PECO Price Update February 2013

PECO Energy has published on their website that the “Price to Compare” for residential customers will increase by 10.35% on April 1, 2013. The price increase will effect all PECO electricity customers who have not shopped for an alternative electricity supplier, and are therefor receiving default service for their power generation.

Consumers who do not select a Pennsylvania competitive electric company pay a default rate through PECO Energy which is officially called the “Price to Compare”. The price to compare includes charges for generation, transmission, and the gross receipts tax (GRT). The state of Pennsylvania requires that all competitive suppliers market their rate offerings as a direct comparison to the utility published price to compare for residential customers. This is not the case for commercial electric rate offerings where competitive electric companies can offer rate products leaving off certain components of the published price to compare. Residential customers are protected from hidden fee practices. Direct comparisons to the PECO price to compare can be seen below (rates updated daily).

As of February 2013, 31% of PECO Energy residential electricity customers have participated in Pennsylvania electric choice and have bought their power from a alternative electricity company. Most of these customers are saving money versus the PECO default rate. One reason a consumer would not be saving money is if they elected to sign a variable rate agreement. Electricity companies offering variable rates can raise their prices at any given time. These companies will often advertise a low introductory variable rate, and then raise it after the initial month.

If you are looking to avoid the 10.35% rate increase on April 1st, which will take the price to compare rate from 8.69 to 9.59 cents per KWh, it is a good idea to lock in a low fixed electric rate that will guarantee savings against the PECO price to compare. Low electric rates are currently available in the PECO Energy market.

By | 2013-02-13T17:31:47+00:00 February 13th, 2013|Uncategorized|