PECO Energy

Peco energy customers are preparing for electricity choice. On January 1, 2011 capped electric rates for all Peco electricity customers (residential, commercial, and industrial) will expire and a true competitive electric market will take shape.

The restructuring is the result of Pennsylvania’s Electric Choice Act of 1996, which forced traditional utilities to divest their power plants and become merely regulated distributors of electricity over their wires. Peco customers have seen their rates stay at constant rates since 1998. When those rates expire at the start of the new year, some customers will see there electric rates on their utility bills increase. To offset the increases and even save more than current prices, Peco customers are encouraged to shop for lower electric rates.

Peco energy makes money from a regulated distribution fee, not from generating the power itself. They are mandated by the state to provide default electric rates for those electricity customers who are slow to shop the competitive market.

One of the biggest misunderstandings is that Peco will be upset with their customers if they choose a lower cost electric supplier. This is a false belief. Peco energy is not in the business of providing electric generation rates and are unable to do so based on the Pennsylvania’s Electric Choice Act of 1996. Peco Energy is actually encouraging their customers to shop for lower electric rates.