electric supplier

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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Residential electricity customers of ComEd are seeing rate savings by competitive electricity companies for the first time since the Electric Choice Laws in Illinois were established in 2007. With ComEd price to compare rates having been established through May 2012, customers can look at competitive electric rates and see clear savings that will show up on their monthly electric bill.

People can find lower ComEd rates by shopping for competitive electric rates at online energy comparison sites. Current savings are well above 10%. The ComEd price to compare includes electricity generation and transmission charges. The distribution rates found on the ComEd electric bill continue to be regulated by the Illinois Utility Commission and charged by ComEd. Choosing a competitive electricity company for electricity supply is simply about finding and paying a lower electric rate. When a switch is made there are no service interruptions and you continue to receive your monthly electric bill from ComEd.

The misconception about electric choice in Illinois is that by selecting an alternative electric company you are leaving ComEd. The reality is that you remain a ComEd customer no matter who you choose for electricity generation. Furthermore, ComEd does not profit off of the default price to compare generation rate, they simply pass on the revenues from customers to electricity companies. ComEd does not care if their customers shop for competitive rates, their profits are earned from the regulate distribution charges.

Electric suppliers have started to enter the ComEd market and offer products to residential customer, and more are expected over the next year as ComEd becomes an active residential electric choice market.

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PSEG electricity customers can save as much as 17% on their electric supply bills by selecting an alternative electric supplier. Electricity shopping has been picking up steam in recent months as more competitive electricity companies have filed and received electricity supplier licenses from the New Jersey Board of Public Utilities. However, many consumers are still uninformed that New Jersey in now an electric choice market, and even more are uninformed about just how much they can save.

In the past, surveys done in New Jersey regarding market awareness on electric choice has shown that many people just don’t want to go through the “hassle” of shopping for electricity because the end result is only a few dollars a month in savings. However, as competition has heated up and pushed competitive pricing down, the savings are now becoming quite more significant, especially for medium and large houses.  In the past, electricity savings in New Jersey had been  reserved for the largest commercial and industrial customers in the state.  Things have certainly changed as more and more alternative suppliers compete for the 3.3 million New Jersey residential electricity consumers.

PSEG customers using 1,000 KWh would save $20 a month ($240 per year) by choosing the lowest rate available compared to the PSEG default rate.  Homes using 2,000 KWh would save more than twice that ($46.60 a month and $559.20 a year) because PSEG default rates get higher the more power you consume.  A good rule of thumb for figuring out your average monthly KWh is to figure you will use 1 KWh for every square foot of home (1,500 square foot home would use 1,500 KWh average per month).

 

 
Current Rate Offers From Competitive Suppliers (Updated Daily):


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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.

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Electric Choice Provides Summer Savings in PPL

April 24, 2011

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 […]

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Delmarva DE Electricity

April 11, 2011

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 […]

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Duquesne Light Customers are Finding Lower Electric Rates

March 16, 2011

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 […]

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PSE & G NJ Rates

February 26, 2011

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 […]

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PECO Electric Bill

February 25, 2011

PECO energy is the utility company that delivers electricity to Philadelphia and surrounding areas.  PECO is the largest utility in Pennsylvania in terms of the number of customers it serves. Many PECO energy customers might be unaware of their ability to choose an alternative electric supplier for the generation portion of their electricity bill.  With […]

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PECO Energy Bill Pay

February 20, 2011

PECO energy customers might be surprised to learn that even if they choose an alternative electric supplier, they will still be able to pay their PECO bill the same way they have been doing so, including online with e-bill.  This is due to the way electricity choice has been set up in the PECO territory […]

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