PECO businesses who have not shopped for a competitive electricity rate will see their electric bills increase by just under 8% in December. The current PECO business default rate is $0.0942 per KWh, the new rate that will go into effect on December 1 and last at least through the end of February 2014 will be $0.1016 per KWh. The default rate includes charges for generation, transmission and the gross receipts tax.
The rate hike will only occur to those business consumers who are paying the commercial default rate with PECO, which means that they have elected not to shop for competitive PECO business electricity rates. Businesses who do shop for a competitive rate can prevent the rate increase by locking into a low fixed business electric rate offered by a competitive energy company who is licensed by the Pennsylvania Public Utility Commission. Competitive fixed electric rates will not only provide instant savings for small and medium Pennsylvania businesses, but it will possibly provide even more savings in the future when PECO adjusts their default rates again. For example, if a customer locks in a low 36 month fixed electric contract to start in December 2013, that rate will sustain even if PECO continues to raise their default rates over the next three years into 2016.
To date just under 50% of businesses in the PECO service area have elected to purchase their power from a competitive Pennsylvania energy company. This is slightly higher than the 46.3% statewide commercial switch percentage; the percentage of customers who have signed a contract with a competitive electricity company as opposed to staying on the local utility default rate. The local utilities continue to deliver power to the businesses within their region. As the PECO commercial electricity market continues to mature the number of shopping customers is expected to increase which will bring in more competitive electricity suppliers and result in even lower commercial electric rates for small business owners.
To compare business electric rates in the PECO service area select your electric bill size below. You will be able to compare rates based on the term (length of contract) and start date month (when you want the contract to begin).