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.