PECO Default Rates in 2011

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: