alternative suppliers

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.



PECO Energy increased their rates for generation and transmission service on September 1, 2015. The company had been charging their customers $0.082 from May 1st through the end of August, but when the calendar turned to September the rate went up to $0.0849 which is a 3.5% increase. Though small, the increase comes at a time when people are trying to reduce their monthly expenses due to a struggling economy and rising costs.

Alternatives due exist for PECO Energy customers due to the fact that Pennsylvania is an energy choice state, which allows them to shop for competitive electricity suppliers. In Pennsylvania alternative electricity suppliers can offer service to customers for their generation and transmission costs, which is the component of the PECO electric bill that recently increased. Generation and transmission costs make up the official PECO Price to Compare rate, the price that PECO charges to their customers for electricity generation supply who do not buy their power from an alternative supplier. Currently several alternative PECO electricity suppliers are offering electric rates that are lower than the price to compare; a scenario that will result in lower electric bills for a customer who decides to switch suppliers.

As of August 2015, 33% of PECO residential customers have elected to purchase their power from an alternative supplier. The remaining two-thirds continue to purchase their power supply from PECO Energy at the higher price to compare rate. The competitive electricity market provides an easy way for customers to save money. Customers who do not shop for lower rates are paying more for their electricity than what is needed. As a utility company, PECO Energy is in charge of delivering power to all of their customers at regulated distribution charges, regardless of who the customer chooses to supply their power. PECO Energy is also responsible for charging default rate payers the price to compare for their power supply, however they do not profit from this side of the business. Instead they collect that money and transfer it over to electricity suppliers who won previously held auctions to provide power to the default rate paying class.

PECO Energy customers who are still paying the default price to compare rate can save money by shopping for alternative electricity suppliers below. All supplier and their rate offers have been approved by the Pennsylvania Public Utility Commission.



Electricity prices for Chicago customers serviced by ComEd are becoming more competitive as alternative suppliers position themselves for market share in the country’s third most populated city.

Now that Illinois has a full functioning energy choice market, electricity customers living in Chicago are becoming more aware of their options and terms such as their “Price to Compare”. The Price to Compare represents the rate that customers who do no shop for lower competitive energy prices pay for electric supply and transmission.

Starting in October 2011 and going through May 2012, the Price to Compare for ComEd electricity customers will be 7.733 cents per KWh (6.968 Electric Supply + 0.765 Transmission). If you switch electric suppliers, the electric rate that you choose will replace the price to compare rate of 7.733 on the ComEd electric bill. ComEd continues to send the monthly electric bill to their customers as well as control the meter readings and charge for distribution service. The distribution rates remain regulated by the Illinois Commerce Commission.

In order for a competitive electric supplier to offer service they must first be licensed by the Illinois Commerce Commission. Here are some active competitive electric suppliers offering service to ComEd customers with rates below the Price to Compare:



PSEG electricity customers can save money on the supply portion of their electric bill by buying their power from an alternative supplier.  PSEG default electric rates, labeled Basic Generation Service (BGS) by the state of New Jersey, are currently higher than some competitive offers.

The delivery portion of the bill remains regulated and serviced by PSE&G.  Some electric companies offer dual billing in which you receive one bill from PSEG Energy for the delivery portion, and a separate bill for the supply charges from the alternative electricity company.

The more popular choice is to receive single, or consolidated, billing where you get one bill per month from PSEG.  On the PSEG electric bill the delivery charges would remain the same, and the supply charges would be that of the alternative electric supplier who you sign a contract with.

PSE&G posts the total “Price to Compare” at the bottom of the electric bill even after a customer has chosen an alternative electric supplier to provide electricity.  By doing this, a customer can see how much money they are actually saving every month.

PSEG electricity customers on default service will pay $0.11481 per KWh from now until the end of May 2011.  They will then pay about $0.1200 (depending on their total usage) in the summer months of June through September.

PSEG customers can save money by choosing: