More and more energy customers in Philadelphia are learning that they now have choices when it comes to who provides them with electricity. Energy shopping is up throughout Pennsylvania, but specifically the PECO energy region, which includes the city of Philadelphia, has seen a large increase in customers switching their electricity supplier.
Prior to 2011, people living in Philadelphia were forced to use PECO as their energy supplier even though Pennsylvania officially deregulated the energy market several years earlier. It wasn’t until the beginning of 2011 when PECO lifted price caps that had been in effect for more than a decade that true competition began. The lifting of the price caps allowed competitive electricity companies to enter the market and start offering competitive electric rates to Philadelphia customers.
Philadelphia electricity users who have not shopped for the best energy rates pay a generation default rate with PECO energy. The default rates are a result of competitive wholesale electricity companies bidding in an auction, regulated by the Pennsylania Public Utility Commission, for the right to service default paying customers. Even though default customers pay the generation rates to PECO, that money gets transferred to the winning bidders. Customers who have not shopped for competitive electricity are still buying their power from alternative energy companies.
The competitive electricity market in Pennsylvania has changed the role of PECO Energy from a regulated electricity generator and delivery company to just a regulated electricity delivery company. The business of PECO Energy in Philadelphia is only to deliver the power and maintain the transmission and distribution lines and wires. Their revenues are derived from these delivery charges that remain regulated by the state of Pennsylvania. PECO also continues to deliver the monthly electric bill to residential customers even after an alternative energy company is chosen.
If you are looking for the best energy rates in Philadelphia, and your number one concern is saving money or paying the least amount of money on your electric bill, then your only concern should be finding the cheapest electricity price. Other factors that might play a role are length of contract, fixed or variable pricing, termination fees, green energy sources, and customer service reputation.
The following are a list of the best energy rates in Philadelphia: