Finding a electricity rate in the central Pennsylvania area serviced by Pennsylvania Power & Light (PPL) that is lower than the published price to compare is easier than it has even been in the past. The combination of high default rates with some of the lowest wholesale energy rates in history has allowed competitive suppliers to offer rates to PPL customers with significant discounts. On top of the large price discrepancy, online energy shopping sites make it easy for consumers to shop for the lowest PPL electricity rates being offered by licensed suppliers.
Delivering power to 1.2 million residential customers and roughly 200,000 commercial, PPL is also responsible for proving a default power generation rate for their customers who do not compare lower electricity supplier offers. The PPL price to compare rate, the default rate, is determined by a series of auctions held in advance of the rate going into effect. When wholesale energy prices drop after the auction is completed, a window of time is presented for competitive electricity suppliers to offer fixed rate contracts to customers that are below the price to compare rate. During this window customers can lock in a rate that will save them money on their PPL electric bills. Shopping activity increases the most when the competitive rate savings are higher versus the PPL price to compare rate.
In addition to immediate savings, many customers are willing to lock in their rate for up to three years in order to avoid the volatility that has come with the default price. Since 2006 the PPL default rate has varied from a low of $0.0556 to a high of $0.10448. Even though the price to compare is expected to go down in the beginning of 2016, it is anyone’s guess as to where that price will be towards the end of the year. For many, securing a low electric rate provides a peace of mind that outweighs the potential of the default rate going even lower.
Using an energy price comparison site allows customers to measure different offers against each other to make sure they are getting a fair offer. Pennsylvania electricity choice gives the consumer multiple options; the best option isn’t the same for everyone. While one person might be looking for the lowest possible PPL electric rate another might be looking for a balance between low price and long term rate security. Electricity comparison sites provide a consumer a platform to compare all of these choices and more in one easy place.