In the state of Delaware electricity customers are discovering that they are no longer forced to buy their power from Delmarva Power. Delaware competitive electricity has created an abundance of electric rate options that customers can now choose between. However, with recent increases in the Delmarva default Price to Compare rate and tumbling energy prices, the primary reason new shoppers are materializing is to save money.

Current competitive electricity prices in Delaware are yielding as much as 21% savings versus the Delmarva default rate. The Price to Compare default rate includes electricity generation supply and transmission service while the distribution charges that Delmarva Power charges for the delivery of power remains regulated by the Delaware Public Service Commission. Competitive electricity rate plans replace the Delmarva default price, resulting in a lower Delmarva electric bill if the competitive price is below the published Delmarva Power Price to Compare.

Despite an abundance of plans yielding significant savings, the majority of Delaware electricity consumers continue to be on the Delmarva Power default plan. November shopping activity released by the Delaware Public Service Commission show that only 10.33% or Delaware residential customers were purchasing their electricity using a competitive electricity price. Only 28,755 residential customers had elected to leave the default plan while 249,486 customer remain. On the commercial side, more than 33% of business customers have entered into agreements with competitive Delaware electricity suppliers allowing them to purchase their power from an alternative supplier.

Current competitive Delaware electricity prices are below $0.08 per KWh while the Price to Compare remains at $0.0958, where it has been since August of 2016. Since June of 2014 the Price to Compare has averaged above $0.10 per KWh. Alternative offers to the Delmarva Power default price are listed below by electricity suppliers who are licensed by the state of Delaware.

Saving money on the monthly Eversource electric bill has never been as easy as it now is for New Hampshire citizens thanks to the successful results of energy choice deregulation. Through state legislature, New Hampshire electricity choice laws allow consumers to shop for the power generation supply component of their electric bill from alternative electricity companies. Instead of being forced to purchase power from a regulated utility, New Hampshire Eversource customer can shop for lower electricity prices at desired terms. Customers who are adapting to New Hampshire electricity choice are discovering that they can drastically reduce their Eversource electric bill.

Having competition in business is an important market component that ultimately benefits the consumer as competing firms are forced to trim profits while enhancing the products they sell. Nowhere is that lesson in economics more apparent than in the New Hampshire electricity choice market where customers are seeing savings north of 30% versus the old utility default price. Most consumers are unaware of how the rate they pay for electricity is derived, especially consumers in regulated markets where they become familiar with the mundane process of receiving a disorganized monthly utility bill with a total amount that they must pay or have the lights turned off in their home.

The reality is that electricity is traded on a 24/7 market where utilities and competitive suppliers purchase and trade blocks of power with the goal of selling it to consumers through the monthly electric bill. It is very similar to the business relationship of the bank and homeowner when purchasing a home. The bank buys the home with cash, and then allows the homeowner to make monthly mortgage payments to the bank with a premium in the pricing. In the case of electricity, the utility or competitive supplier is purchasing a block of power through futures contracts for the consumer and then selling it back to the home dweller through the electricity bill with a small retail adder.

Regulated utility customers, or customers who live in states or markets where they do not have the ability to shop for competitive power, pay a rate for the electricity through their local utility. The local utility has a team who purchases the power on the wholesale energy market for their customer base, and then charges a retail adder that is approved by the state utility commission. However, the main component of the charge is going to be determined by the buying strategy of the utility. In a market environment where there is no competition, the utility has no incentive to make sure that they are doing a good job for their customers as they don’t have to worry about losing customers to another company. In contrast a competitive market keeps electricity suppliers on their toes, always looking for ways to cut costs and purchase wholesale electricity at the right time so that they can pass on the low electricity prices to their customers.

In recent months alternative New Hampshire electricity suppliers have been able to offer NH Eversource customers substantial savings on their electric bills by taking advantage of buying opportunities in the wholesale energy markets. In order to market services to customers, alternative New Hampshire electricity suppliers need to be licensed by the New Hampshire Public Utilities Commission. If a New Hampshire Eversource customers chooses to purchase power from a company who is offering a rate that is lower than the utility default rate, then the customer will experience the difference in savings on their monthly Eversource electric bill.

Small businesses in central Pennsylvania serviced by PP&L who are still on the utility default “price to compare” rate have an opportunity to reduce their electric bill through the Pennsylvania electricity choice program. Electricity choice allows consumers to shop the market and purchase their power supply from an alternative supplier who may be able to offer a price lower than the utility supply rate. As a result of a recent utility default rate increase combined with a steady low wholesale energy market, savings are available for PPL small businesses.

PPL customers have experienced a true competitive market since the beginning of 2010 when decade long low capped rates with the utilities expired. The rate expirations caused alternative suppliers to flood the market as they were able to offer competitive prices that yielded quick savings for customers on their PPL electric bills. As is the case with most new electricity markets, commercial and industrial clients were quicker to act on the benefits of the new Pennsylvania electricity market structures as opposed to the residential customer pool, who were less familiar with the new laws. However, after seven years of electricity choice in Pennsylvania, both customer and energy supplier participation has grown.

Among the seven largest electricity utilities in Pennsylvania, PPL leads in customer participation rate for both residential and business customers. As of December 2016 the utility has 56.6% of their commercial customers purchasing power from a competitive electricity supplier. The commercial customers who have shopped and entered into a contract with a supplier account for 89.3% of the commercial usage amount. The largest users have been the quickest to adopt and learn about the benefits of electricity choice. However, small businesses can experience the same savings percentage if they take advantage and shop for a lower commercial electricity price to replace the PPL price to compare rate for the commercial customer class.

Competitive suppliers are able to offer lower prices to PPL businesses when the wholesale electricity market yields prices that are lower than the default rate. While the default rate is determined through an auction process months before the time they actually go into effect, competitive suppliers can offer customers fixed rate contracts based on wholesale prices at the current level. Over the last seven years there have been times when suppliers could not offer rates lower than the utility default rate, however for the majority of the time savings have been available. When savings are available it presents an easy and stress free way for business owners to lower one of their largest operating costs.

Competitive suppliers offer different fixed electric prices to customers based on their power consumption. Below customers can choose the amount of their monthly electric bill to see different fixed electric prices available.

Massachusetts residential electricity customers who receive their electric bill from National Grid and have not switched off of the default basic service rate will see an increase on their electric bills in December and the first half of 2017. The basic service rate charge represents the component of the National Grid electric bill that encompasses electricity generation supply and transmission costs. In November the rate catapulted to a 21% increase from what it had previously been since May, taking the price to $0.09787 per KWh. The increase can be avoided if customers switch off of the basic service rate and onto a competitive rate plan through Massachusetts electricity choice.

Electricity choice in the state has largely been a success with consumers currently having dozens of rate options to choose. As of October 2016, roughly 40% of National Grid’s 1,016,242 residential customers were purchasing their power from a competitive supplier. Customers who are participating in electricity choice by shopping for their power supplier will not be effected by the recent basic service rate change. The remaining 613,351 customers who remain on the default plan can simply lower their National Grid electric bills by finding a lower electricity rate plan.

Over the last three years the basic service rate has experienced wide fluctuations. Besides near term savings, competitive electricity rate plans that are fixed also provide price stability for consumers who are looking to better manage their home expenses. Many National Grid customers will not be prepared for the 21% rate increase that they will see for the first time on their December 2016 electric bills. Locking in a low rate will not only save money over the next few months, but it also can provide even greater savings in the second half of next year. The new basic service rate of $0.09787 is scheduled to stay in affect through the end of April. As of now it is unknown what the rate will be for the rest of 2017, though recent energy market trends reveal that it is unlikely they will come back down below nine cents.

Below is a list of some of the best electricity rate offers for National Grid customers in Massachusetts. All offers are updated every day, and are offered by suppliers who have been licensed by the state of Massachusetts.

Substantial savings are available for Rhode Island residential electricity customers who receive their electric bill from National Grid and are still on the default price to compare rate.  Rhode Island electricity choice provides consumers the option to either pay for their power supply directly to their utility, or to purchase it from an alternative competitive supplier.  If a competitive Rhode Island electricity supplier is chosen, the rate that the supplier and customer agree to replaces the utility default price.

National Grid, the largest electric utility in Rhode Island, is currently charging $0.08179 for their default price to compare rate.  By taking the time to shop, customers can find alternative Rhode Island electricity rates that are well below the default National Grid price.  The current Rhode Island National Grid default rate will stay in effect through the end of March 2017.  Based on historical rate information, it is likely the default rate will increase in April as the Rhode Island National Grid default price has not been below $0.08 since December 2013.

Shopping for lower Rhode Island electricity rates is an easy way for consumers to lower their electricity bill without having to invest money in new equipment or undergo expensive and time consuming energy efficiency projects.  The new competitive electricity price simply replaces the National Grid default rate, with the difference producing a lower electricity bill.  Rhode Island National Grid continues to control the power lines and wires and deliver power to homes and businesses through the state through regulated distribution charges managed by the state.  While the purchase of power supply has been deregulated and open to customer choice, the delivery of that power remains regulated.  This structuring keeps the power line reliability constant while providing a dynamic market for consumers to shop and locate a rate structure that best fits demands.

Currently several competitive offers exist in Rhode Island that are below the National Grid price to compare default rate.

Jersey Central Power & Light, a First Energy Corporation company, implemented a rate change to their basic generation service (BGS) charge on October 1, 2016 that will stay in effect until the end of May next year. The BGS price is the price for electricity supply charged to all JCPL residential customers who have not switched to a competitive supplier. The rate change will effect smaller homes and apartments the most.

Throughout the summer JCPL residential customers were charged $0.094604 per KWh for the first 600 KWh that they consumed, and then $0.103862 for all KWh above 600. Starting on October 1, 2016 customers on the BGS plan will pay one flat rate of $0.102863 for all electricity consumption. This means that it will be the smaller home customers who see the biggest increase on their electric bills. For customers who use below 600 KWh a month, their JCPL electric bills will rise by 13% if they decide to stay on the BGS service rate plan.

Many competitive rate offers exist that are in the $0.09 and even $0.08 range. The discrepancy between competitive offers and the default BGS rate is providing a incentive for customers to switch to a competitive JCPL electricity supplier. Choosing to purchase power from a competitive supplier results in the new supplier’s rate to replace the JCPL BGS charge, which produces real savings on the electric bill. The New Jersey Board of Public Utilities estimates that 199,269 of JCPL’s 984,646 residential customers have switched to a competitive electricity supplier. The switch numbers have slowly but steadily risen over the last year are expected to continue to rise as more people become aware of electricity choice in the JCPL service area.

On October 1, 2016 the New Jersey Public Service Electric & Gas Company (PSEG) enacted a scheduled change to their basic generation service rate charged to residential customers. The rate change will effect roughly 1.7 million residential electricity customers in the state of New Jersey who are not purchasing their power from an alternative supplier. Basic generation service represents the costs for the power supply portion of the bill, which is also the section of the bill that PSEG customers have the option to shop around and search for a better price.

As of August 2016, the New Jersey Board of Public Utilities reported that 185,973 PSEG residential customers, 10.4% of the residential customer base, had elected to purchase their power from an alternative supplier. For these customers, the rate change that took place on October 1 will not effect their monthly electric bill. Instead these customers will pay whatever rate they purchased from the specific alternative PSEG supplier for whom they entered into a contract with.

The remaining 89.6% of PSEG residential customers who are paying the high basic generation service rate of $0.125982 for their power supply have an opportunity to lower their electricity costs by finding a more competitive offer from an alternative supplier. The new PSEG rates will stay in effect until May 31, 2017. On June 1, 2017 the rates will increase even more to $0.137684 for some consumers. With no rate relief in sight from PSEG, the time to shop for competitive PSEG residential rates is as beneficial for consumers as it ever has been. Competitive rate offers below show the amount of savings versus the current PSEG basic generation service default price.

Customers of Delmarva Power in Delaware have the ability to save a substantial amount of money on their monthly electric bills by searching for a competitive supplier. Delaware electricity choice provides consumers with the option to either pay the default standard offer service price for power supply through Delmarva or replace that price with a competitive offer. Currently, competitive suppliers are offering electricity rates that are well below the standard offer service price, resulting in an opportunity for Delaware residential customers to reduce their electricity bill in the coming months.

While Delaware has been open to electricity choice for several years, until recently it had been difficult for residents in the state to purchase their power from a competitive supplier. Few electricity suppliers were willing to go through the lengthy process of offering electricity rates in a relatively small and unproven market. Meanwhile, the neighboring state of Maryland has seen a consistent increase in both electricity supplier offers and number of customers shopping for competitive rates over the last several years. The success in Maryland has enticed some major electricity suppliers to take the leap and enter the Delaware market in recent months.

In order to entice customers to shop for the first time some suppliers are offering rates that are as much as 19% lower than the Delmarva DE standard offer service. The majority of Delmarva customers are unaware of their ability to shop for competitive power, which leaves the job of educating the market up to the suppliers. The electricity bill savings available to Delaware residential customers should help speed up the process. According to the Delaware Public Service Commission, as of the end of April 2016 only 28,198 of the 277,109 residential customers in the service area were purchasing power from a competitive supplier. While the residential switching percentage is just above 10%, the number of business customers who has switched is above 30%. Both markets are expected to see more shopping activity in the coming months and years as more competitive suppliers enter the market and provide more options for customers.

Below are current competitive prices offered in the Delmarva Delaware service area.

Alternative electricity suppliers in Pennsylvania are offering attractive offers to residential customers of Pennsylvania Power & Light (PPL) that are lower than the utility’s price to compare charges. Despite a recent price reduction in the default rate by PPL, the energy choice market is producing rate offers that can provide savings by as much as 15% to the generation supply section of the bill.

On June 1, 2016 PPL was able to drop the default price to compare rate to $0.07491 from $0.07918, which was a modest 5.4% decrease. However competitive rates offered by alternative PPL suppliers have dropped as well providing even larger savings opportunities. The PPL price to compare rates are the result of auctions that are held months prior to the rate actually taking effect. In contrast, competitive rates offered by alternative suppliers are based on current energy market conditions. If wholesale energy rate offers drop after the auction for the Price to Compare rate is complete, alternative suppliers have an easy time undercutting the default price, which gives PPL residential customers a huge incentive to shop for lower electricity prices.

When the price adjustment went into effect on June first, just under 46% of the residential customer pool were purchasing their power from an alternative PPL supplier. The shopping activity in the PPL service area has been above average compared to other competitive electricity markets in the United States and one of the highest in the state of Pennsylvania. However, even with almost half of the customers already active participants in energy choice and a recent drop in the default price, shopping activity could pickup in August as new alternative offers continue to be presented that offer strong electric bill savings.

Here is a list of current alternative PPL electricity rate offers and their comparison to the recent PPL Price to Compare rate.

Western Pennsylvania residential customers who receive their power from Duquesne Light experienced a slight rate hike in early June. The Duquesne Light residential price to compare went up from $0.0777 to $0.0807, representing a 3.9% increase. Meanwhile, competitive electricity suppliers have kept their price offers stable, resulting in large savings for customers who have decided to start shopping for lower rates. The new price to compare is expected to last through the end of the year making the summer of 2016 an idea time for new customers to shop for attractive electricity prices in Pittsburgh.

Prior to the rate change Duquesne Light reported that 31.9% of their residential customers were purchasing their power supply from a competitive supplier. Due to the Pennsylvania Electricity Competition and Choice Act, Duquesne Light customers have the ability to shop for competitive prices for the generation and transmission component of their electric bill. Duquesne Light charges regulated distribution fees for delivering power to the customer’s home or business. The power generation aspect is open to competition, however those customers who do not find a competitive rate pay the price to compare rate offered by Duquesne Light. Competitive offers are yielding savings as high as 20% versus the price to compare rate.