Finally

November 23, 2010

It’s been a long wait.

It has been well publicized, that in January 2011, PECO will lift the rate caps on electric prices and will be entering the deregulated market.

Just what does this mean for PECO customers?

As part of deregulation, local providers will no longer own their own power plants to generate electric. Their job is to deliver electricity to the end user, the client.

They are able to sell the supply, which they buy through an auction process, to anyone who chooses to stay with the local provider at a default price, which could be higher.

PECO is actually encouraging larger users to shop their rates with 3rd party providers. 

If your business is currently spending a minimum of $5000 a month on electricity, Hutchinson Business Solutions will now be able to help you buy your electric supply from a 3rd party supplier.

The new rates PECO will be proposing as of Jan 2011 will be tiered for certain rate classes. For certain customers the first tier is for the first 80 hours of usage per month, and is the highest rate. This can range from $0.16 cent per kwh to $0.17 cents per kwh.

The prices will be scaled down as your usages progress. The more electric you use, the more the price goes down.

PECO is only publishing these rates for 90 days. That means that as of April 1st, new prices will appear based on such potential factors as:

                                                  – How PECO needs to true-up their costs

                                                  – Current market values at that time.

 Another factor being added into the PECO price to compare is RMR (Reliability Must Run). This is a pass thru cost from the local provider for system reliability.

This means having the ability to generate electric when it is needed. Although this cost has not been defined, it could be in the $0.001 mil to $0.003 mil ranges (3 mil ie:3 tenths of a penny).

The bottom line, should you choose to stay with PECO, you could be paying higher default rates as of Jan 2011.

Each account is unique, based on their demand and usage patterns. For smaller to midsize accounts; we could see electric supply prices in the $.010 cents per kwh to $.13 cent range as a default price from PECO.

We have been working with clients in the PECO territory this year and have found significant opportunities in the deregulated electric market.

HBS clients are finding savings ranging from 10% to 20% by purchasing electric thru deregulated 3rd party providers.

Hutchinson Business Solutions (HBS) has been providing independent, deregulated energy solutions for over 10 years.

There is no upfront fee.

Our strategic partnerships allow us to represent all the major providers currently selling energy in deregulated states.

Should you like to know more about this topic, email george@hbsadvantage.com

or call 856-857-1230 

Visit s on the web www.hutchinsonbusinesssolutions.com

4 Responses to “Finally”

  1. one can argue that it can go both ways

  2. Paul said

    What most PECO customers that have not made the choice already will probably paying the higher PECO rate in Jan since it takes almost a month for PECO to switch you over. All you PECO customers need to be switching over soon if not now.

    Great Post by the way.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: