PECO Energy customers have had an up and down experience through the years with electricity choice as it pertains to savings. At times customers could easily find savings on their PECO electric bills of 15% or more versus the utility price to compare default price. Other times customers happy with their fixed electricity rate contracts were left with buyer’s remorse a few months later as they saw the price to compare drop below the fixed price they had obtained. As the PECO default price has steadily gone down over the last year, customers who are wondering if electricity choice even deserves to exist in Pennsylvania should contemplate other factors that the ability to shop for electric service provides to customers.
Perhaps the most important benefit to Pennsylvania electricity choice that PECO Energy customers receive, though often overlooked, is the price stability that pure fixed rate contracts can provide to consumers. It wasn’t until 2010 when the PECO Energy service area truly started a competitive market as decade long price tariffs were lifted presenting first time power shoppers the benefit of lowering their electric bills by simply switching off of their utility default rate and onto a competitive supplier’s rate. Since that time the PECO price to compare has been a roller coaster for residential customers.
In just the last few years the default rate in Philadelphia has been as high as $0.0977 cents and as low as $0.07099. This represents a 37.62% swing from the lowest to highest rate during this time period. Many electricity customers would rather level out these price swings by securing a low fixed electricity rate with a competitive supplier instead of riding the ups and downs of the default pricing. While competitive pricing doesn’t always guarantee savings versus the default price, customers can better budget their energy expenses by knowing exactly what rate they will be paying each month.
While the PECO price to compare is relatively low right now, there is no guarantee that it will remain low. When the price to compare finally does start going up, so to will competitive rates. Both the PECO default rate and competitive rates are determined by competitive suppliers purchasing electricity on the wholesale market. This causes both sets of prices to move in the same direction in the long term, though the competitive suppliers can often react to changes in the wholesale market quicker then PECO. Even though competitive prices might not offer attractive savings to PECO customers versus the default price, they do currently provide a great opportunity for customers to lock in low long term fixed rates that will protect them from potential price hikes.
Below are a list of fixed rate offers from Pennsylvania electricity suppliers who are licensed by the state. Fixed rates will not change during the term of the contract.