Understanding Your Electric Bill - Save Money!

Help Guide for Electric Charges:

I've run into a number of people who do not understand how their electric bill works and why they are charged different amounts.  Also, people have not switched to cheaper providers because the entire process was just too complicated.

Currently, utilities in 17 states deliver newly deregulated energy to millions of customers who are enjoying considerable savings each year on the same exact electricity as customers who have not chosen to lower their rate with a company like North American Power.

Do you remember last year when we started getting all those mailers with rates that could save you money?  Yep, that's exactly what deregulation is about.  They all wanted our business.  The only problem is that a lot of people didn't understand what was going on at the time, and many people are still using their utility's price for the electric rate.  That's a big no no!  You now have the choice to save money!

So, let my help demystify what customers are actually needing to do.
There are 2 main charges, the generation charge and the distribution charge.  See sample bill below:

You want to pay less for the generation charge / electric charge (see yellow highlight above).

The only thing that will change with your bill is that by switching to a competitor, you will be paying a lower generation charge (see yellow highlight above).  Yay!  It's a win for us!

Your local utility company will still provide the service such as reading the meter, sending your bill, and responding to emergencies.  They will still charge their fees for distribution.  The local utilities are even advertising and telling people to switch to competitors who offer lower rates.  Again, the reason is because they don't make profit on the generation of the electric.  The only profit on distributing the electric.

PECO electric rates are going up - What should you do?

The purpose of this article is to explain WHY the PECO rate increase is happening and to explain your CHOICE as a customer.

If you are currently a PECO customer, the Pennsylvania Public Utility Commission gave a final approval for PECO to raise rates on January 1, 2011.  The end result is that PECO's residential "price-to-compare" is increasing from to 9.92 cents per kwh.  Please see link to the Philadelphia Inquirer.


Why Will PECO Customers Have To Pay More?

Pennsylvania is just one of the 17 states to have deregulated their energy market.  Energy deregulation occurs, on a state-to-state basis, to introduce fair competition into the marketplace.  Over the past 70 years and even today in some states, local utilities act as monopolies, having sole control and ownership of electrical distribution in a given region.  This means that whatever the utility company is charging, you as the customer must pay.  If you are a PECO customer, then you understand that up until 2011, you had to pay what PECO charged on your bill.

In 1998, Pennsylvania placed a ‘cap’ on the PECO utility, telling the company what they had to charge customers for electricity.  At the start of 2011, that same cap will expire, and PECO will have the ability to increase the supply portion of your bill.  If you refer to your bill this is listed as a ‘Generation Charge.’

Fortunately…

You Now Have A Choice!

When the rate cap expires you will have a choice as to where you buy your electricity supply from.  Below you will see a sample bill.  The highlighted ‘Generation Charge’ will be increasing in 2011.  Take a glimpse at your own bill to confirm.

What Is Your Next Step?

If you wait until next year just to “see what happens,” it is guaranteed that you will be paying the higher rate if you choose to default and stay with PECO.  Even the president of PECO, Denis O’Brien, encourages customers to shop around for a better deal.  You may have seen this quote from Mr. O’Brien in the Philadelphia Inquirer, “With deregulation, people should be shopping for their electricity. If not, PECO becomes the default provider.”

Your next question will probably be, “Well how do I know which energy supplier to choose?”  There are a number of suppliers that are available, some of which will carry switching fees, though a few will not.  You want to make sure the company is looking out for you and offering the best rate for you the customer.

North American Power can save customers in the PECO territory up to 10% when they switch.  And the best part is:

No Contracts! – No Cost To Switch! – No Cost To Cancel!

You’ll receive the SAME bill from PECO, they’ll read your meter and they’ll still respond to all emergencies.  The only difference will be a ‘Generation Charge’ from North American Power on your bill.  Below are the rates offered to residential and small business customers.

When you decide to switch to North American Power you’ll not only get a stable variable rate that is much lower than PECO, but you’ll be confident knowing that you can always cancel at ANY time.  There is absolutely ZERO risk for you.  This company is experienced in the energy industry and can guarantee that your electric bill will cost less than PECO when you decide to make the switch.  70,000 customers in Connecticut, Maryland and Pennsylvania already have and that number is increasing daily.

If you still have questions or aren’t sure about this ‘energy deregulation thing’ I would be happy to help you.  Just leave a comment or click on the link above to learn more.

Energy Deregulation = Cheaper Electric Rates

Why am I creating a blog?  Well, the main reason is that my eyes have been opened to the world of electricity now that the energy industry has been deregulated.  This means SAVINGS for everyone!  I'll explain how.


Real Quick History Lesson:  The local utility companies used to generate the electricity with their power plants and deliver it over their infrastructure (wires, pipes, and poles).  After delivering the electric, they would read your meter, send a bill, and respond to emergencies.  But now, with just ONE change, our electric bills can be lower.  It's all due to Energy Deregulation.

Energy Deregulation basically means that new competitors are now able to come into the picture, resulting in lower electricity rates due to the competition.  The local utility companies (PP&L or PECO in Pennsylvania) were required to sell their power plants and buy electric from companies like North American Power and other licensed electric suppliers, which is then delivered to your home or business.

The local utilities (PP&L, PECO) still read the meter, send the bill, and respond to emergencies, but now you are able to pay a lower electric rate.  You don't have to change any habits.  YOU JUST PAY LESS for the same service you were getting.