Electric competition is working in the PECO territory as electricity customers who have taken the time to search for low electric rates are finding big savings. It is hard to argue against 18% savings, which is what current (Summer 2011) low electric rates in PECO are yielding for customers who have switched off of default rates and onto alternative electricity offers.
Electricity choice in the PECO area is still relatively new. PECO electricity customers had their long time rate caps expire on January 1, 2011. That marked the beginning of electricity competition as alternative electricity companies entered the market in an attempt to gain market share. Savings were small at first, but with the PECO price to compare recently increasing and wholesale rates remaining low, competitive energy companies have been able to offer attractive electricity prices.
PECO energy serves about 1.6 million electricity customers in southeast Pennsylvania including the states largest city of Philadelphia. Customers can be reassured that selecting a low electric rate from a alternative supplier will not upset PECO or end the business relationship. PECO is in the business of delivering power, and they continue to charge regulated rates to all of their customers for this service. They also continue to send their customers the monthly electric bill. The generation default rate (price to compare) that customers pay with PECO is passed through PECO to competitive electricity companies who won auctions for the right to service default paying customers. Believe it or not, even if you haven’t selected a competitive supplier, you are already paying a competitive supplier through default service.
Electricity competition is working in PECO because customers can choose from a variety of electric suppliers at electricity prices that are lower than default rates. Here are the lowest rate options that we have found in PECO: