On June 1, generation electricity rates will increase by 33.4% for over 100,000 businesses who are serviced by the central Pennsylvania utility company PPL (Pennsylvania Power and Light).  Business customers who have not done their electric shopping and have taken the time to compare electric suppliers will see their generation supply rates increase as the state regulated default rate will increase to 13.028 cents per Kilowatt hour from the current rate of 9.766.

The default electric rate, termed price to compare by the Pennsylvania Utility Commission, was expected to have only increased to just over 11 cents.  However, due to a higher than expected last auction for the default customers, the rate was pushed up.  Authorities at the Pennsylvania Public Utility Commission along with upper management officials at PPL are urging business customers who have not done electric price comparison to get out and find a lower electric rate.

PPL does not profit from the default price to compare rate that is charged to electricity customers who have not chosen an alternative supplier.  Instead that rate is passed through PPL by competitive electric suppliers who have won auctions to supply energy to a percentage of the default rate payers.  Many people who have not participated in electricity choice have decided to do so because they want to remain a PPL customer.  The reality is that they are already buying their electric power from other companies that are not PPL.  PPL simply passes through those revenues to the winning bidders at the auctions.  Furthermore, PPL remains the regulated utility company for all of their customers.  This means that no matter what rate a customers chooses, they will still receive their power by PPL through their transmission and distribution services.

The 33.4% electric bill increase will certainly be a shock to many business customers.  Even with the old 9.766 rate business customers were able to find lower electric rates below 8 cents that resulted in savings greater than 15%.  Electricity savings will be available for commercial customers.  However it is important to carefully review any electricity rate contract that you decide to sign.  Many suppliers have been offering rates that have hidden charges.   If you are comparing electric rate offers in Pennsylvania, ask to see a rate that includes the entire price to compare component, including the GRT tax.  The 13.028 cent default rate includes energy, transmission, capacity components, and the GRT tax.  The only thing that the rate shouldn’t include are the regulated distribution charges.

Competitive PPL rates can save businesses as much as 35% against summer price to compare electric rates.  If ever a time to learn about electricity choice, now is that time for PPL businesses.

Here are some competitive electric rates and the savings compared to the high business PPL default rates:

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.

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.

Energy customers in New Jersey are given a variety of  options when in comes to their energy purchasing decisions.  New Jersey is leading the country in clean energy initiatives with the NJ Clean Energy Program which provides rebates and promotions for consumers looking to purchase energy efficient hardware.  The program also promotes the use of renewable energy sources such as solar and wind and provides financial assistance for consumers and businesses who invest in solar energy systems.

NJ Energy customers have also seen the benefits of an energy choice market where customers are able to shop for competitive electricity and natural gas rates.  Many energy consumers in New Jersey have not used NJ Energy Choice to their advantage because of an unfamiliarity to the program.  Natural gas customers who have not shopped pay a default rate with their utility which is based largely on market price.  In this sense the decision to purchase competitive natural gas is a decision of price protection and certainty; savings versus the default rates cannot be guaranteed because they change on a monthly basis.

On the contrary, utility default electric rates are set for one year at a time, and the default rates for the following year can be estimated within a tight range since a large percentage of that energy is purchased in advance for default rate paying customers.  These buying strategies present opportunities for NJ electricity customers to save money on their electric bills if they find competitive electric rates that are lower than the default rates.  Many electric suppliers in New Jersey are offering electricity prices that will save customers money.  Business customers in particular have big opportunities to save money.  Many small businesses in New Jersey have not chosen a competitive electricity supplier because they do not fully understand their electric bill.

New Jersey electricity customers, both residential and business, can use electric choice information sites to understand energy competition and electricity rate structures so that they can maximize their energy savings.

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):

Electric choice options are heating up in some markets as we begin to enter the high energy summer season.  Customers who use websites to perform electric price comparisons will give themselves access to the most options and highest electric rate savings.

In Philadelphia, electricity customers of PECO energy are experiencing electric choice for the first time and a surprising number of residential and business customers are power shopping for lower energy rates.  PECO energy default rates are going to rise in the summer which has prompted people to explore electric rate options quicker than some had expected.  Because PECO default rates change on a quarterly  basis initial savings have not been huge, but people are starting to see that locking in a low electric rate can be beneficial as it protects you from future increases.  The other side of that argument is that default rates can go down causing you to be stuck paying a higher electric rate with another electric supplier.  While this a possibility, historic energy prices have shown that rates tend to go up in the summer.  Unfortunately, it will probably take a large energy spike for some people to start looking into their electricity choice options

In Texas, which has enjoyed a competitive electricity market since 2002, thousands of customers who had not previously power shopped saw their electric rates triple in the summer of 2008 due to rising natural gas prices.  Electric customers who had previously locked in low rates were not effected by the increases.  Today the majority of Texas electricity customers are in some type of electric supply contract.

New Jersey electricity customers are also getting low electric rate offers that can protect them from summer rate increases.  Performing an energy comparison of all the offers will allow electricity customers to get the lowest offers with the best promotional offers.  Promotional offers as high as a $75 gift card are available in New Jersey.

Small businesses serviced by the utility PPL in central Pennsylvania will see their electric rates increase by 33% on June 1, 2011.  The current default electric rate of 9.766 will increase to 13.028.

Business customers who have participated in the PA electric choice program will not be effected by the electric rate increase.  The higher price is for the price to compare, or the default electric rate given to consumers who have not yet chosen a competitive electric supplier.  Cheap business electric rates are available for PPL customers who have not yet shopped for competitive electricity rates.

PPL Competitive Commercial Electricity Rates

The higher energy prices in the summer are expected to increase electricity shopping in the PPL region.  As of April 1, 56% of small businesses serviced by PPL had not switched suppliers and instead remained on the PPL price to compare electric default rate.  With current saving of 10% and more in the competitive electric market, the increased default rate will present and even bigger energy savings opportunity for businesses who won’t be able to afford to allocate more money on their electric bills.

Electric choice is still a new concept to many consumers.  Many business owners do not fully understand the benefits of choice and would rather stay with PPL, a company who they are familiar with.  The important fact that these commercial energy customers are missing is that PPL, as the local utility, continues to deliver the power to their customers regardless of the electric supplier chosen.  This distinction between electricity supplier and electricity utility (delivery company) has caused confusion to many customers in energy deregulated markets.

Delaware has a deregulated electricity market.  What does this mean?  It means that the local incumbent utility Delmarva, which was once a regulated monopoly controlling all aspects of electricity service – generation, transmission, distribution – is now only in charge of distribution (they are just an electricity delivery company).  The state mandates that they offer all of their customers a generation default rate for those customers who do not choose an alternative supplier.

Even though Delmarva offers a default generation rate, they do not profit off of these charges.  Their only profit is derived from the delivery charges that are still regulated by the state.  Because of this fact, Delmarva not only does not care if their customers choose a competitive electric supplier, but actually support it.  They want all of their customer to purchase their generation electric service from alternative suppliers so that they can focus their attention on the management and reliability of the electric lines and wires in the state.

Customers looking to shop for competitive electric rates can use the Delmarva default rates (Price to Compare) to determine if the offers they receive are worth signing a contract.  Current competitive electricity rates are showing good savings (8-20%) versus the default rates over the last several years.

Delmarva default rates change about every 4 months.  It is important for Delmarva customers to realize that signing a fixed electricity  contract is not only about saving money off of the current default rate, but also about price protection into the future.  It is possible that the future default rates can become lower than the fixed rate that you signed.  However it is possible, and more likely, that they can drastically increase.  Fixed rate contracts are designed to offer customers with budget certainty giving them electric rate protection.

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: