PECO electricity customers will see an increase on their electric bills on June 1, followed by another increase on July 1.  Households who receive their electric bills from PECO, an electric utility company who serves most of Philadelphia and the surrounding areas, will be raising their electric rates for customer who are paying the default price to compare rate.

The PECO energy area transitioned to full electric choice at the beginning of the year (2011).  PECO still manages the maintenance of the lines and wires and continues to send their customers the monthly electric bill.  However, PECO is no longer in charge of providing low electric supply rates to their customers.  They only charge regulated fees for the delivery of the power.  They have also been given the responsibility by the state to provide customers who have tno shopped for electricity rates a default supply rate.

These default supply rates will be rising in the summer, however customers can protect themselves from these increases and save money compared to what they are currently paying by selecting a lower electric rate.  The great thing about electric choice in Pennsylvania is that even after a customer chooses a low electric rate, they continue to receive their monthly electric bill from their local utility company (PECO, PPL, Duquesne Light).    Pennsylvania residential electric rates options are available for customers looking to save money and enact their power of electric choice and competition.

Currently customers pay 9.99 cents for electric supply.  On June 1, customers who use more than 500 KWh, which is nearly everyone who lives in a home larger than one bedroom, will see their rates increase by 12% for all consumption above 500 KWh.  On July 1, another increase of about 3-4% on top of the June 1 increase will occur for every KWh consumed by residential customers.

Below are some current competitive offers, all of which are below the current 9.99 cents.  You will save between 10-18% versus the high summer PECO default rates by choosing one of the low electric rates below.  We recommend signing a fixed rate because savings will be guaranteed, as opposed to a variable rate where the rate can change in any given month.

New energy choice markets in the northeast (Pennsylvania, New Jersey, Maryland, Connecticut) as well as existing deregulated areas such as Texas and Illnois are making some business electricity companies household names as the battle for market share has heated up.

Electricity companies who offer electric service to commercial and industrial clients buy power commitments in advance for the businesses and then sell it back to them in the form of a monthly electric bill.  Essentially these business electricity companies act as banks for large energy users.  As retail electric suppliers, they buy blocks of power on the wholesale market and then sell it to the customer with a retail markup.  This is why electricity companies require businesses to sign electricity contracts that locks them into service with the supplier for the term of the contract.

However, some of these business electricity contracts can be confusing and misleading to executives who are looking at purchasing energy for the first time.  Some of the misleading practices include “passing through” part of the charge to other sections of the bill,  thus making the rate appear lower than it really is.  Also, electricity companies can add unnecessary meter charges that can add up for businesses that have multiple meters.

It is important for businesses to do their due diligence or work with a energy consulting company who has a clear expertise in the field of deregulated electricity.  Electricity brokering companies can compare electricity contracts, rates, and suppliers.

Businesses should be weary of electricity companies offering variable rates that are contract free.  Usually the offer will not guarantee any type of rate allowing the electricity supplier to charge whatever they want in any given month.

Customers of the Pennsylvania electric utility PECO energy will want to shop and compare electric rates very soon in order to prevent a large energy bill spike this summer.  With gas prices already on the rise and  expected to continue to increase, it is imperative to the personal finance of these energy customers to find lower electricity prices.

For a electricity consumer who uses 1000 KWh a month, the supply portion of the PECO electric bill will increase by more than 10% going from 9.99 cents to over 11 cents starting on July first.  Customers who use more than 1000 KWh will have even higher rates.  PA electric choice is providing savings opportunities for customers, but finding those deals has proved to be difficult for many consumers.

Fortunately, electricity price comparison web sites like www.electricrate.com give PECO energy customers a variety of energy choices with savings and promotions easily identifiable.

Finding a lower electric rate will not take you away from being a PECO energy customer.  PECO energy will continue to serve as your local utility delivering the power to your home or business.  With the Electric Choice Act in effect, PECO no longer is involved in the business of offering competitive generation rates.  They instead only focus on the reliability and maintenance of the power lines and wires.  They are however, mandated by the Public Utility Commission to offer default rates to customers who do not shop for competitive rates.

Electricrate.com provides an easy platform for customers to do energy shopping and compare electric rates being offered to the PECO price to compare default rate.  Current savings of 10-16% are available versus the summer PECO default rates.

Electric bill savings can also be found for Pennsylvania electricity customers who are serviced by the utilities PPL Energy in central Pennsylvania and Duquesne Light in the Pittsburgh area.  As is the case with PECO energy, these energy consumers will remain customers of their respective utility companies no matter which electric supplier they choose.  It is simply about saving money on the electric bill; if you can find a lower rate compared to the default rate then you should switch.

Even after a customer chooses a lower electric rate, they will continue to get their monthly electric bill from their local electricity utility company (PECO, PPL, Duquesne Light).

Electricity rate savings are also available for small businesses throughout the state.  Small business customers of PPL in particular have huge savings potential.  Businesses who have not switched suppliers, and thus are still on the PPL default service, will see their electric bills increase by 15% on June 1 if they do not take action.  If they do shop, they can find savings of about 15% off of current default rates.  If nothing is done the business electric rate will be above 11 cents.  If they shop and compare rates, then they will find competitive electric rates below 8.7 cents.

Electricity customers who are serviced by the utility PSEG are finding savings on their electric bills by shopping for lower electric rates.  Electric shopping in New Jersey is picking up as PSEG and JCPL get ready to set their summer rate increases.

Customers who have not shopped and compared electricity prices are paying high default rates.  The default electricity rates in NJ are set for one year at a time starting on June 1 and ending on May 31.  The summer months (June through September) have a different set of energy rates than the non-summer months (October through May).  While electricity savings are currently available for customers who compare energy prices, the savings are expected to be even greater once the summer default rates take effect on June 1.

In addition to lowering your electric bill, many of the competitive energy suppliers offer promotions such as gift cards and cash back bonuses.  Below are electric rate offers that also have promotional offers.

Electricity choice is certainly becoming a reality in New Jersey.  Customers of PSEG, JCPL, and Atlantic City Electric are seeing more and more electricity options.  One year ago their were less than a handful of options for NJ residential electric customers, now there are about a dozen electricity companies offering electric supply service with more filing the paperwork to enter the market.  True electric competition is taking place in New Jersey.

Compare Competitive PSEG Rates (updated daily):

PSE&G electricity customers looking to save money on their electric bills can do so by shopping for competitive rates.  Paying the PSE&G bill is becoming more difficult for many PSEG customers as energy costs have risen in 2011.  Further increases are expected to occur in the summer, starting on June 1.

Electric choice in New Jersey is bringing savings opportunities to PSEG electricity customers.  The PSE&G electric bill is divided into two sections.  The first section, the delivery section, includes regulated rates that PSEG charges their customers for power delivery.  These charges remain the same no matter which electricity supplier customers choose.  The second part is the Supply section, which makes up the majority of the electric bill.

The supply part of the PSEG electric bill includes all of the electric generation charges which have been deregulated, and therefor customers have a choice of which electricity company they want to use.  When PSEG customers sign an electricity contract with an alternative electricity company, the rate they sign for will replace all of the charges in the supply section of the PSE&G bill.

Compare Electricity Rates

Lowest Competitive PSEG Rates (updated daily)

Though residential electric rates lowered in 2011 for PPL electric customers, the lowest electricity rates in the PPL territory are being offered by competitive electric companies.  The PPL area contains about 1.2 million residential electricity customers in central Pennsylvania.  The majority of these customers are paying the default rate for their electric generation service known as the price to compare.

Customers paying the PPL default rate can find better electricity prices by shopping for competitive rates.  Those consumers who have taken the time to learn about electricity choice have realized that it makes sense as the end result is a lower electric bill.

Despite the price to compare rate coming down from 10.44 in 2010 to 9.27 in 2011, PPL customers can save an additional 9% if they lock in a fixed electricity rate by going here.  Even after choosing another electricity supplier, customers continue to receive their electricity bill from PPL.  PP&L is a local utility company.  Even though Pennsylvania has deregulated the electricity market, PPL continues to serve at the electric delivery company for all of their customers, as well as continues to send the monthly electric bill to all of their customers, even the ones who have switched suppliers.

Current Competitive Residential PPL Rates:

New Jersey power consumers are finding savings through the state’s electricity choice program.  Electric choice in New Jersey has brought in more than a dozen electric suppliers offering electricity rates to commercial and industrial customers over the last several years.  Now electricity suppliers are starting to offer residential rates in New Jersey.

NJ power shoppers who take the time to compare electricity offers are finding the best deals.  In addition to low electric rates that offer significant savings versus utility default rates, some electric suppliers are offering incentives and promotions to entice customers to switch.  Despite electric bill savings of over 20% in some cases, less than 8% of New Jersey residential electric customers have switched suppliers.

Those who have not switched continue to pay a high default rate with their local electric utility company – PSEG, JCPL, ACE, Rockland.  PSEG and JCPL have been pushing power shopping and choice to their customers to help spread the word.  Though New Jerseyans now have a choice of who supplies their electricity, the power continues to be delivered by the local utility companies.  PSEG, JCPL, Atlantic City Electric, and Rockland Electric do not lose the customer when they switch electric suppliers.  Instead, the utility company continues to bill the customer and charge regulated rates for power delivery.  The only thing that changes is that instead of paying the high default supply rate, the customer pays a competitive supply rate.  If that competitive rate is lower than the default rate, than the customer saves money on their electric bill.

Here are some current low power rates in New Jersey:
PSEG Rates

JCPL Rates

Atlantic City Electric Rates

While most of the marketing efforts of competitive electricity suppliers have been focused on the territories controlled by PECO Energy and PPL Energy, customers of Duquesne Light are finding the largest savings against their utility price to compare default rates.

Duquesne Light customers, who currently have a supply default rate of 8.89 cents, can currently lock in a 24 month rate as low as 7.19 cents which will yield a savings of 19% on the electric bill.  While customers new to electricity choice might be hesitant to lock in a rate for two years, it is important for them to understand the benefits of long term fixed electric contracts.  The fixed electric contract will save customers money right away and protect them from potential default rate increases in the summer and in 2012.  Electricity customers can also lock in for a shorter term at 12 months at a low rate of 7.55 cents resulting in a healthy 15% electric bill savings.

PECO electricity savings and promotions are expanding in the Philadelphia area as suppliers compete for market share.  The PECO territory saw electric price caps expire on January 1 which has opened the door for alternative electric suppliers to offer rates to PECO default rate payers.

Duquesne Light saw their rate caps expire several years ago.  However electric suppliers were slow to enter the market due to the low default price to compare rates that the utility was offering their customers as a result of an auction they held among wholesale energy suppliers.  Now that those default rates are higher than what retail electric suppliers can offer, electricity companies have started to offer service to customers as they can now offer lower electric rates and electric bill savings.  Customers who switch electric suppliers will still receive their monthly electric bill from Duquesne Light.  The only difference will be the lower electricity rate on the bill.

Current Duquesne Light competitive offers:

Residential customers of Rockland Electric in New Jersey can reduce the supply charges on their electric bill by 20% by going here.

Many customers of Rockland Electric, the smallest electricity utility in New Jersey, are unaware of electric choice in the state.  Due to its relatively low number of customers, very few electricity companies are offering competitive rates in the Rockland area.  However, due to recent market changes, the electric suppliers who have entered the market are able to offer low electric rates with that offer significant savings against Rockland Electric default rates.

Rockland Electric is a regulated electricity delivery company who serves customers in northern New Jersey.  They are required by the New Jersey Board of Public Utilities to offer a default generation rate for their customers.  Rockland Electric would prefer that all of their customers choose an alternative generation supplier so that they can focus on the management and reliability of the power lines and wires.

The cheapest electric rate that we were able to find for Rockland Electric customers is 9.7 cents versus the 12.15 default rate, a 20% savings.  The offer also includes a gift card up to a value of $75.

PSE&G electricity customers in New Jersey paying basic generation service rates, the PSE&G default rate, are paying among the highest electric rates in the country.  The basic generation service rates are supply electricity rates that PSE&G charges customers who have not selected and alternative electric generation supplier.  These default rates are based on a series of auctions that PSEG holds for their customers.  Electricity suppliers compete to provide rates for a percentage of the PSEG default customers.

PSE&G passes the supply rates from the electricity companies who win at the auction directly on to customers.  So even when a customer pays the basic generation service default rate, they are still paying money for their supply service to another electric supplier other than PSE&G.

Lower electric rates can be selected by customers who take the time to shop and find their own electricity supplier.  When the auction for default rates takes place electricity suppliers have to take into account that a certain percentage of customers will leave the basic generation service during the year.  For example, if an electric company wins the right to provide default service for 100,000 customers starting in June, they have to put a premium on the price taking into account that there is a probability that 15% of these customers might sign a contract with an alternative electricity supplier who is offering a lower electric rate.

When electricity suppliers market their service and rates to individual customers, they do not have to include a premium since they are pricing for one entity.  This results in lower rates and savings on the PSE&G electric bill.

Here are some current offers and savings for electricity customers in PSE&G: