Over the last several years Pennsylvania has been opening up the various electricity markets to competition with alternate suppliers. A little background on this is explained in an article on pennlive.com: In an effort to move from nine entrenched regional monopolies to a competitive electricity market, lawmakers implemented a transition period that included rate caps for consumers and recovery of "stranded costs" for providers, ostensibly to pay for previous infrastructure investments.
Rate caps were instituted to protect customers from unpredictable price fluctuations during the transition period.
In return for the loss of their monopoly status, utilities were allowed to collect a surcharge above the price of electricity, otherwise known as stranded costs. Rate caps already have expired for six utilities statewide, and the transition period will end for all state utilities in 2011 -- ending the rate caps and the collection of stranded costs.
Well, as most of us have realized by now, its 2011 and Peco’s rate cap has officially ended as of January 1st. Since then Peco has lost more than 10% of their customers and continues at a whooping rate of about 20,000 customers per week, according to an article on philly.com. But don’t worry, Peco won’t be panhandling anytime soon. The utility company still collects on the distribution of the electricity; they are just losing the portion that generates the power through their wires.
Residents and businesses now have the option to get better pricing on basic the basic necessities. Consumers are realizing that with the 20 plus new suppliers in the market it’s worth the time and research to switch for a cost reduction in their electricity bills.
So what information do you need to understand to source your electricity supply? Your bill should indicate the price-to-compare which tells you what you are currently paying. Compare this to what the alternate suppliers would charge and go with the most savings. You also want to compare variable versus fixed rates and determine what will work best for you in the long run. If you want to further understand how all of this works check out this very informational blog: "Regulatory Rundown Deregulation of PPL"
For all you Pennsylvania businesses out there, We can help in sourcing your electricity supply!
Rate caps were instituted to protect customers from unpredictable price fluctuations during the transition period.
In return for the loss of their monopoly status, utilities were allowed to collect a surcharge above the price of electricity, otherwise known as stranded costs. Rate caps already have expired for six utilities statewide, and the transition period will end for all state utilities in 2011 -- ending the rate caps and the collection of stranded costs.
Well, as most of us have realized by now, its 2011 and Peco’s rate cap has officially ended as of January 1st. Since then Peco has lost more than 10% of their customers and continues at a whooping rate of about 20,000 customers per week, according to an article on philly.com. But don’t worry, Peco won’t be panhandling anytime soon. The utility company still collects on the distribution of the electricity; they are just losing the portion that generates the power through their wires.
Residents and businesses now have the option to get better pricing on basic the basic necessities. Consumers are realizing that with the 20 plus new suppliers in the market it’s worth the time and research to switch for a cost reduction in their electricity bills.
So what information do you need to understand to source your electricity supply? Your bill should indicate the price-to-compare which tells you what you are currently paying. Compare this to what the alternate suppliers would charge and go with the most savings. You also want to compare variable versus fixed rates and determine what will work best for you in the long run. If you want to further understand how all of this works check out this very informational blog: "Regulatory Rundown Deregulation of PPL"
For all you Pennsylvania businesses out there, We can help in sourcing your electricity supply!
I remember when this happened to the phone companies- it's about time. People must have choices - now if it's bad or good - thats for another blog.
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