As of February 2014, one-third of PECO Energy’s residential electricity customers are participating in the Pennsylvania Electricity Choice program and buying their power from a competitive electricity supplier. Through the Pennsylvania choice laws consumers receiving their power from PECO Energy have the ability to shop for competitive electric rates the same way they would shop for auto insurance or cell phone carriers. Competition has allowed many consumers to lower their monthly bills by finding PECO electricity rates offered by alternative power companies.
Customers who do not shop for lower prices pay a default rate with PECO Energy for their generation and transmission fees. The default rate changes every three months, leaving customers open to rate hikes during the higher energy usage winter and summer months. Alternatively, customers participating in Pennsylvania electricity choice can lock in a fixed rate for up to three years and not only save money right away versus the current default rate, but protect themselves from the potential of future price hikes. While some customers are unwilling to lock in fixed rate contracts because they don’t want to be stuck in a contract if the PECO default rate drops, more people are seeing that a fixed rate offering the stability of a low monthly electric bill out weights the potential of paying slightly higher fees for a few months in the default rate were to drop.
Despite a recent announcement that the PECO default rate will decrease on March 1 from the current level, competitive rates are still below the new default rate. There are many customers who look at he PECO default rate going down as a sign that it will continue to do so. In reality there is no evidence that the trend will continue and is just as likely, if not more, that the default rates will increase in the summer based on historic energy data. Locking in a low competitive electric rate will save customers money now and provide price stability for the next year or more.
Compare PECO electricity rates from the list below offered by suppliers approved by the Pennsylvania Public Utility Commission.