If your business is located in New Jersey or Pennsylvania you can expect to pay higher electricity prices in 2013. PJM, the regional transmission organization that coordinates the movement of wholesale electricity in most of the northeast, has announced that there will be a significant increase in both transmission and capacity charges. For some customers the transmission cost will increase 51% beginning in January while the capacity charge can go up as much as 55% starting from mid 2013 to 2014. Many business electricity customers serviced by the utility companies PPL, PECO, Met-Ed, PSEG, or JCPL will be affected by these increases.
Although this will affect all electricity suppliers across the board, the businesses that will pay the highest cost for electricity will be those who opt to stay on their local utilities default rate. Since the expiration of the cap rates, the margin of savings between Pennsylvania default rates and the competitive electricity market has consistently remained between 10-25%. If you are still with PECO Energy, PPL, or Met-Ed right now is the time to consider locking in a fixed rate with a competitive electricity supplier.
New Jersey business electricity consumers will be facing the same scenario as those in Pennsylvania. The tariff rates in JCPL and PSEG have remained higher than the competitive electricity market for the past few years. Although the increase in capacity and transmission charges will affect both the tariff rates and competitive electricity market the margin of savings between the two is expected to remain the same. If you want to maximize savings and offset these higher regulated charges that will take place this year a competitive electricity supplier can help you do just that by locking in a low fixed commercial electric rate.