electricity savings

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:


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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 lock in a 24 month rate as low as 7.19 cents which will yield a savings of 19% on the electric bill.  While customers new to electricity choice might be hesitant to lock in a rate for two years, it is important for them to understand the benefits of long term fixed electric contracts.  The fixed electric contract will save customers money right away and protect them from potential default rate increases in the summer and in 2012.  Electricity customers can also lock in for a shorter term at 12 months at a low rate of 7.55 cents resulting in a healthy 15% electric bill savings.

PECO electricity savings and promotions are expanding in the Philadelphia area as suppliers compete for market share.  The PECO territory saw electric price caps expire on January 1 which has opened the door for alternative electric suppliers to offer rates to PECO default rate payers.

Duquesne Light saw their rate caps expire several years ago.  However electric suppliers were slow to enter the market due to the low default price to compare rates that the utility was offering their customers as a result of an auction they held among wholesale energy suppliers.  Now that those default rates are higher than what retail electric suppliers can offer, electricity companies have started to offer service to customers as they can now offer lower electric rates and electric bill savings.  Customers who switch electric suppliers will still receive their monthly electric bill from Duquesne Light.  The only difference will be the lower electricity rate on the bill.

Current Duquesne Light competitive offers:


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Seven years after New Jersey officially deregulated their electricity market, residences of the state are finally seeing competitive electric rates that can save them real dollars off of their monthly electric bill.

If you are a customer of PSE&G, JCP&L, Rockland Electric, or Atlantic City Electric, savings can be found by shopping the competitive electricity market for lower prices.  Alternative electric suppliers had been slow to enter the New Jersey market for a variety of reasons.  However, a significant drop in wholesale electric prices combined with high utility default rates, have given electricity companies a great reason to get licensed by the state and market their services and rates to New Jersey customers.

Residential customers can choose between a variable electric rate that can fluctuate month to month but gives the customer the option to leave the service at any time, or a fixed electric rate that locks in your rate for a specific period of time, usually anywhere from 4-24 months.

Here are the residential electricity rates available in New Jersey at this time:
PSEG Rates



JCPL Rates



Atlantic City Electric Rates



Some of the companies are running introductory offers with cashback bonuses.

For a low variable rate with a $50 Cashback Bonus introductory offer, click here.
Low fixed rate offers with a Visa Prepaid card up to $75 can be found here

In most cases, including the offers above, even after you switch electric suppliers you will still get your monthly electric bill from your utility company.  The utility companies (PSEG, JCPL, Rockland, Atlantic City Electric) are still regulated lines and wires company and are responsible for billing residential electric customers.  They only provide a default electric rate to residential customers because they are required to do so by the state under the terms of the New Jersey Competition and Electric Choice Bill.

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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 than the Delmarva Price to Compare rate.

Delmarva Power, the utility provider that serves the majority of Delaware, offers their Price to Compare rates as a default service for those customers who have not compared electric rates with other electricity companies.  Delmarva continues to serve as the lines and wires company in Delaware and thus is still responsible for the delivery of the power to homes and businesses.  Delmarva does not receive profits from offering default service to electricity consumers.  Delmarva is encouraging their customers to find lower electric rates and locking in the rates with alternative electricity suppliers.

By doing an electricity company comparison, customers can reduce their electric bills by 10-30% depending on their rate class, usage requirements, and electric rate product choice.  As an example, small general service customers, a rate class for small businesses in Delaware, are paying an electric default rate of 11.27 cents per kilowatt hour.  We have found fixed electric rates for such customers as low as 9.0 cents per kilowatt hour which translates into a 20 percent savings on the Delaware electric bill.

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NJ Default Rates will Decrease in 2010, Greater Savings Available for Shoppers

May 5, 2010

Electric rates will decrease for the second year in a row for New Jersey electric consumers who are on default service (i.e. have not shopped for a competitive supplier).  However, despite the decrease, greater savings are still available for these default service commercial and industrial customers if they decide to shop the competitive market for […]

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Understanding the PPL bill

February 23, 2010

With electricity competition heating up in the PPL territory, many consumers have voiced their confusion over their current PPL bill.  In order for PPL electricity customers (both commercial and residential) to save money through deregulation, they have to understand what the prices they are being offered should be compared against; PPL has labeled this as […]

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PPL Savings Available

January 21, 2010

January 21, 2010 On January 1, 2010 PPL electricity customers had their rates increase anywhere between 18-36%.  The increase was a result of the 1996 Pennsylvania Electricity Generation and Customer Choice Act which capped rates in the PPL territory from 1997 until the end of 2009.  Most PPL customers will get their first taste of […]

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Electricity Deregulation vs Telephone Deregulation

October 25, 2009

Many businesses have been reluctant to look into the benefits of electricity deregulation because of the bad taste that telephone deregulation has left in their mouths. When the telephone market first became deregulated, changing providers could be a huge headache for businesses.  There were interruptions in service, lengthy contracts, and promised savings that were negated […]

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