PECO Power Rates Increasing in Fall 2013

PECO Energy has announced that their default supply electricity rates will increase on September 1, 2013. The increase will be about a full penny per kilowatt hour higher than the rate that was charged during the summer, resulting in a $10 per month increase for a home that uses 1,000 KWh in a month.

The power rate increase will only occur for those PECO Energy customers who have not shopped for competitive electricity. To date only 31% of PECO residential customers are buying their electricity from a alternative energy supplier, meaning that the rate increase will take place for 69% of customers in southeastern Pennsylvania. The rate increase has presented a savings opportunity for these default paying customers. The increased PECO rates combined with lower competitive electric rates gives customers the chance to save money on their electric bill if they are willing to spend a few minutes shopping for competitive power rates.

Many customers have chosen to lock into long term fixed rate electricity agreements with energy companies that will not only protect themselves from the rate increase that will take effect in September, but also protect them from future potential rate increases. Many energy analysts are forecasting energy prices to increase from now throughout 2014 making now an idea time to lock in low fixed electric rates.


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CL&P Electricity Rates Fall in 2013

The price for electricity generation supply will be less in 2013 for Connecticut Light & Power customers than it was in 2012. The electricity rate, which was above 8 cents for the entire 2012 calendar year, dropped to 7.615 cents on January 1, 2013 and will remain at that price for the entire calendar year in 2013.

The CL&P generation rate is the default electricity rate that consumers pay who have not shopped for competitive power rates. As an energy choice state, Connecticut consumers have the ability to shop and compare electric rates from multiple competitive electricity companies. Those consumer who choose not to shop pay a default rate with their local utility. In Connecticut the two major utilities are CL&P and The United Illuminating Power Company.

While the default CL&P rates have dropped, consumers can save even more by taking the time to shop for lower competitive electric rates. Below are offers from qualified competitive electric suppliers licensed by the state of Connecticut. All electricity rate offers are updated daily.


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BGE Rate Increase Announcement Spurs Power Shopping

Energy choice has been alive in the state of Maryland for almost a decade, but it is only now beginning to sustain a healthy heartbeat. Increased customer awareness concerning competitive power is largely centered around the recent BG&E rate hike announcement. Maryland electricity choice provides a way for BG&E consumers to avoid the rate hike.

Baltimore Gas & Electric (BG&E) recently increased their electricity supply default rate and stated that their rates will shoot up another 17% on June 1, 2013 just in time for the high electricity usage summer season. This has caused BG&E default paying customers to start shopping the market for more competitive electric rates. BG&E is the largest electric utility in Maryland and is responsible for providing default service for all Baltimore electricity users.

Default customers are those consumers who have not taken the time to compare electric rates in the competitive market. These customers pay the BG&E price to compare rate, a price that is regulated by the Maryland Public Service Commission and the benchmark for competitive energy companies to offer pricing. Competitive electric rates must contain everything that the BG&E price to compare contains, allowing BG&E customers to compare prices on an even playing field.


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Commonwealth Edison Rates Increase by 20 Percent

The Commonwealth Edison Company, responsible for delivering power to 3.8 million electricity customers in northern Illinois, recently raised their electricity supply rates for residential customers by 20%. The increase went into effect on October 1, 2012. The new high rate of 8.32 cents includes generation and transmission charges. The 8.32 cents does not include the “Purchase Electricity Adjustment” which is a true-up payment ComEd charges or refunds customers based on the difference between what ComEd paid to acquire power supply for the default customer class and what ComEd actually charged this class of customers. ComEd has estimated that this true-up cost will be another $0.005 from now until May 2013. If this estimated increase is accurate, it means that the true price to compare will be closer to 8.8 cents per KWH for default paying customers in the ComEd territory.

Default paying customers include all electricity customers who receive their electric bill from the Commonwealth Edison Company who have not chosen a competitive electricity supply company to provide them with competitive eletric rates. Customers can eliminate the increase, and even pay less for electricity than the default rate of 6.935 cents that was offered during the summer by participating in the Illinois electric choice market and shopping for electricity rates that are competitive. Switching off of the high ComEd price to compare rate and onto a lower electric rate offered by a competitive electric supplier will also eliminate the “Purchase Electricity Adjustment” charge on the ComEd electric bill.

With competitive rates being as low as they are (see below) the number of power shoppers in Chicago and surrounding areas is growing rapidly. People are starting to understand that electric choice can simply provide a lower ComEd electric bill without sacrificing quality. ComEd is still in charge of delivering power and responding to power emergencies for their 3.8 million customers in northern Illinois. Furthermore, ComEd continues to deliver the monthly electric bill to their customers. Switching electric suppliers simply amounts to the rate on the supply section of the ComEd electric bill to be altered.

Competitive electric companies are able to offer substantial savings versus the Commonwealth Edison default price to compare rate. While many consumers are catching on, there are still many who have not had the time to research the benefits of energy choice. For more information on competitive electric rates in ComEd, see our daily update prices from approved suppliers licensed by the Illinois Commerce Commission.


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PECO Residential Rates Soar Upward

PECO energy customers who have yet to shop for a competitive electricity rate are about to see their electric bills rise substantially., an energy price information site for Pennsylvania consumers, has reported that a PECO residential rate increase that will go in effect on October 1. The increase will only effect those customers who are still paying the default rate for electricity supply with PECO; which represents all residential customers who have not chosen a competitive energy supplier to provide electricity for their home.

The average household using 1,000 KWh a month will see their PECO electric bill rise by $15.95 a month. That household, using 1,000 KWh a month, who would have paid a rate of $0.08905 per kilowatt hour in September will pay an additional $0.01595 starting in October for a total rate of $0.108 per kilowatt hour. PECO residential customer will pay $0.1050 per KWh for the first 500 KWh they consume, and $0.1114 for all kilowatt hours above that. This means that the more energy you use the higher your rate will be. Most houses use more than 500 KWh of electricity per month.

Fortunately, PECO residential electricity customers can protect themselves against the rate increase and pay even less than what they were paying in September. Several state licensed electricity suppliers (see below) are offering competitive electric rates to PECO energy customers that will offer huge savings versus the PECO default rates.

People who have been slow to shop for competitive rates often have lack of understanding of how the Pennsylvania electricity choice market functions. Here is what you need to know about switching off of the PECO default rate and onto a lower competitive electric rate:

1. The quality of the power will be the same.
2. PECO Energy remains your regulated electricity delivery company.
3. PECO Energy will continue to send you your monthly electric bill.
4. The lower competitive rate will replace the PECO default rate (generation and transmission)
5. PECO will not be upset that you have switched and are now saving money.

The last statement is often confusing to consumers who are new to electricity choice. Through the Pennsylvania energy choice act, PECO Energy remains a regulated utility company who generates revenues from the regulated distribution charges found on your electric bill. Those distribution rates are the same no matter who you choose to supply your electricity (generation and transmission rates)

Here are current competitive electric rates for PECO Energy customers that will save you money against the higher PECO default rates:


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Cheapest Pittsburgh Electric Rates

Duquesne Light no longer offers the cheapest electric rates in Pittsburgh. The keystone state’s decision to restructure their electricity market and give consumers a choice of who supplies their home with power has pushed prices down.

Competition has allowed alternative energy companies to enter the market, offering electric rates that are cheaper than Duquesne Light rates. Duquesne Light serves as the regulated power delivery company in the Pittsburgh area. They charge utility delivery rates that are monitored by the Pennsylvania Public Utility Commission, as well as default supply rates for Pittsburgh electricity consumers who do not take the time to shop for cheaper electric rates.

Customers in Pittsburgh looking to lower their Duquesne electric bill can to so easily by selecting a competitive electric rate from an alternative electricity company. The competitive electric rate will simply replace the Duquesne Light default rate on the bill, so if the rate is lower the customer’s bill will be less.

See updated electric rate offers below being offered in the Duquesne Light service area.


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PSEG BGS Summer Rates Posted

Summer electricity rates for PSEG customers on supply default rates have been announced. The PSEG default rates are named Basic Generation Service (BGS) charges by the New Jersey Board of Public Utilities. Customers who do not shop for competitive rates, offered through the New Jersey Electricity Choice and Competition Act, pay the BGS charges. Those customers who do shop for competitive electricity prices can find rates that are significantly lower than the BGS charges resulting in a lower PSEG electric bill. The competitive rates include all charges listed under the “Electricity Supply” section on the PSEG electric bill.

All BGS charges on the PSEG bill include the state SUT tax. The New Jersey Board of Public Utilities requires all competitive electricity companies to include the SUT in their rate offerings to residential customers so that consumers can compare PSEG electricity rates smoothly and accurately, eliminating potential hidden fees that companies might otherwise try to impose.

Starting on June 1, 2012 residential customers paying BGS rates will pay $0.1097 per KWh for their first 600 KWh and $0.119038 for everything in excess of 600 KWh. Most residential properties bigger than a one bedroom apartment will consumer more than 600 KWh. The average BGS customer will pay over $0.1100 on their electric bill this summer. Competitive rates (see below) can reduce the rate per KWh tremendously resulting in a lower PSEG electric bill.


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Duquesne Light Increases Price to Compare

Duquesne Light customers who have not shopped for competitive electricity rates are paying much more for power than they need to. Recently Duquesne Light increased their price to compare rate, the rate customers pay for electricity who have not selected an alternative supplier, from 9.32 cents to 9.89 cents. Meanwhile competitive rates give consumers the ability to pay as little as 6.47 cents which is 35% less than the current default rate.

The amount of money electricity consumers can save in the Duquesne Light area is among the highest in competitive energy markets in the country. Word of the potential to save on electric bills is getting around in the Pittsburgh area as 38% of residential customers have switched electric suppliers in order to get off of the high Duquesne Light default rate. Duquesne Light serves around 500,000 residential customers in the Pittsburgh and surrounding areas.

The Duquesne Light customers who are still paying the default price to compare often have a misunderstanding of how Pennsylvania electricity choice has been set up as well as a lack of trust in the alternative energy companies offering rates. These consumers should understand that switching electricity suppliers will not end their relationship with Duquesne Light. Duquesne Light will continue to deliver power to their customers no matter which electric supplier is selected to provide power. In addition, Duquesne Light also continues to send the monthly power bill and respond to power failure and emergencies.

The Duquesne Light price to compare is determine by an auction process where competitive energy companies bid for the right to service default paying customers. These companies have submitted bids with a premium on the pricing since at any time default customers can leave the default rate and sign a contract with an alternative energy company offering a lower electric rate. Duquesne Light collects the money for the default rates and passes it through to the energy companies who have won the previously held auctions. Duquesne Light does not care if their customers switch electric suppliers because their revenues and profit margins are derived from the delivery charges found on the Duquesne Light electric bill.

The delivery charge remain regulated by the state of Pennsylvania. Often consumers fear that if they switch to a lower electric rate than Duquesne Light will “make up the difference” by increasing their delivery charges. This could not happen since the delivery rates are approved at the state level for the entire class of residential customers. Furthermore, as noted above, Duquesne Light does not profit from the price to compare default rate that they charge, so it does not hurt them when a customer switches to a competitive electricity company.


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Higher Summer Electric Bills for PPL Customers

Electricity rates will be increasing for PP&L customers who remain on the default “Price to Compare” rate on June 1, 2012 for both residential and business consumers. Residential consumers will see a 11.9% increase on their electricity supply charges which include electricity generation and transmission costs.

PP&L is encouraging their customers to shop for competitive power in order to lower their electric bills. Competitive electric rates are available that are lower than the default rates. Pennsylvania electricity choice allows consumers to shop and compare electric rates from multiple power companies. No matter which electricity company is chosen to supply power, PP&L customers continue to receive power delivery service and their monthly electric bill from PP&L.

Many consumers still paying the “Price to Compare” rate offered by PP&L are doing so out of loyalty. Customers should understand that PP&L is not in the business of offering competitive generation rates and are now only in the business of delivery the power and managing the distribution lines. PP&L does not profit from the default rates that they offer, and instead passes the revenues from these charges onto other energy companies who have won the contract to provide service to default paying customers through an auction process.

Customers who refuse to shop for the best electric rates will see the price they pay for electricity go from 6.935 cents on May 31, 2012 to 7.993 on June 1, 2012. So far 40% of all residential customers in the PP&L utility area are buying power from competitive electricity companies. That number is expected to grow to over 50% by the end of the summer, resulting in the majority of the market being participants in energy choice.

Below are the best electric rates available from competitive suppliers. The rates are updated daily.


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Compare Electricity Rates in Chicago

The Illinois energy choice laws are allowing consumers to compare electricity rates in Chicago, and the results have been lower ComEd electric bills with zero downside.

Choosing to buy electricity from an alternative electricity company at lower generation electric rates than the ComEd default rates simply allows the citizens of Illinois to pay less on their monthly electric bill. When you compare electricity rates in Chicago it is important to make sure that you are comparing apples to apples. For residential customers, the Illinois Commerce Commission demands that all electricity companies offer rates on the same playing field and that they include both generation and transmission. However, consumers do need to make sure that the rate they choose is fixed and not variable.

Many electricity companies offer variable rates that do not contain limits to how high the price can go. The electricity company will market their variable rate with an initial rate. This rate will only be guaranteed for the first month, after which the rate can go up immediately. On contrast, fixed electric rates will not change during the term of the contract. If the fixed rate is set at a lower price, when compared to the default rate, you are guaranteed to pay less for your electricity.

Many consumers may not want to switch electricity companies because they fear the contract. The truth is that the contract is a good thing as it protects the consumer, indicating what the electric rate will be and for how long (the term). Electing to receive power from a company without a contract will put the consumer at extreme price volatility risk. Furthermore, the Illinois Commerce Commission oversees the contract language allowed by the electricity companies. In conclusion, taking the time to compare electricity rates in Chicago will result in huge electric bill savings.


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