Many people living in western Pennsylvania are unaware that Pennsylvania is an electricity choice state. This means that consumers have the ability to shop and compare electricity prices from alternative energy companies. While the Pennsylvania electricity choice laws have been in effect for several years, it has only been recently that energy companies have started to offer competitive electric rates in the Pittsburgh area.
Pittsburgh and the surrounding areas are serviced by the electric utility company Duquesne Light. Consumers in this area are able to shop for competitive electric prices and choose the electricity price plan that best fits their needs. Some customers will want to find the lowest fixed electric rate that will result in the lowest possible electric bills for a year or longer. Other customers might be willing to pay a little more for a green energy plan.
When a Pittsburgh consumer chooses to buy their electricity from a competitive supplier, Duquesne Light continues to deliver the power to them in a reliable fashion. Duquesne is now only in the business of delivering power to their customers and their money is made on the regulated distribution charges stated on the Duquesne Light electric bill. The supply charges – which include generation and transmission charges – on the bill are the charges that are open to competition. All competitive residential electric rate offers in the state of Pennsylvania include both generation and transmission charges.
Pittsburgh consumers who do not shop for competitive electricity prices pay a default rate with Duquesne Light. The default rate, called the price to compare by the Pennsylvania Public Utility Commission, is determined by competitive electricity companies participating in auctions held by Duquesne Light and regulated by the PA Public Utility Commissions. If a Pittsburgh electricity customer chooses to buy their power from a company offering a price lower than the current price to compare, that person will save money on their electric bill.
Since Duquesne Light only makes money off of regulated distribution charges and not the supply price to compare, they do not care if their customers switch electricity suppliers. Their customers remain customers no matter who they choose to buy their power supply from. Even after a switch is made, Duquesne Light continues to send the monthly electricity bill with all charges to their customers. The competitive electricity price chosen simply replaces the price to compare rates (generation and transmission).
Find low Pittsburgh electricity prices below (Prices are updated daily):