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PPL Switching Activity Increases Due to Default Price Hikes

Switching activity has increased in recent weeks in central Pennsylvania as Pennsylvania Power & Light (PP&L) enacted a price increase for their price to compare customer base. PP&L consumers on the price to compare rate plan are those power users who have not switched to a competitive electricity supplier offering a competitive rate plan. The price to compare is the default rate plan and includes generation and transmission charges. When a consumer switches electricity suppliers, all components of the price to compare are replaced by the competitive rate plan; competitive rate plans include both generation and transmission rates, as well as the state gross receipts tax.

People are often afraid to switch energy companies because they are worried about the changes that will take place once the switch is complete. Customers should understand that even after switching electricity suppliers they will continue to receive power from PP&L at regulated delivery charges by the Pennsylvania Utility Commission. The Utility Commission ensures that the utilities will not punish their customers for choosing a competitive supplier.

Energy choice participants can expect the same quality of service as they did before deciding to shop around and making the switch to an alternative electric supplier. PP&L will still be responsible for maintaining the lines and wires that deliver the electricity to customers who decide to shop around. Should PP&L customers experience a power outage after switching to a competitive supplier they would still contact PP&L and a customer service representative will assist them. In most instances, energy choice participants who shop for a lower rate will still receive one bill from PP&L containing both the delivery and supply charges.

Current competitive rates in PP&L are showing savings as high as 17% providing a great incentive for customers to switch off of the price to compare rate, especially during the warm summer months. The current PP&L default rate of $0.09493 will stay in effect through the end of November. Over the last 15 months the default rate has remained stable hovering between $0.089 and $0.095. Taking advantage of a competitive rate plan can provide even more savings in the coming months if the rate breaks through that $0.095 edge.


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