depend on your individual rate class by your utility and historic usage patterns, but most electricity customers in Maryland can save between 10-20%.  As an example, current the current price to compare (default rate) for a BGE class G type 1 business customer is $0.1089 per kwh.  We have found a 24 month fixed offer for such a customer at a rate of $0.092 per kwh, a 15 percent savings.

Most Maryland Utility companies, like BGE and PEPCO, offer consolidated billing options which means that customers will still receive their monthly electric bill from their same utility company if they choose to lock in a low fixed rate with a competitive electric supplier.

The National Weather Service’s Climate Prediction Center is expecting a rough Hurricane season in 2010 that may have a negative effect on retail electricity prices.  Electric rates in the majority of competitive electric markets have a direct correlation with natural gas prices.  Bad hurricane seasons result in a decline in natural gas production that eventually pushes electric prices up for consumers.

The Climate Prediction Center estimates an 85% chance for an above normal hurricane season with only a 10% of a near normal season, and a 5% of a below normal season.  They are estimating 166 (Bcf) of natural gas shut in production which may cause electric prices to increase across the country.

The hurricane season is between June 1 and November 30.  Most utilities have default rate structures that cause their default customers to pay higher rates in the summer as oppposed to the rest of the year.  With those two factors added to the fact that at the moment fixed electric rate contracts have been low (10-30% lower than default rates depending on your location and energy consumption patterns), now is an idea time to look into locking in a low fixed electric rate. 

If you are currently on a floating rate you would also want to think about locking into a fixed rate as the floating rate will be affected by a bad hurricane season.  Customers in Pennsylvania, Connecticut, New York, New Jersey, Delaware, Maryland, and Texas should get off of default rates on lock into a competitive fixed electric rate.

The competitive electric market in the PPL territory in Pennsylvania has matured at a rapid pace.  From January 1, 2010 to June 1, 2010 about 30% of commercial and industrial customers have switched to a competitive electric supplier with the number being much bigger for larger consumers.

Competitive rates remain significantly lower than the 2010 PPL price to compare prices.  Small businesses on the price to compare default rate pay $0.10402 cents per kilowatt hour.  We have found rates for such customers this week as low as $0.080 per kilowatt hour, which equates to savings of 23%.

Rates as low as $0.075 per KWh have been found for larger commercial customers (who spend over $10,000 a month) allowing these electric consumers to save 28% off of their monthly bills.

For a list commercial offers, email us with your company name and estimated monthly bill amount.  Also email us if you have any questions.

IS THERE A REASON WHY YOU ARE RELUNCTANT TO SWITCH PROVIDERS?  If so tell us why in our comment section below and we will respond with the corresponding fact as to why you should shop for lower rates.  Right now, in PPL, every customer should switch off of default service and on to a lower rate structure.  We want to debunk any myths that are out there that say otherwise.

Commercial and Industrial business customers on SGS or MGS rate classes being serviced by the Delmarva utility in Delaware have options to lower their electricity bills.  SGS rate class customers pay a default rate of 11.26 cents per KWh and MGS rate class customers pay 11.03 cents.  Both customer classes can lower those rates to below 10 cents per kilowatt hour. 

The lowest rate we found this week was 9.58 cents for a 12 month term (15% savings for SGS; 13% savings for MGS).  If you do not know your rate class you can find it at the top of your Delmarva invoice.

The state of Connecticut reported that as of January 31, 2010 a staggering 58% of small businesses are still on default service with either CLP or UI as opposed to shopping the competitive electricity market and saving money.  The number for residential customers is even higher at 83%.

What makes these numbers so shocking is that competitive rates have in recent months dropped due to a decline in natural gas prices.  Default rates for Connecticut Light & Power (CLP) small business customers is 11.723 cents per kilowatt hour.  Rates can be found in the competitive market at 9.7 cents per kilowatt hour, which equals savings of 19%.

One theory as to why so many businesses have been slow to switch is the uncertainty of the electricity contract that needs to be signed in order to realize these savings.  Consumers should not worry about the contract and instead see it as a benifit.  When you elect to receive a low fixed rate with a competitive provider, they will provide you with a contract that will state the term for which you will receive the low rate.  You should be worried if a provider does not offer you a contract.  In the non-contract scenario you are putting yourself in an position where the provider can charge whatever they want.  The contract binds them to offer you the rate that you agreed upon and will be stated in the agreement.

For more information on electricity contracts or for a list of providers that can offer you savings, feel free to email us, leave a comment, or join our club.

On January 1, 2011 PECO electric customers will come off of decade long price caps and be subject to more recent market rates.  When this happens, customers will have the option to shop the competitive electric market for lower energy prices and multiple product options from 10-20 electric providers that are expected to be active as the calendar turns to 2011.

PECO will offer “Price to Compare” rates, or default rates, for those customers who are slow to shop the market.   These default rates will be determined by a series of auctions that will allow PECO to buy portions of the generation load that they will need to serve their customers at different times so that they are not subject to the electricity wholesale prices at any given time.  PECO is buying energy for their residential customers at four separate times.  Two of those auctions have already taken place with the final two set to occur in June and September of 2010.  After the first two auctions, the combined retail price secured is 9.41 cents per KWh.  PECO customers won’t know their exact price to compare, and how much those rates will be higher than what they are currently paying, until all four auctions have been completed.  At that point PECO residential customers can expect to see competitive electric providers market for their business.

Update:
PECO customers have been reporting great savings on their electricity bills in 2011.

Here are some obvious options for customers to switch to: