Electricity company

Chicago consumers are no longer confined to purchasing their power from the local utility company. As a result of the Illinois Electricity Choice Act, power users can now shop for lower prices among several electricity companies in Chicago.

Energy choice in Chicago is providing Chicago residences with huge savings versus their traditional utility’s price to compare. Commonwealth Edison has provided electricity service to the city of Chicago and surrounding areas since 1907. The new energy choice laws has changed the role of ComEd from a full service electricity company who supplies and delivers power to their 3.6 million customers, to just being in charge of power delivery.

ComEd is encouraging consumers to find low rates from Chicago electricity companies, citing that they do not profit off of price to compare default rates. Money from the price to compare rates are passed through to electricity companies who have bid for the right to service default customers. ComEd earns revenues and profits from the delivery charges on the bill which remain regulated by the Illinois Commerce Commission Energy Division.

Lower electricity rates are currently available against the official ComEd price to compare rate which includes the generation and transmission rates. The lower electric rates will result in big savings on the electric bill, which continues to be sent by ComEd even after a competitive electricity company is chosen.



Rockland Electric delivers electricity to just under 63,000 residences in northern New Jersey.  Though electricity choice has existed in New Jersey for several years, competitive electricity companies have just recently started offering competitive electricity rates in the Rockland Electric area.

Though, as of December 2010, only 1.8 percent of the residential customers have chosen an alternative electric supplier, Rockland Electric residential customers can save as much as 18% versus the Rockland default rates.  Rockland Electric offers default electricity rates for those customers who do not shop and compare electricity offers.

People have been slow to shop the competitive energy market in the area mostly because they are unaware of their choices.  Of the four incumbent electricity utility companies in New Jersey, Rockland Electric is by far the smallest.  Because of this, the competitive electricity suppliers are focusing more of their marketing efforts on the bigger utility areas of PSEG and JCPL, even though the greatest savings opportunities currently exist for Rockland customers.

It is expected that more and more Rockland Electric customers will shop for lower rates in 2011 as they become more familiar with their electricity choice options.

Rockland Electric Price to Compare – $0.1215
MxEnergy $0.097 /Kwh 20% Savings
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Residential customers who are serviced by Atlantic City Electric can currently save up to 22.5% on their electric bills. This is a result of the New Jersey Electricity Choice and Competition Act that went into effect in 2003.

Savings above 10% are available for the first time for Atlantic City Electric customers because retail electric rates in the competitive market are lower than current Atlantic City Electric default rates, also called Basic Generation Service (BGS) rates.

When an Atlantic City Electric customer chooses an alternative electric supplier, they will continue to receive their bill from Atlantic City Electric, who remains the customer’s electricity delivery company and who is still responsible for the maintenance and management of the lines and wires throughout the southern New Jersey Electricity grid.

See offers from competitive New Jersey Electricity Companies Below:



We have recently been getting a lot of questions pertaining to the Energy Alliance of Pennsylvania as a result of their increased rates over the past few months.  After much research, here is what I have discovered:

The Energy Alliance of Pennsylvania is a licensed retail electric provider that was set up by the Manufacturing and Business Association (MBA) through Fluent Energy as a way to get better electric rates for their members.  In their own words….

“The Association has established the Employers’ Energy Alliance of Pennsylvania, Inc. (EEA-PA), which will act as an energy supplier for its more than 4,700 member companies and organizations operating throughout central and northwest Pennsylvania. By purchasing directly from the electric grid and gas pipeline and eliminating broker commissions and marketing costs, the EEA-PA is able to pass savings directly on to participating members.” (keep a mental note of the words in bold)

The statement sounds good in theory, but many members saw their rates skyrocket to over $0.13 a few months ago when PPL default rates are at $0.10402 and the majority of businesses in the area are able to get low fixed rate offers of $0.085 (35% less than the $0.13 rate).  So what is going on here?

First, upon reviewing the Energy Alliance Electric Service Agreement, the Alliance buys their electricity on a monthly basis from the wholesale market which makes them extremely and completely open to spikes in the market.  When the Alliance charged their customers over $0.13 the wholesale market did see a bump in prices.  However, the jump in wholesale prices should not have caused rates to go up as high as they did.  Here is where things get really interesting….

In the Electric Service Agreement, the part that explains how customers will be charged, it reads:

“Basic Commodity Price: this is a variable price which is comprised of the weighted average PJM Independent System Operator commodity price and other associated costs of goods sold, plus the administrative fee per kWh set forth below, and any applicable taxes and/or agent fees.”

To break that sentence down, the first part (basic commodity price) is the wholesale price of electricity.  The administrative fee per kwh is listed in the contract at $0.0012 which isn’t out of the ordinary.  Applicable taxes are always warranted.  Then comes the kicker, ever so slightly written, “agent fees”.  What exactly is an agent fee?  It is not defined anywhere else in the contract, and to me it seems like it is the very thing the Alliance set out to eliminate in the first place (bold area from above “liminating broker commissions and marketing costs“).

Basically this “agent fee” gives the Energy Alliance the right to tack on whatever commission they would like on a monthly basis, and it is possible that when the members of this alliance payed a rate of $0.13 cents per KWh a few months ago, someone walked away with a nice undeserved bonus.

I would recommend to any business involved in this Energy Alliance to seek out a fixed electric rate that will prevent such spikes to happen in the future.  For a list of electric companies offering fixed rates and their offers, email us or write a comment to this article.

The thing that really gets to me about the Energy Alliance of Pennsylvania is the way they market themselves.  They come off trying to sell the whole “power in numbers” mentality when really their buying structure is not taking advantage of their buying power at all.  Furthermore, there statement of lower rates due to the fact that they will eliminate broker fees, followed up by adding their own agent fees is just plain misleading.  Even the name “Energy Alliance of PA” gives the impression that they are a non-profit when clearly they are as profit seeking as Walmart or McDonalds.



Texas Electric Bill On The Rise

September 7, 2010

If you are living in Texas and have noticed in recent months that your monthly electric bill has become higher, it may be time to start looking for a new electricity contract.  The reason for the recent upswing in your electricity bill may very well be due to the fact that your old electricity rate […]

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Compare CLP Electricity

September 2, 2010

Connecticut Light and Power (CLP) customers can reduce their home electricity bills by finding a cheaper electric rate for the supply section on their electric bill.  There are still a number of Connecticut residences who are unaware of their electricity choice options. For CL&P residential customers, you can find your competitive electric rate underneath the […]

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Philadelphia Commercial Electric Rates in 2011

August 16, 2010

Philadelphia electricity users are customers of PECO energy, who provides electric supply service as well as electric delivery service for businesses and households in the city.  While PECO energy will remain the electric delivery company for these electric users, many customers will change their electric supply company in 2011 when PECO’s capped rates expire. Starting […]

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Delaware Electric Rates

August 10, 2010

Electric rate payers who are serviced by the utility Delmarva in Delaware are finding cheaper electric rates in the competitive market.  Both residential and commercial electric customers are discovering that the way to lower their electric bill is to find a low cost electricity company who is offering a fixed electric rate that is lower […]

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How do I Lower My Electric Bill

August 9, 2010

States that have decided to deregulate, or restructure, their electricity utilities are giving their consumers the opportunity to lower their electric bills.  Misunderstanding how to lower the electric bill has been a problem for some of these electric rate payers. As a simple review, the electric bill is divided into two main sections; the delivery […]

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Kilowatt Hour Cost Increases for Large Commercial PPL Customers

August 5, 2010

Large commercial and industrial electricity customers in PPL who are on a variable rate will see an increase on their electric bills in August due to an increase in their kilowatt hour cost.  Many PPL (Pennsylvania Power and Light) commercial customers who are on default service and are under the PPL rate class of MP, […]

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