Higher PPL Rates Push More to Shop
September 18, 2013
Already one of the most successful electricity choice markets in the country, Pennsylvania could get a boost in their number of power shopping customers due to recent utility rate increases. The state’s second largest electric utility, and most active service utility market in regards to number of shoppers, has increased their default electricity rates by 18.5% since May. Pennsylvania Power & Light (PP&L) raised their price to compare default rates to 8.227 cents from 7.4 cents on June 1. Another rate increase to 8.77 cents went into effect for the 57% of PP&L residential customers who are still buying their power from the utility’s default rate service program.
In terms of number of residential customers currently purchasing their power from a competitive supplier PP&L is Pennsylvania’s most active choice utility market. Currently 534,341 residential customers encompassing 43% of the total residential class has elected to shop for lower PP&L electricity rates found through third party suppliers. Customer who have locked in fixed electric rates with alternative energy companies will not be affected by these rate increases. Customers who are still on the PP&L default rate can prevent the rate increase by locking in a low fixed electric rate available in the competitive market. Competitive electricity prices replace the PP&L default rate on the electric bill offering easy-to-see savings.
Many residential customers who have not shopped for competitive electric rates are intimidated by the number of offers being solicited to them from numerous energy companies who they have never heard of before. Customers should take ease in the fact that all energy companies offering them service are licensed by the Pennsylvania Public Utility Commission. They should however be careful of deceitful marketing practices that offer a teaser rate that quickly jumps up after the initial month of service. Below is a list of electricity rate offers pre-screened by electricitywatch.org, all prices are apples-to-apples comparisons to the PP&L default rate.
