PPL commercial

Small businesses in central Pennsylvania serviced by PP&L who are still on the utility default “price to compare” rate have an opportunity to reduce their electric bill through the Pennsylvania electricity choice program. Electricity choice allows consumers to shop the market and purchase their power supply from an alternative supplier who may be able to offer a price lower than the utility supply rate. As a result of a recent utility default rate increase combined with a steady low wholesale energy market, savings are available for PPL small businesses.

PPL customers have experienced a true competitive market since the beginning of 2010 when decade long low capped rates with the utilities expired. The rate expirations caused alternative suppliers to flood the market as they were able to offer competitive prices that yielded quick savings for customers on their PPL electric bills. As is the case with most new electricity markets, commercial and industrial clients were quicker to act on the benefits of the new Pennsylvania electricity market structures as opposed to the residential customer pool, who were less familiar with the new laws. However, after seven years of electricity choice in Pennsylvania, both customer and energy supplier participation has grown.

Among the seven largest electricity utilities in Pennsylvania, PPL leads in customer participation rate for both residential and business customers. As of December 2016 the utility has 56.6% of their commercial customers purchasing power from a competitive electricity supplier. The commercial customers who have shopped and entered into a contract with a supplier account for 89.3% of the commercial usage amount. The largest users have been the quickest to adopt and learn about the benefits of electricity choice. However, small businesses can experience the same savings percentage if they take advantage and shop for a lower commercial electricity price to replace the PPL price to compare rate for the commercial customer class.

Competitive suppliers are able to offer lower prices to PPL businesses when the wholesale electricity market yields prices that are lower than the default rate. While the default rate is determined through an auction process months before the time they actually go into effect, competitive suppliers can offer customers fixed rate contracts based on wholesale prices at the current level. Over the last seven years there have been times when suppliers could not offer rates lower than the utility default rate, however for the majority of the time savings have been available. When savings are available it presents an easy and stress free way for business owners to lower one of their largest operating costs.

Competitive suppliers offer different fixed electric prices to customers based on their power consumption. Below customers can choose the amount of their monthly electric bill to see different fixed electric prices available.



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: