PPL electric bills are increasingly being reduced as a result of Pennsylvania electricity choice laws that allow consumers to shop for cheap power rates. The unbundling of PP&L allows consumers to power shop from dozens of competitive electricity companies now offering cheap electricity rates in Pennsylvania. Competitive electricity companies are helping to spread the word about the customer’s ability to purchase power from sources other than PPL Electric. Ultimately, energy choice in central Pennsylvania has lead to cheaper electricity rates for those customers who take the time to shop and compare offers that are available.
The primary reason most people begin their research into competitive power prices is to save money. Cheaper electric rates, compared to the customer’s utility default rate, is the biggest indicator to the participation rate in a given energy choice market. If a customer is able to find a competitive electricity rate that is less expensive than the PPL default rate they will save money on the difference. When the PPL default rate is high shopping activity increases, and in contrast low default rates often stall power shopping.
Oddly enough, PPL Electric is not effected by whether or not their customers are fleeing off of their default rate and onto competitive rate plans. When energy choice began in Pennsylvania, PPL Electric was unbundled and transformed into a power delivery company. The revenues and profits of PPL are only determined by the distribution charges found on the PPL electric bill which happen to be regulated by the Pennsylvania Utility Commission.
The PPL default rate is determined by an auction process where competitive electricity companies bid for the right to charge a portion of the default rate paying pool of customers. PPL Electric simply collects the revenues for the default paying customers and passes the money to the competitive energy companies. In essence, this means that every PPL customer, whether they are on a competitive plan or not, are paying money to a competitive electricity company. This is an important fact as there are still a number of customers who refuse to shop for cheaper electric rates due to their loyalty to PPL Electric. Customers should know that if cheap PPL electricity rates are available, they are only hurting themselves if they decide not to take advantage and lower their monthly bills.