Meted Default Prices Rise by 25%

Pennsylvania electricity customers who receive their monthly electric bill from the Metropolitan Edison Electricity (Meted) company are likely to see a huge increase on their expenses this summer if they are not purchasing their power from a competitive supplier. On June 1, 2014 the default rate for generation and transmission service for Meted residential customers increased from $0.07753 to $0.09725 per KWh. The increase will result in a 25% increase in the price customers pay for power on their monthly Meted electricity bills. The 25% increase only represents the rise in the rate and not the jump in usage that most consumers see in the summer months compared to the spring. Taking into account both the usage and rate increases, Meted residential customer are expected to see electric bills 35-55% higher in June through August as compared to March through May.

The rate increase will only occur for Meted customers who have not selected a competitive supplier. Customers who have not shopped pay a default rate for power labeled the “Price to Compare”. If a consumer can find a competitive rate lower than the current price to compare they will be able to save money on their Meted electric bill.. Current competitive Meted electricity rates are showing savings as high as 17% versus the Meted default price to compare rate.

Below is a list of updated Meted competitive electricity prices. All offers are updated on a daily basis and are offered from companies who are licensed by the Pennsylvania Public Utility Commission.


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Meted Power Companies

Power companies who have taken notice to the success of electric choice in Pennsylvania’s largest cities are now targeting the smaller towns by offering competitive rates and instant bill savings. The Metropolitan Edison Company is the fourth largest electric utility in the state of Pennsylvania delivering power to more than 550,000 power users, all of whom are outside of Philadelphia and Pittsburgh. Meted customers have seen a surge in electricity competitive rate offers as power companies continue to enter the area looking for new customers.

The competitive power companies have been successful in their marketing efforts to Meted customers. Over the last year the residential switch percentage, the number of customers who are purchasing their power from a competitive supplier in relation to the total number of Meted residential customers, has surged to 35.9% as reported by the Pennsylvania Public Utility Commission. The Meted switch rate is actually higher than the 32% switch rate of Pennsylvania’s largest electric utility, PECO Energy, where power companies have spent more efforts on gaining customers.

Residential customers in the Meted service area are learning that can save money on their monthly Meted electric bills by shopping for competitive low electric rates. Customers who do not shop for competitive rates pay a default electric rate through Meted. Though the Meted default rate recently went down, competitive rates in the area still remain lower. The majority of power companies offering service to Meted customers offer consolidated billing which means that the customer continue to receive the same familiar electric bill from Meted even after they switch.

A list of some of the more competitive rate offerings for Meted residential customers is below. Rate offers are updated daily.


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Meted Choice Brings Savings to Electricity Bills

Though Pennsylvania has had an active energy choice market for several years, only recently have customers living in the Meted utility service area seen the benefits. As a result of rising Meted generation and transmission rates, competitive electricity suppliers have started offering low electric prices to customers with properties in the Meted service area.

As the fourth largest power utility in Pennsylvania, Metropolitan Edison serves over a half million residential electricity customers, all of which are now able to shop and compare Met-Ed electricity rates in order to save money. Many competitive energy suppliers were slow to enter the Met-Ed market because the default rates in the area had been low over the past couple of years. This price environment did not allow for competitive rates to offer savings to Met-Ed consumers which is often needed in a newly deregulated market in order to stimulate shopping. With the default rate recently increasing and competitive power rates dropping, the opportunity for competitive electricity suppliers has finally arrived and the result has been lower Met-Ed electric bills for consumers who take the time to power shop.

Current competitive electricity rates are providing significant savings to Met-Ed residential electricity customers. The switching process in Met-Ed simply requires a consumer to choose a competitive electric rate and enroll either online or by phone. Once the switch request is in you can expect the new electric rate to kick in at the next available scheduled meter read date. After that you simply get your Met-Ed electric bill as usual with the competitive electric rate replacing the Met-Ed default price to compare rate.


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Electricity Savings in MetEd

Pennsylvania electricity customers serviced by Metropolitan Edison (Met-Ed) are seeing competitive electric rate offers for the first time. Met-Ed default prices were capped until January 1, 2011 which had previously kept energy companies away. Now that the default price caps have been lifted competitive suppliers are able to offer low electric rates for consumers.

Electric shopping has been a success in other parts of Pennsylvania. The Pennsylvania utility companies PECO Energy, Pennsylvania Power & Light, and Duquesne Light have seen increased competition and shopping activity among their customers. Similar results are expected for the Met-Ed territory.

Met-Ed will continue to serve as the electric delivery company for their customers even if a switch for lower generation prices is made. Electric choice in Pennsylvania is about choosing your generation electric supplier, the utility company remains the same and remains regulated by the Pennsylvania Public Utility Commission.


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Met Ed Electric

Electricity customers who are serviced by Metropolitan Edison Company (Met-Ed) are preparing to shop the competitive electricity market for the first time.  On January 1, 2011 electric rates for Met Ed customers, that had previously been capped, will expire giving customers the option to stay on the Med Ed default supply price or shop the market for lower electric rates.

It is expected that Met Ed customers who compare electricity rate offers from electricity companies will be able to save money versus the Met-Ed default price to compare rates.  Electricity shopping will result in lower electric bills for those electric customers who are able to lock in lower electric rates than the new Met Ed rates.

Met Ed residential customers should take the time to compare all electric offers.  It is expected that some electric companies will offer residential Met Ed customers variable rates that fluctuate with market rates, while other electric companies will offer fixed electric rates for up to two years that will give households price protection.  Other markets in Pennsylvania have seen low variable introductory rates followed by immediate spikes.  Sometimes a slightly higher fixed electric rate will save you a lot more in the long run compared to a lower variable electric rate.

Met Ed commercial and industrial customers will be given a variety of electricity rate options.  As Met Ed moves from a regulated environment to a competitive market, it will be extremely important that businesses take the time to educate themselves on all of their electricity supply options.  The right choice can save them thousands on their electricity bills.

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Met-Ed Customers Expect Higher Electric Rates in 2011

The Pennsylvania Public Utility Commission expects the average Met-Ed residential customer’s bill to increase by about 9.1 percent when the utility’s rate cap expires in December.  That hike is based on wholesale electric prices that have, until recently, dropped based on the sluggish economy and customers who cut back on their power consumption.

A division of Akron, Ohio-based FirstEnergy, Met- Ed serves roughly 190,000 customers in York County.  On Dec. 31, Met- Ed’s rate cap expires, and its customers will then pay full-market prices for their power.  As of May, Met-Ed had completed three of its four energy auctions and had bought the lion’s share of the power it will distribute to its customers starting Jan. 1, 2011.

During the earlier part of this year, wholesale electric prices stayed low as more people cut back on their demand for power.  Also, at the time, wholesale natural gas prices declined.  Typically, natural gas is one fuel that power companies use in the generation of electricity.  It was at that time that Met-Ed held its first three energy auctions.  This fall, Met-Ed has scheduled its final energy auction.  Once the final auction is held, competitive suppliers will be able to determine whether or not they wish to enter the market and offer electric customers in Met-Ed competitive electric rates.

Despite the slight uptick in national wholesale power prices, the PUC doesn’t expect a major change from its prediction of a 9.1 percent increase for Met-Ed customers.  It is uncertain how the competitive market will look like for Met-Ed electric customers.  Dozens of competitors are offering customers choice in PPL, another Pennsylvania utility area whose capped rates expired at the end of 2009.

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Lower My PECO Bill

PECO is trying to prepare their customers for choice in who charges them their electric rates by unleashing multiple programs.  Recently, the PA Public Utilities Commission announced that Pennsylvania utility companies will offer customers a choice of who they buy their electricity from.  In addition, price caps that expired in 2011 in the PECO area - as well as Met-Ed, Penn Electric, and West Penn – have increased default rates and given consumers an incentive to shop.

PECO is rolling out numerous programs to help customers cope with increases including the PECO Smart Home E-Audit, Smart Lighting Discounts, Smart Home Rebates, and Smart Appliance Recycling.  Alot of smart programs, but probably the smartest way consumers will be able to reduce their electricity bill is by shopping for an alternative supplier that will offer a reduced rate versus the PECO price to compare default rates.

PECO will continue to deliver power to those customers who they are currently delivering to as well as continue to send invoices out.    The decision to choose an alternative electric generation company will simply be a choice to pay less.  We will be providing contact information and rates for alternative providers as we get closer to 2011.

Update, as promised above, here are the absolute best rates and electric providers we have found in PECO:
Rates are updated Daily


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PA Electric Rate Choice Offers Savings

Question and Answers for Electricity Choice in Pennsylvania

Why should I shop the market?

Savings are available.  If you haven’t shopped you are paying what the state calls a price-to-compare rate.  Your local utility (PPL, PECO, Met-Ed, Allegheny, ect.) does not profit off of price to compare rates.  They simply pass on these default rates that are provided by generation companies who have bid to supply energy to you and other customers who are slow to shop.

Why shouldn’t I shop the market?

Only if price to compare rates are lower than the current competitive market rates.  This isn’t the case right now.  If the goal is to pay the lowest electric rate (and why shouldn’t it be?) then you should shop and sign a contract with a licensed electricity generation company.

What is involved in the process of changing who supplies my electricity?

In order to change electric suppliers and receive a lower rate, all that needs to be done is to sign an agreement form with the provider you have chosen.  The agreement form will stipulate the rate you are paying for the term (example: $0.085 cents per KWh for 12 months)

Will someone come to my property to change the wiring?

No, nothing is physically changed.  Your local utility still delivers power to your property.  The new supplier simply informs the utility that you will no longer be paying default (price to compare) rates and instead will be paying the lower rate that you have contracted for.

Can the local utility “get back” at me for switching off of the price to compare by not responding to service calls or charging me more for delivery?

Absolutely not!  First, through deregulation the utility companies are only in the business of delivering power.  They are not able to make profits off of supply service.  There supply service is through other private companies who have won a series of auctions to be able to supply price to compare rates to customers.

Second, just to give you peace of mind, all actions by utilities including delivery rates and repair services and regulated and monitored by the PA Public Utility Service.

Feel free to post more questions that will be answered immediately.

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