Businesses in central Pennsylvania who receive their power from Pennsylvania Power & Light will face a sharp price increase that is set to go into effect in March. PP&L announced that their commercial electricity price to compare rate will increase by 8.5% as the current rate of $0.09325 per KWh will rise to $0.10121 per KWh. The rate increase will effect businesses who are not currently purchasing their power from a competitive Pennsylvania electricity supplier and who instead are on the PP&L default price to compare rate structure.

Roughly 47% of commercial customers serviced by PP&L are on the default rate structure. These customers can prevent the rate increase, and even lower their current rate, by shopping for a competitive Pennsylvania commercial electricity rate which would replace the PP&L price to compare rate on the electric bill.

The Pennsylvania electricity choice market has seen more activity in the commercial sector than the residential since the market took off five years ago. Statewide 45.9% of all commercial electricity customers are purchasing their power from a competitive supplier through a contract. In contrast, only 35.9% of residential customers have selected an alternative to their utility. Commercial participation is highest in the PP&L service area. The rate hike that will go into effect on March 1, 2015 is expected to widen the gap even further as business owners who previously did not look into competitive rates will likely take a closer look at their options.

Business owners can compare commercial PP&L electricity rates by selecting their utility and average monthly bill amount. An energy matrix offering different fixed rate terms and start months will populate, allowing the business to decide on when their contract will start and for how long they would like to secure the rate.

To see current commercial electricity rates select the boxes below:

Residential electricity customers in the Meted service area in Pennsylvania saw their utility price to compare rate increase by twenty-five percent in the summer. This sharp price increase made room for competitive electricity suppliers in the area to offer prices that were significantly lower than the default rate, yielding double digit savings opportunities. As the summer comes to an end, those saving opportunities still exist for Meted consumers who have remained on the high Meted price to compare.

Despite the fact that competitive Pennsylvania electricity suppliers are offering rates with savings of as much as 17% versus the Meted default price, only 35.7% of residential customers in the area have selected a competitive offer. Customers who are skeptical of selecting a competitive electricity rate should know that all competitive rate plans are offered by electricity suppliers who are licensed with the Pennsylvania Public Utility Commission. In addition, even after the switch is made, customers will continue to receive their electric bill from Meted. Instead of being charged the current Meted default rate of $0.09725, the competitive rate would be charged instead, allowing the customer to save whatever difference is yielded.

Current competitive offers in Meted from electricity suppliers licensed by the state of Pennsylvania can be found below. All rate plans are updated in real time.

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.

Electricity competition in the state of Pennsylvania has created a robust marketplace where dozens of licensed power suppliers compete with one another for customers of all sizes. As the state’s largest utility, PECO Energy has more electricity companies offering competitive rates to their customers than any other utility in Pennsylvania. Competitive prices have allowed more than two million customers to save on their monthly PECO Energy bills.

PECO Energy delivers power to more than 1.6 million customers in southeastern Pennsylvania in an area that includes Philadelphia. While true electricity choice is only three years old in the PECO service area, competitive power companies have been successful in enrolling over 33% of the residential class in the area and 50% of commercial customers. As is often true with new energy choice markets, business customers were first take advantage of competitive prices offering savings against higher default supply rates. As more and more businesses have become familiar with power shopping, competitive suppliers began offering service to the 1.4 million residential customer pool.

The combination of competing companies and high default rates have made finding low electric rates in PECO an easy task for those willing to spend a few minutes learning about their options. By finding a fixed rate that is lower than the PECO price to compare default rate, a customer is easily able to see the savings on their monthly PECO electric bills. Consumers who are wanting to save on their PECO Energy bills simply have to shop for competitive prices.

Residential electricity customers in the PECO Energy service area will see a rate increase that will go into effect on December 1, 2013. The rate PECO customers pay for power supply, which includes generation and transmission charges, will increase from a current high rate of $0.0935 per KWh to an even higher $0.0972. The 4% increase comes at a time when residential customers in the area can find competitive power rates under $0.08 per KWh.

Competitive power companies in Pennsylvania have been able to offer lower electricity rates to PECO consumers since 2011. The PECO rate increase that will go into effect in December is only for residential consumers who have not shopped for competitive electricity rates. These customers pay a default rate that is determined by an auction process. Competitive rates, which are based on the energy wholesale buying strategies of competitive energy companies, have been able to offer attractive electric rates well below the PECO default rate.

At this point in time only about 31% of residential PECO customers are participating in Pennsylvania electricity choice by purchasing their power supply from a competitive electricity supplier. With current competitive prices yielding 19% savings versus the December 2013 PECO default rate there is no reason for a default paying customer to not start power shopping. The rate increase is expected to give a slight boost in competitive electricity company sales, however there is really no reason for everyone in the south eastern part of Pennsylvania to take five minutes and find a price plan that will substantially reduce their electricity bills. Online energy price comparison sites have made it easy for PECO customers to compare electricity rates on one platform. While many people just want to get the lowest possible fixe rate that is available, some consumers might opt to pay a slightly higher price in order to lock in a longer term so that they are protected from future price increases like the one about to take place. The online energy price comparison tool allows consumers to quickly compare prices and make a strategic decision.

Below are the lowest fixed electric rates available for PECO Energy customers. We recommend locking in fixed rate as opposed to a variable rate option as variable plans have been seen rising rather rapidly after the first month of service. Even though you can switch suppliers if the variable plan rises, it still takes up to two months for the switch to take place which will leave you in limbo with the variable price supplier free to charge whatever they want.

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.

More than 360,000 electricity customers in western Pennsylvania will see a 16.8% increase on their West Penn Power electric bills this summer. West Penn Power, a electric utility company who services around 550,000 residential power consumers, will increase their generation supply rate from 5.386 cents to 6.29 cents. The substantial electric rate increase will only apply to those West Penn Power customers who have not shopped the competitive marketplace for lower power rates. These customers pay a default rate for power supply known as the Price to Compare.

Electricity customers can avoid this price increase by finding a low electric rate offered by a competitive supplier. Through Pennsylvania electricity choice, when a customer chooses to buy their power from a competitive supplier the competitive rate replaces the utility price to compare. West Penn Power, formerly known as Allegheny Power, has had low default price compare rates over the last two years that has kept the overall switch rate in the area below 30 percent. However, with the default rate now poised to increase by almost 17 percent, the number of West Penn Power shoppers is expected to increase exponentially.

When shopping for lower electric rates in West Penn Power, make sure that the rate is an apples to apples comparison to the West Penn Power price to compare. The rate should include generation, transmission, the gross receipts tax (GRT), and should not have any additional monthly fees or switching fees.

The Pennsylvania electricity market is becoming more efficient as consistent market growth in customer and supplier participation has occurred. The Pennsylvania Public Utilities Commission announced that the enrollment window for a customer wishing to change electricity suppliers will shorten from 16 days to 11 days.

The enrollment window is the amount of time that a customer needs to submit their supplier change request prior to their meter read date. If the switch request is made inside of the enrollment window than the switch will not occur until the next months meter read date. Often this is the case causing a full two billing cycles to pass before a customer sees their new rate kick in. The large amount of time that passes between choosing an alternative supplier and actually seeing the effects on the electric bill has caused confusion and uncertainty in a new market for many consumers. When a customer chooses a lower rate, and then gets their bill 2 weeks later with the old higher rate still showing, the customer starts to doubt whether the switch has been made.

Why such a long wait period?

Customers participating in electricity choice for the first time are expecting the new low rate they have selected to kick in right away. Unfortunately this is not how the market currently functions. When a consumer chooses a competitive electricity supplier, that supplier than submits the order to the utility company who is regulated by the PA Public Utility Commission. With the market still being in its infancy, the utilities require a large enrollment window to get customers switched.

What is actually switching?

Switching electricity suppliers doesn’t involve manipulating the actual lines and wires. The way you receive power remains the same. The aspect that changes is who is billing you for your electricity supply, and at what electricity price. Even the billing period remains the same, and this is the reason that the switch has to wait until your scheduled meter read date. The utility (PECO, PPL, Duquesne, etc..) currently does not have the ability to charge from one rate structure for the first half of the billing period and then another for the second half; so the consumer has to wait until their meter read date when the billing period resets.

The move to real time switches

The change from a 16 to a 11 day enrollment window is a step towards real time switch ability; choosing a new rate plan one day and having that rate take effect immediately. As the electricity choice market becomes more mature it also becomes more efficient. There has been a lot of comparisons between the Texas electric choice market to that of Pennsylvania. When Texas first became deregulated in 2002, residential customers had to wait between 1-2 months after selecting a competitive price before they would see that price on their electric bill. Sound familiar? Ten years later, and the switch date is down to seven business days for shopping customers and only three days for customers moving into a new home. In addition, the actual competitive suppliers offering Dallas energy prices have the ability to turn the power on for the customer. In contrast, Pennsylvania suppliers have to turn the request over to the local regulated utilities which slows up the competitive process. When Pennsylvania allows suppliers to turn on service for customers, customer participation should grow exponentially.

Pennsylvania business customers still with Pennsylvania Power and Light’s default service have experienced large swings in their default rates since the PPL cap rates first expired in 2010. They are not alone as many customers still on Met-Ed’s default rate and PECO’s default rate have also experienced large fluctuations in the price of their electric bill. As higher default rates force many to start shopping for competitive electricity rates it is important to understand the basics of Pennsylvania electricity deregulation and what it means for electricity choice in your area.

The electric bill is split up into two basic charges: distribution charge and supply charge. The distribution charge is a regulated charge and will not be affected by switching to a competitive electricity supplier. The distribution charge deals with the cost of maintaining the lines and wires so the electricity can be transferred from your local distribution company directly to your business. The supply charge is the deregulated charge. If your company decides to stay with PECO, Met-Ed, or PPL you will be set up on a default rate determined by a series of auctions. A company on the default rate can choose to switch to a competitive supplier anytime without being penalized. Due to a number of factors involved including the high volatility of the energy market, a company will be charged a premium if they decide to stay on the default rate.

When you start shopping for competitive electricity rates it is important to make sure the suppliers are including all components of the supply charge. The three basic components of the supply charge are energy, capacity, and transmission. These components can be further dissected to line loss, ancillary, congestion and so forth. Some suppliers will leave out a component of the supply charge to make their rate more attractive. However this charge will then be bypassed onto your electric bill as a separate charge. It is important when shopping for competitive electricity rates to let the supplier know you want an apples to apples comparison to your utilities default rate. Do not let this deter you from taking advantage of the large margin of savings. A typical commercial business in Pennsylvania still on the PECO, PPL, or Met-Ed’s rate will save an average of 15-35% per year by choosing a competitive electricity supplier.

PECO energy customers who have yet to shop for a competitive electricity rate are about to see their electric bills rise substantially. PAElectricity.org, 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: