In Pennsylvania both commercial businesses and residential homes have a choice in who they select to be their electric provider.
We assist Pennsylvania businesses in a reverse auction process that allows them to achieve a cheaper electricity rate. Shopping electricity on their own does not allow for finding the cheapest offers.
Many represent themselves as an energy consulting company but are mainly just a sales outfit for one energy provider.
We take your electric usage out to multiple electric providers in Pennsylvania and have them compete to win your electricity business.
We represent you to the electric companies working for you. Special relationships with the electric companies where we end up working for them is not our business and is not helpful for our customers. Our reverse auction process sends your electric usage out to these electric companies.
- They bid on your account and compete against each other to win your business.
- We put these electricity bids in a detailed electricity proposal.
- You see the top bids in a transparent electric rate proposal.
- The bids and proposal can be refreshed and updated daily until you are ready to order electric service.
We can also have them bid on variable electricity rate products if that is what you would prefer. We can consult you on what would be your best choice in regards to fixed, variable, heat rate, natural gas based products, Pennsylvania energy market, and other choices.
Residential Electric Service
For residential electricity service in Pennsylvania the comparison and shopping process is a bit more straight forward. Simply use the electricity rate comparison chart at the top right of this page. You will need to enter your zip code to begin.
You can read about electricity rates in Pennsylvania or you could just start shopping.
All you need to do is type in your zip code and click compare to see our electricity rates.
Once you find the right electricity rates you can sign up right here on this site.
Overview of deregulation in Pennsylvania
Energy customers in Pennsylvania are among the first in the US to have the power to choose their electric company. They may also have the ability to choose their energy generations company in competitive energy areas.
Prices below consumers current utility provider can be obtained. The energy generation part takes up the most of the cost in an electricity bill. Customers are encouraged to contact competitive energy companies not regulated by the Pennsylvania Public Utility Commission (PPUC).
Customers should search for the best competitive offers.
Things the PPUC is developing to help customers with the process:
- Consumer education
- Suppliers strategies
- Pre-payment plans
- Low-income programs
- Default service pricing
The PPUC is also working on effective programs that companies can use to conserve energy more efficiently.
What are the rates caps and why should I care?
Electricity Generation Choice and Competition Act (1997) caped electric rates to ease transition to competitive markets. The Act allowed residents to have direct access to purchase energy from independent Electric Generation Suppliers (EGSs) and still have the customers energy physically delivered by Energy Distribution Companies (EDCs). The 1997 Act also allows the energy distribution companies to have “stranded costs.” Stranded expenses include infrastructure expenses made before the act was passed which could be uneconomical and unrecoverable in the competitive energy market. Once the rate caps expire, energy companies can’t get the stranded expenses back.
The transmission and distribution rates were capped at 1996 levels to allow the recover of stranded costs.
As of 2011 all utility rate cops have expired. The PPUC did extend the rates for some electricity companies, but those have expired.
List of rate caps expired electric companies and percentage of Pennsylvania ratepayers
- Citizens Energy 0.1%
- Pike County Light Company 0.1%
- Wellsboro Energy 0.1%
- UGI Power Inc 1.1%
- Pennsylvania Electricity Company 2.8%
- Metropolitan Edison Electric 9.5%
- Duquesne Light and Power Company 10.6%
- Pennsylvania Energy 10.6%
- West Penn Energy 12.7%
- PPL Electricity 24.6%
- PECO Electricity 27.8%
Now that the generation rate caps have expired what is going to happen?
The PPUC expects consumers to see an increase in their electric bills because electricity prices have risen while the rates were capped.
What about consumers default service?
The prices that EDCs offer is not the price consumers have to pay. Consumers have the power to choose a competitive EDC prices for the generation part of the bill. EGSs can offer consumers a lower price for generation sometimes. Consumer can compare EDCs rates to find the best electricity rate plan.
Your electric bill cost depends on, the price you pay now for electricity generation, the amount a consumer uses, market rats change in the future, products and services consumers sign up with like renewable energy or variable rate plans and the prices offered in your area.
Can every consumer take part and choose an electric provider?
Competitive offers may vary from one area to another, and the availability of offers is what it depends on. EGSs must offer electricity in your area for you to choose your energy provider.
You can save money finding an electric supplier.
Now that all rate caps have expired, electric customers can choose from several of the increasing numbers of EGSs. Energy customers can save 10 percent or more by switching from their default providers. Beware of energy companies enticing offers to make consumers change their services. You can compare electric rates from several top electric companies in Pennsylvania here on electric rates’ website.
Follow electric rates on Facebook and twitter to stay up-to-date with the latest information about electric companies in your area.
How Other Energy Markets Like Texas Have Faired
Texas is a success story according to some and a great big failure to others. The winter storm of 2021 sent the biggest energy Cooperative into bankruptcy and opened the door for that area to become deregulated.
The wholesale energy market was deregulated which led to disastrously high energy prices during the winter storm. Many blamed the Republican governor. Success stories in cities like Houston, Dallas, Tyler, and Wichita Falls fueled anger from conservatives who see deregulation as a good thing.
Energy choice where the government does not have full control is something many in Texas take pride in. Not holding politicians in charge accountable is what makes both conservatives and liberals upset about.
In some of the best places electric deregulation has helped Texans saw some really bad circumstances from wholesale electricity going so high.
A Dallas electricity consumer saw an electric bill come in their mail asking for $6,325 for one month of electric usage. A Houston electric service customer saw a bill from their provider that was $3,634 for 1 month of usage when it would normally only bee about $300.
A Tyler resident saw their Tyler electric rate jump without any warning during the winter storm. The energy customer only noticed once they received their electric bill and it said it was $4,619 for one month of billing. The Tyler resident has a mother in Wichita Falls Texas who told her that she had to pay $692 for her Wichita Falls electricity.