Electricity Savings in MetEd

Pennsylvania electricity customers serviced by Metropolitan Edison (Met-Ed) are seeing competitive electric rate offers for the first time. Met-Ed default prices were capped until January 1, 2011 which had previously kept energy companies away. Now that the default price caps have been lifted competitive suppliers are able to offer low electric rates for consumers.

Electric shopping has been a success in other parts of Pennsylvania. The Pennsylvania utility companies PECO Energy, Pennsylvania Power & Light, and Duquesne Light have seen increased competition and shopping activity among their customers. Similar results are expected for the Met-Ed territory.

Met-Ed will continue to serve as the electric delivery company for their customers even if a switch for lower generation prices is made. Electric choice in Pennsylvania is about choosing your generation electric supplier, the utility company remains the same and remains regulated by the Pennsylvania Public Utility Commission.


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Illinois Power Companies

The shape of power companies in Illinois has changed as the state’s energy choice laws have begun. Illinois consumers, prior to electric choice, were forced to buy their power supply from monopolies who were regulated by the Illinois Commerce Commission. Illinois electric choice has allowed new power companies to enter the market, however the old regulated power companies still serve a very important role.

The incumbent power companies of Illinois, Commonwealth Edison and Ameren, were once responsible for all phases of the energy business for their given territories. This included purchasing power from generation facilities and then delivering that power to homes and businesses throughout Illinois.

Illinois electric choice has taken the power purchase responsibility away from ComEd and Ameren so that they can focus on delivering the power to properties, as well as responding to power failures and emergencies. Choice allows customers to purchase power from a variety of power companies, some of which might focus on providing electricity at the cheapest rate, while some might market themselves as clean power companies who sell green energy.

As the energy choice landscape in Illinois continues to mature, consumers can expect to see more power companies marketing their service. Aleady several licensed power companies are offering electricity rates to customers of ComEd at steep discounts compared to the ComEd default rates. If you can lock in a fixed rate that is lower than the default price to compare, than you will save money on your monthly electric bill. Below are some low rate options in ComEd.


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CT Energy Savings

Connecticut consumers continue to benefit from the state’s decision to deregulate their electricity market several years ago. Electric choice in Connecticut is providing energy customers with lower prices and more options when buying their electricity.

Almost everyone in Connecticut is serviced by either Connecticut Light & Power (CL&P) or the United Illuminating Company. Prior to CT Energy Choice these two utilities were regulated monopolies of electricity generation, transmission and distribution. The decision to create an energy choice market changed the role of CL&P and United Illuminating Company for their customers. Now they are only responsible for the transmission and distribution of electricity and are no longer in the business of offering generation rates to customers. Consumers can shop for competitive generation electric rates to find the offer that best fits their needs.


Consumers who do not shop for lower electricity prices pay a default rate that is charged by their utility company and regulated by the state. The default charge is determined by a series of auctions that the state holds for competitive energy companies who bid to serve a certain percentage of default paying consumers. While the money for default generation rates are collected by the utilities (CL&P and United Illuminating), the revenues for these charges are passed through to the energy companies who have won the previously held auction. Electricity choice is about customers getting the best deal that they can find, and not settling for a default rate.


While Connecticut has been a very successful energy choice state, the majority of customers are still paying high default electric rates. Less than 40% of CL&P residential customers and only 45% of United Illuminating residential customers have chosen to purchase energy from alternative suppliers. Currently CL&P default paying customers can save 10% on their monthly electric bill by choosing a low cost electric supplier. United Illuminating consumers can save as much as 20% versus their default generation prices.

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Alternative Power Companies in Pennsylvania

While electricity shopping has increased throughout the year in Pennsylvania, an abundance of confusion remains on the finer points of Pennsylvania’s deregulated electricity choice market.

One of the biggest subjects of confusion is the new role of the incumbent utility companies – PECO Energy, Pennsylvania Power and Light, Met-Ed, Duquesne Light, and more.

Prior to the decision to make Pennsylvania an energy choice state, the utility companies were regulated by the Pennsylvania Public Utility Commissison to serve all functions of electricity for Pennsylvania consumers; they were in charge of electricity generation, delivery, and the maintenance of the power lines and wires.

Today, after PA electric choice has been implemented, these companies are still regulated by the PUC to deliver power and control the maintenance of the power lines and wires. Their revenue streams are derived from the distribution charges found on your electric bill. The distribution charges remain regulated by the state and are the same no matter which electric supplier you choose.

The other parts of the electric bill (generation and transmission) have been opened up for competition allowing alternative power companies in PA to compete for customer enrollments. Customers who do not choose an alternative power company pay a default rate with their incumbent utility company. The utility company does not profit from the default rates and instead passes these charges on to other power companies who have won previously held auctions for the right to service default paying customers.

This brings up one of the most intriguing aspects of electricity choice in Pennsylvania; even if you haven’t selected an alternative power company, your money is already going to one through the default rates you pay. So if you can find a lower rate from an alternative power company on your own, there is no reason not to enroll with that company.

Enter your zip code to compare alternative power company prices in your area:



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Atlantic City Electric Bill Pay

Default supply electric rates increased on October 1, 2011 by 18% for residential customers of Atlantic City Electric. The price increase has spurred an increase in electric switch activity in the southern part of New Jersey where Atlantic City Electric is the regulated utility company. While they remain the regulated monopoly for electricity delivery, customers do have a choice of who they buy their power supply from, and currently competitive rates are far lower than the ACE default rates.

The default rate includes all aspects of the electricity generation supply on the electric bill. Switching electric suppliers results in the selected rate replacing the default rate on the bill which is called the basic generation service (BGS) charges.

Atlantic City Electric customers still paying default service with the utility can control the increase by shopping for competitive electricity rates. The New Jersey Electricity Competition and Choice Act gives Atlantic City Electric customers the option to switch electric supply companies. We recommend choosing a fixed electric rate so that you do not have to worry about your rate increasing dramatically, which often occurs with variable rate options.


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ComEd Chicago Prices

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:


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Allentown Energy Rates

Businesses and households in Allentown Pennsylvania have several electricity companies to choose from now that the state of Pennsylvania has been deregulated. Energy choice has given electricity consumers dozens of rate options to choose from, many of which are lower than the local utility default rates.

While citizens of Allentown have choices of who to buy the electricity generation from, they are all forced to receive that power through the electrical grid operated and managed by Pennsylvania Power and Light (PP&L). PP&L remains a regulated electricity delivery company who also continue to provide Allentown energy customers with their monthly electric bill. PP&L also provides default generation rates for those customers who do not choose an alternative energy supplier.

Pennsylvania Power and Light does not profit from the generation default rate that they charge customers who are slow to adopt to electric choice. Revenues from default service is transferred through PP&L to competitive electricity companies who have been granted the right to served default paying customers through a bid process. This contradicts one of the biggest reasons customers cite for not switching electric suppliers – customer loyalty to PP&L. The Pennsylvania electric choice law prohibits the PP&L utility from offering competitive electricity rates in their utility service area. Another company that falls under the PPL Corporation umbrella, PPL Energy Plus, offers competitive rates in the area. However, customers should understand that PPL Energy Plus is a different company than the PP&L they are used to getting their bill from.

While current PP&L residential default rates are low, competitive electricity rates have been found that are even lower. Commercial default rates in the PP&L area have been extremely high with savings as much as 30% available for businesses who shop for competitive electricity.

Here are current low electricity prices for PP&L residential customers in Allentown (updated daily):


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Shop for Electricity in Elizabeth NJ

The ability to shop for electricity is proving consumers with multiple energy supplier options in Elizabeth, NJ. Taking the time to find competitive electric rates can result in huge savings on the PSEG electric bill.

The most efficient and time saving method to compare electric rate prices is to use an electricity rate comparison website. This allows consumers to instantly compare offers for the lowest rate, term length, and savings amount versus the utility default rate. For some customers shopping for electricity means finding the lowest electricity rate. However, the consumer should also consider how long the rate will be locked in for and how much, if any, the termination fee is.

Often the lowest rate offered will be for longer terms of 18 or 24 months. Locking in the lowest rate for two years might be the best thing for a home owner who is not planning on moving anytime soon. However, for a college student who has just moved into an apartment with a 10-month lease, the better option might be to choose an electricity company offering a low variable rate, or lock in a fixed rate for 6 months which will then change to a variable rate when the six months are up.

Power customers can also shop for renewable electricity offers where the electricity is generated from wind power farms. These electric rate prices might be higher than the lowest electric rate available, however some shoppers are willing to pay the extra charge for the ability to buy green power.

Energy choice in New Jersey has provided customers living in Elizabeth the ability to shop for all of these electricity options and more. The majority of Elizabeth electricity customers have PSEG as their utility company. Even after a competitive energy company is chosen, PSEG will continue to send your monthly electric bill, maintain the lines and wires, and charge you the distribution expenses found on your bill under the “Delivery” section. The delivery prices remain regulated by the New Jersey Board of Public Utilities and are the same no matter which electric company is chosen to provide you with your competitive supply rates.

Here is a list of current competitive electricity prices for Elizabeth customers who have PSEG as their utility (updated daily):


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Low Electric Rates in Chicago

Chicago electricity customers who are serviced by the electric utility company ComEd are finding low electric rates through the Illinois electric choice laws. For the first time Chicago residential consumers have the power to shop and compare electricity rates and companies. The results have been positive as consumers are finding savings on their electric bills between 10-20% versus the default ComEd electricity rates.

Customers who have not shopped for competitive power pay a default rate for their electricity supply on the ComEd bill. However, this default rate is passed through ComEd to other electricity companies who have won previously held auctions for the right to provide electricity generation service to default paying customers in Chicago and the rest of the ComEd territory. For this reason ComEd actually encourages their customers to shop and find lower electric rates. ComEd’s profits are derived from the delivery (distribution) charges found on the ComEd electric bill. The delivery charges remain regulated by the state of Illinois; no matter who you choose to supply your electricity generation, the delivery charges will remain the same.

Illinois electric choice is about giving the customer lower electric prices and more options including green energy, fixed pricing, and long term price protection contracts. It also requires electricity companies to give the best possible customer service as they compete for market share.

Chicago electricity customers who shop and choose alternative energy companies will continue to receive their monthly bill from ComEd. They will also still continue to call ComEd for power failures and emergencies. Electric choice in Illinois is no the end of ComEd, it has only changed the role they play in the Illinois electricity market. Whereas before they controlled all aspects of the electricity business, now they are only in the business of delivering electricity to their 3.6 million customers. If you are a ComEd customer today you will continue to be a ComEd customer even after you choose who supplier your electric generation service.

Here are some current competitive electric rate prices in the ComEd territory (updated daily):


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Low Electric Rates in JCPL

Residential customers who receive their monthly electric bill from JCPL can find savings above 10% by taking the time to shop and compare electricity rates in the competitive NJ energy market. The New Jersey Electric Choice and Competition act is providing power options for both residential and commercial customers. There are variety of options in the New Jersey competitive market. Customers can choose to lock in a fixed rate for savings and price certainty, or they can choose a variable rate with the option to switch suppliers at any time. Green power options are also being offered because of the NJ Electric Choice act.

Having the power to shop power companies is still a new idea to most electricity customers in New Jersey. Less than 8% of JCPL residential customers have switched electric suppliers despite competitive rates that are more than 10% lower than JCPL residential default rates. New Jersey is hoping that their electricity market matures like the Texas market did over the last decade. In Texas, Houston energy customers can choose between over twenty electric companies and over 50 electric rate offers.

The default rates offered by JCPL are generation supply rates that JCPL charges to customers who have not participated in energy choice. These rates are determined by a series of auctions that begin three years prior to the current current year. In other words, default rates being offered in 2011 are determined by auctions that occurred in 2008, 2009, and 2010. Switching electric companies does not end the customer relationship with JCPL. JCPL remains the electricity delivery company for all of their customers regardless of which competitive electricity generation supply company is chosen.


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