By Andrew Maykuth

Inquirer Staff Writer

Pennsylvania electricity customers are skeptical they can save much by
shopping for power.

Although 88 percent of customers say they are aware they can switch to
alternative suppliers, only 45 percent have shopped, according to a statewide
survey conducted by Terry Madonna Opinion Research.

Twenty-three percent of residential customers statewide have switched,
according to the Pennsylvania Public Utility Commission. About 1.4 million
customers have switched.

Madonna and several electricity suppliers told the PUC on Thursday that
nearly a year after Pennsylvania’s retail utility deregulation went into full
effect, the public remains wary of shopping.

“There are a fair number of people who did not look into changing an electric
supplier because they didn’t believe there would be long-term savings in it,”
said Madonna, director of the Center for Politics and Public Affairs at Franklin
and Marshall College in Lancaster.

The poll results were presented Thursday at a PUC hearing on competition.

The surveys found that price was the main concern driving customers to
switch, but many said the perceived savings were insufficient to make them
switch.

Suppliers said some residential customers have recorded savings up to $300 a
year.

Madonna, who conducted his telephone survey of 801 customers in September on
behalf of Constellation Energy, said 78 percent said they would consider
switching if they could save 10 percent on their generation charge.

Many customers who declined to shop said they were happy with their current
supplier regardless of the cost.

Madonna’s findings were echoed by an Internet survey of 450 customers
conducted by AlphaBuyer, a Paoli group- buyer that markets online.

Forty percent of the customers said the savings were not worth it, said Kevin
McCloskey, AlphaBuyer’s chief operating officer. About 24 percent said shopping
was too confusing or the choices overwhelming. About 15 percent said switching
was too risky or that it was a “scam.”

Under Pennsylvania’s Electric Choice law, customers can choose a company that
markets the power. Billing is still conducted by the incumbent utility company,
which collects a fee for distributing the power.

Customers who don’t switch are still supplied by the utility at a default
rate.

Only 18 percent of customers had visited the PUC’s website for choosing a
supplier. PUC members said more customer education was needed.

“It’s perplexing to us with all the tools being made available to customers
we only see 20 percent of the residential customers shopping,” said Robert F.
Powelson, PUC chairman.

Our Perspective:

HBS has been dealing in the deregulated energy market for over 10 years. I have always been suspect of the proposed residential savings in this market.  Most of the time you are offered a floating rate that may offer minimal savings.

The opposite is true in the commercial market. There are providers offering fixed price alternatives that offer a great opportunity for savings. HBS has found great success in the PA commercial deregulated market. We represent all the major providers selling electric in the PA market.

There is no upfront cost. Deregulated savings in the energy market has been a welcomed windfall for any business in both the New Jersey and Peennsylvania market who willing to look at the opportunity.

 

Read more: http://www.philly.com/philly/business/20111111_Most_in_Pa__avoid_shopping_for_electricity_supplier.html#ixzz1ddcYbDS5

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Online Auctions

March 31, 2011

The deregulated energy market is causing a big buzz in this area. In the spring of 2010, NJ opened up deregulated opportunities to the residential market.

In January 2011, PA opened up the Peco territory to deregulation after a 5 year moratorium.

As the result, the market has been flooded with companies and individuals trying to capitalize on these opportunities.

Online Auction opportunities are now available. All you have to do is type buying deregulated energy online into your Google page and you will have multiple selections.

Also many companies have been promoting a Multi-level marketing approach to set up a grass roots effort in hopes of gaining penetration in the market.

.

As more consumers have grown more comfortable with on line purchasing, it seemed natural that this avenue would be an effective marketing option.

The only problem we see is that when buying energy in the deregulated market, you are dealing with a commodity. This puts a whole new spin on the opportunity.

This week, we would like to take a look at on line auctions.

Below is a plus-minus list we have developed to help you make an objective decision about purchasing energy on line versus using an independent broker.

On Line Auctions:

Plus

  • Feel like you are getting a good deal by participating in an ecommerce transaction
  • Potentially lower price by doing the ecommerce transaction 
  • Potentially easier transaction since there is limited contact with 3rd party energy suppliers
  • Electricity is a commodity and customer’s management feels this is best process for doing transaction

 

Minus

  • Can be more challenging to negotiate terms & conditions  
  • Potentially less leverage with suppliers since there is no personal interaction
  • Difficult determining what factors are included in the price.
    •  Is it fully loaded? (contains 7% loss transmission and sales tax)
    •  Is it a fixed rate or variable rate?
  • How do you know when is the best time to buy
  • Online auctioneers are brokers approaching the same providers we would be using.
  • Many on line auction companies do not have any information on their website regarding the management of the company

 

Dealing with an Independent Broker (Hutchinson Business Solutions)

 

Plus   

  • We represent all the major 3rd party providers selling energy in deregulated sates
  • We offer personal service, individually marketing your account to these providers
  • We monitor market fluctuations and discuss timing with our clients
  • We offer fixed price solutions (Other options available for large volume users)
  • We make sure all prices received are fully loaded and are an apples to apples comparison to your local utility’s price to compare
  • Due to our business relationships, we bring leverage to the deal
  • We assist with customer’s legal team in negotiating the business terms of the contract as they may apply
  • We provide options, defining the best terms and conditions and service the account throughout the term of the contract, addressing issues as they arise
  • We have been advising customer risk management strategies in the deregulated markets for over 10 years.
  • Opportunity to outsource many of the tasks involved with the energy procurement process while retaining the control and final decisions on any potential transaction

 

Minus

  • The energy market is in a growth mode, many new faces and the information is sketchy.
  • You must be sure to deal with a reputable company who will represent your best interest
  • Many of the new companies are offering variable rates

 

At first glance you may think this overview is biased.

Yes, we are an independent broker. We take pride in the value we have brought to our clients in the deregulated market.

We have just seen too much abuse. The deregulated energy market is an unknown.

We take time to explain how the market works with each client. We want you to understand this concept and feel comfortable with your purchase.

Each account is unique. There is no one size fits all solution.

There are great opportunities for savings in the business market.

Know the facts!!!!

Look to ask the right questions.

Let HBS be your eyes and ears….

While you continue to do what you do best….

Run your day to day business.

To learn more about deregulated energy opportunitiews for your business email george@hbsadvantage.com

Visit us on the web www.hutchinsonbusinesssolutions.com

Note: With the current deregulated market opportunities now being presented to many business that qualify, the market has been inundated with new sales personnel. I found this article provides on objective overview of questions you should ask and details you should know before making a decision.

There are many companies offering variable electric rates. I would not recommend this solution at this time.

With natural gas prices being the lowest they have been in the last 3 or 4 years, there are great opportunities to lock into a fixed price electric contract for a 1 or 2 year period.

By Carl Shaw

With the deregulation of energy in many parts of the US, competition is now allowed between energy companies to provide electricity at discounted rates directly to their customers. These Energy Service Provider Companies (ESCOs) are licensed by individual states and are required to adhere to the applicable regulatory guidelines set by the Public Service Commissions (PSC) or Public Utility Commission (PUC).  Customers (end-users) also have the opportunity to work with electricity brokers or consultants who can compare different offers and provide additional services to help manage your monthly energy spending and costs.

If you are a business spending a minimum of $3000 a month  on your electric or natural gas bill, you may qualify to choose your electric or natural gas supplier in deregulated markets, which could create savings opportunities. Companies that can control or manage their electric consumption to use more electricity in the off-peak hours will find the greatest opportunity for savings. In deregulated markets, you now have a choice and can choose lower energy rates without any risk or local service change.

Your local energy service providers buy natural gas and electricity on the open market at wholesale prices based on the current market conditions and then bill their customers at increased rates to include margins and/or service fees.

Independent Deregulated brokers can put your company in a competitive position by leveraging extensive buying power to help you develop energy supply procurement programs. They can conduct an unbiased rate and tariff analyses that may result in substantial savings to you. 

Due to the current economic conditions and the complications deregulation has caused there are many new energy advisory companies popping up, so be sure to know all the facts before making any decision.

When choosing a qualified utility tariff analysis & rate optimization firm to represent you, you should be aware of a few things:

First, be sure that the price you are quoted from your local provider includes all charges. Should you be talking to a consultant or broker, make sure the price is “fully loaded” meaning, does it include the 7% loss allowance (to deliver 100,000 kWh of electric, the providers must actually send 107,000 kWh, for there is a 7% loss in transmission)? Also does it include the local sales tax?

In PA, you must also ask if the price includes GRT (gross receipt tax) and RMR (reliabilty must run). RMR is a pass thru charge from the provider that allows them to meet peak demand periods when they must use additional resources to meet this demand. This is normally found during the summer months.

All these important components should be included in the quote from your deregulated provider to make an accurate comparison. These components are included in your price to compare from your local provider.  Often, companies will provide a low end quote without including sales tax and a load allowance. Be sure you are comparing apples to apples. Often when these figures are included, their real quote is much higher.

Does the company providing your quote have an Energy Information Management System in place, to make sure that you are getting the best available rate?

Are they shopping your account to more than 1 provider. Each provider has a sweet spot (a market they are most competitive in). An independent broker who knows the market will be able to identify these providers and work to get the best price.

Information is power. Knowing what questions to ask will save you time and money.

There are opportunities to save from 10% to 25% in the deregulated electric market depending on your usage patterns.

When making a final decision, know that you are dealing with a commodity and timing is everything. Market fluctuations may happen on a daily basis.

About Deregulation

January 27, 2011

As presented on PSEG website

Before Deregulation 

Prior to New Jersey’s restructuring, PSE&G was responsible for generating electricity, transmitting the power to all regions of their service territory, distributing the power to the individual homes and businesses, and billing and service issues.  In addition, they were also responsible for all repairs to the electric lines and equipment.

After Deregulation

As a result of the New Jersey Energy Choice Program, the different responsibilities of the utilities were “unbundled” and the power industry was separated into four divisions: generation, transmission, and distribution, and energy services. The generation sector has been deregulated and, as a result, utilities are no longer the sole producers of electricity. The transmission and distribution sectors remain subject to regulation – either by the federal government or the New Jersey Board of Public Utilities.   No matter which electricity supplier you choose, PSE&G will continue to service the transmission and distribution sectors of your electricity.

Competition is allowed between companies to provide power at discounted rates and superb customer service directly to customers. These companies are licensed by the state of New Jersey.  You also have the opportunity to work with an electricity broker or consultant who can compare different offers and provide additional services to help manage your energy spending.

In most cases, PSE&G will continue to send you your utility bill.  So the only thing that changes if you shop for a better rate is that better rate.

Out Perspective

Deregulation has presented a great opportunity for savings in the business sector. If you are a company spending a minimum of $5000 a month on electric and you are not taking advantage of this opportunity, feel free to give us a call and we will present an overview. 856-857-1230

Or, if you would like to know more about deregulation opportunities for your business email george@hbsadvantage.com

HBS has been providing independent deregulated energy management solution to our business clients for over 10 years. We represent all the major deregulated energy providers selling energy in deregulated states.

Visit us on the web www.hutchinsonbusinesssolutions.com

Hutchinson Business Solutions (HBS) has been providing deregulated energy management solutions to our business clients for over 10years.

Although we currently do not service the residential markets in deregulated states, I found it prudent to offer some insight to the many residential clients now seeking savings in the deregulated electric market.

Since New Jersey just introduced the opportunity to their residents in the spring of 2010 and Pennsylvania in January 2011, many people have jumped on the band wagon selling electric.

We get several calls daily from our clients asking questions about saving for their home electric.

The first thing that I caution them is to make sure the price that is being presented is fully loaded and contains all the factors that are included to make a price to compare analysis.

Does it include a 7% loss allowance (to deliver 100 kw of electric you must send 107 kw, for there is a 7% line loss in the delivery of the electricity)  

Does it include 7% sales tax. (PA residents 6.46% gross receipt tax)

These factors are included in the PSEG and AC Electric price to compare.

The second thing we caution clients to look for is a fixed price.

Natural gas prices are the lowest they have been in the last 3 to 4 years. Although they have spiked recently due to the winter cold, prices are still very attractive.

Thirty % (30%) of the electric generated in the US is made with natural gas. Because of this, natural gas prices serves as a strong market indicator used for electric market prices.

By choosing a fixed price, you can lock your position for a 1 or 2 year period.

There are many companies offering variable options or 4 month fixed pricing and variable pricing for the remainder of the contract. I do not feel comfortable stating that this presents a good opportunity for savings at this time.

Variable pricing does not lock your position and leaves the pricing upto the whim of the market, therefore this is a more riskier decision at this time.

Proceed with caution and make sure to get all the facts before choosing a deregulated residential electric provider.

Visit us on the web www.hutchinsonbusinesssolutions.com 

As presented by Public Power (An overview of the deregulated electric in the residential market)

Many of those that are considering switching over are a little confused about what is actually happening.

You are not switching your gas & electric company, you are only switching service providers.

What this means,for example:

If PSEG is your current Gas & Electric Company. They will remain your Utility company. They will still service your home if you have a problem or power outage etc. You will still receive and pay your Bill thru PSEG. What you are doing is simply switching where your Gas and Electric is coming from.  In this case you will be asking PSEG to simply obtain your Gas & Electric from Public Power,LLC instead of their current provider. Currently Public Power per Kilowatt rate is cheaper than PSEG ‘s provider. You can check on your rate by looking at your BILL and looking up the kWh rate.

Then go to  https://ppandu.com/historical_rates.php to check Public Powers’s historical rates for other areas they currently service. Though rates vary from month to month, you will find they have been historically lower then PSEG, Con Ed and many other NY & NJ utility providers.

Actual electric rates for 2009 in January were 11.2 for Public Power and Utility (PP&U), Feb 2010, 9.999*, 11.051*, 11.568*. Jan 2010, 9.999*, 11.051*, 11.568*

PSEG Sept 2010 Average Residential rate is 12.00 per kWh

Currently if you are using under 600 kWh per month you are paying about 11.46 per kWh. If you never exceed that all year then your rate will stay at about 11.46.

 But as soon as you go over 600 Kwh June thru Sept,that part of your bill is jacked up to about 12.34 per kwh. So on average if you are using from 601 kWh and more during the year, the blended average rate is about 12.00 per kwh.  Understand above ONLY reflects the cost of electricity, not the PSEG delivery charges etc. The rates we are concerned with are just the BGS Energy charges, which on your bill is the “Rate to Compare” when you are considering a 3rd party supplier for your electric such as Public Power.

SEE BELOW THE PSEG RATE(TARRIF) Chart (approved June 2010) Note the highlighted rates

PUBLIC SERVICE ELECTRIC AND GAS

COMPANY           Twenty-Eighth

Revised Sheet No. 67 Superseding     

B.P.U.N.J. No. 14 ELECTRIC                                             Twenty-Seventh Revised Sheet No. 67  

BASIC GENERATION SERVICE – FIXED PRICING (BGS-FP)
ELECTRIC SUPPLY CHARGES 

APPLICABLE TO: 

Default electric supply service for Rate Schedules RS, RSP, RHS, RLM, WH, WHS, HS, BPL, BPL­POF, PSAL, GLP and LPL-Secondary (less than 1,000 kilowatts). 

BGS ENERGY CHARGES: 

Applicable to Rate Schedules RS, RHS, RLM, WH, WHS, HS, BPL, BPL-POF and PSAL           Charges per kilowatthour: 

Rate 

Schedule 

For usage in each of the 

months of 

October through May 

For usage in each of the 

months of 

June through September 

 

    Charges

 

   Charges 

Charges  Including SUT  Charges  Including SUT 
RS –first 600 kWh  11.4627 ¢  12.2651 ¢  11.4356 ¢  12.2361 ¢ 
RS – in excess of 600 kWh  11.4627 ¢  12.2651 ¢  12.3477 ¢  13.2120 ¢ 
RHS – first 600 kWh  9.8139 ¢  10.5009 ¢  10.9809 ¢  11.7496 ¢ 
RHS – in excess of 600 kWh  9.8139 ¢  10.5009 ¢  12.2005 ¢  13.0545 ¢ 
RLM On-Peak  16.1526 ¢  17.2833 ¢  15.6936 ¢  16.7922 ¢ 
RLM Off-Peak  7.4633 ¢  7.9857 ¢  7.8736 ¢  8.4248 ¢ 
WH  9.5068 ¢  10.1723 ¢  10.6903 ¢  11.4386 ¢ 
WHS  7.7482  8.2906 ¢  8.9246 ¢  9.5493 
HS  10.3708 ¢  11.0968 ¢  13.9608 ¢  14.9381 
BPL  7.3379  7.8516 ¢  7.6450 ¢  8.1802 ¢ 
BPL-POF  7.3379 ¢  7.8516 ¢  7.6450 ¢  8.1802 ¢ 
PSAL  7.3379 ¢  7.8516 ¢  7.6450 ¢  8.1802 ¢ 

 

The above Basic Generation Service Energy Charges reflect costs for Energy, Generation Capacity, Transmission, and Ancillary Services (including PJM Interconnection, L.L.C. (PJM)  Administrative Charges). The portion of these charges related to Network Integration Transmission Service, including the PJM Seams Elimination Cost Assignment Charges, the PJM Reliability Must Run Charge and PJM Transmission Enhancement Charges may be changed from time to time on the effective date of such change to the PJM rate for these charges as approved by the Federal Energy Regulatory Commission (FERC). 

Kilowatt threshold noted above is based upon the customer’s Peak Load Share of the overall summer peak load assigned to Public Service by the Pennsylvania-New Jersey-Maryland Office of the Interconnection (PJM). See Section 9.1, Measurement of Electric Service, of the Standard Terms and Conditions of this Tariff. 

Note: Hutchinson Business Solutions has been providing independent deregulated energy management solutions for corporate clients for over 10 years. Although we do not currently provide these services to the residential market, we felt that it is important to make this information available to the general public, since many residential customers are now looking at this opportunity.

Date of Issue: May 20, 2010-Effective: June 1, 2010
Issued by FRANCES I. SUNDHEIM, Vice President and Corporate Rate Counsel
80 Park Plaza, Newark, New Jersey 07102
Filed pursuant to Order of Board of Public Utilities dated March 1, 2010
in Docket No. E009050351

 
Posted on Sun, Jan. 16, 2011

By Andrew Maykuth

Inquirer Staff Writer

Pearl Rosenbloom and her neighbors in South Jersey have been getting lots of sales calls lately encouraging them to switch from Public Service Electric & Gas Co. to alternative power suppliers.

The pitches are often long on enthusiasm, but short on facts.

“When you ask for details, they just say, ‘You’re going to save money!’ ” Rosenbloom said.

The Burlington County resident looks longingly across the Delaware River, where Peco Energy Co. customers are rapidly moving into a market-rate environment.

Pennsylvania residential customers have access to a wealth of comparative information on rates assembled by the Public Utility Commission or the state Office of the Consumer Advocate.

But in New Jersey, where suppliers are offering residential discounts of 12 percent and more, consumers are largely on their own when it comes to assessing the data.

“We don’t know what to do,” Rosenbloom said.

J. Gregory Reinert, the communications director of the New Jersey Board of Public Utilities, said there were too many offerings for Garden State regulators to manage the data on behalf of customers.

“We do not provide comparison data of third-party suppliers or utilities,” he said.

“Customers need to do comparison shopping by either calling or visiting the websites of each company to review the tariffs or promotions, and make their own comparisons and decisions,” Reinert said.

New Jersey’s approach stands in contrast to the model states lauded in a recent industry study of electricity deregulation. Advocates of market rates say competition helps suppress electrical costs by encouraging more efficiency and conservation.

Nat Treadway, the managing director of a Houston firm that conducts an annual assessment of restructured markets, in December singled out Pennsylvania’s system for praise.

In most deregulated states, including New Jersey and Pennsylvania, customers are free to choose the company that generates their electricity, which makes up the biggest part of their bill. Traditional utilities, such as PSE&G and Peco, are solely distributors of power and do not make money off power generation – even on the electricity they buy on behalf of customers who do not switch.

Treadway, managing partner of the Distributed Energy Financial Group, said the best markets for encouraging electrical choice were in Texas and New York.

By contrast, Treadway called New Jersey’s restructured residential market “marginal.”

Ronald M. Cerniglia, director of governmental and regulator affairs for Direct Energy Services L.L.C., a large electricity marketer operating in several states, called New Jersey’s marketplace “suboptimal.”

He said the best competitive markets set up rules that encourage alternative suppliers to do business while still providing traditional consumer protections.

Regulators in thriving markets also make efforts to educate customers. One way is to maintain websites with neutral cost comparisons.

The Pennsylvania PUC’s papowerswitch.com lists most current suppliers, and some of their offerings. The Texas and New York utility commissions operate sophisticated websites that allow consumers to search for competitive offers by zip code: powertochoose.org and newyorkpowertochoose.com.

The New Jersey BPU rolled out a website for power-shopping after it opened electricity markets to competition in 1999, part of a $13.5 million promotional effort.

But New Jersey’s rates were still rigidly structured, and residential suppliers stayed away. The BPU’s website was abandoned in 2003 and the domain name was taken over by a Spanish pornography site, according to the Newark Star-Ledger.

Only in the last year have alternative suppliers planted their flags in New Jersey’s residential markets. As of November, 98,700 customers out of New Jersey’s 3.3 million households had switched to alternative suppliers, up from a mere 213 households in 2009.

By comparison, Peco Energy Co. says 96,000 of its residential customers have switched suppliers, most in the two weeks since rate caps were lifted Jan. 1.

The BPU provides the names of suppliers on its website, but the list appears to be out of date. South Jersey Energy Co. is listed as a residential electrical supplier even though it has been “out of residential for a number of years,” according to Joanne Brigandi, a company spokeswoman.

And in some cases, it is difficult for New Jersey customers to locate even the most basic information from which they can make an informed choice.

PSE&G’s basic-generation service – the price to compare – is listed as 11.5 cents per kilowatt-hour on some alternative suppliers’ websites.

PSE&G spokeswoman Karen A. Johnson confirmed Friday that the utility’s price to compare is 11.5 cents per kilowatt-hour.

Several suppliers are offering discounts below either price. They are listed above.

Our Perspective:

Hutchinson Business Solutions has been providing deregulated energy management solutions to our business clients for over 10years. Although we currently do not serve the residential markets in deregulated states, I found it prudent to offer some insight to the many residential clients now seeking savings in the deregulated electric market.

Since NewJersey just introduced the opportunity to their residents in the spring of 2010 and Pennsylvania in January 2011, many people have jumped on the band wagon selling electric. 

We get several calls daily from 0ur clients asking questions about saving for their home electric. The first thing that I caution them is to make sure the price that is being presnted is fully loaded and contains all the factors that are included to make a cost to compare analysis. Does it include a 7% loss allowance (to deliver 100 kw of electric you must send 107 kw for there is a 7% is line loss in the delivery of the electricity)  and 7% sales tax. These factors are included in the PSEG and AC Electric price to compare.

The second thing we caution clients to look for is a fixed price. Natural gas prices are the lowest they have been in the last 3 to 4 years. Although they have spiked recently due to the winter cold, prices are still very attractive. Thirty % (30%) of the electric generated in the US is made with natural gas. Because of this, natural gas prices serve as a stong indicator used for electric market prices. By choosing a fixed price, you can lock your position for a 1 or 2 year period.

Variable pricing does not provide this opportunity and is therefore a more riskier decision at this time.

Proceed with caution and make sure to get all the facts before choosing a deregulated residential electric provider.

Read more: http://www.philly.com/inquirer/business/20110116_New_Jersey_consumers_perplexed_by_elecric-power_options.html?viewAll=y#ixzz1BFl4JZXL
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Published: Tuesday, December 14, 2010

By Brian McCullough; Journal Register News Service

The right to choose isn’t much good if it’s not used. That’s the message of Sonny Popowsky, Pennsylvania’s Consumer Advocate, and the state Public Utility Commission, who are urging electric users in the region to make an informed decision on whether they want to continue to receive electricity generated by PECO.

“What I hope is that people decide,” Popowsky said. “My hope is that people across Pennsylvania will know they have a choice and take the time to make it.”

Effective Jan. 1, consumers in southeast Pennsylvania can choose the company that generates their electricity. The choice comes as electric rate caps imposed on PECO are ending.

The caps are coming off four utilities in Pennsylvania, with PECO having the largest number of affected customers. They are the last four electric utilities in the state that had rate caps in effect.

Throughout much of last year, there were dire predictions of electric rates skyrocketing 30, 40 or 50 percent when the rate caps expired.

Now, however, with the recession and an increase in the supply of natural gas used by power generating stations, the increases are much more modest.

PECO is saying its rates for residential customers will increase 5 percent in January while rates for large industrial businesses will go up 7 percent. Small businesses — those that use less than 500 kilowatt hours per month — will actually see a decrease in PECO rates of about 5 percent, spokeswoman Cathy Engel said.

The key number for PECO residential customers to look at when considering a change is 9.92 cents, which is PECO’s price per kilowatt hour heading into the new year.

Residents are urged to visit the website established by the PUC specifically for the switch, www.PaPowerSwitch.com, to see what new suppliers have entered their area. Residents can shop by entering their ZIP codes. Frequently asked questions on picking an electricity supplier/

In the 19067 Yardley-Morrisville ZIP code, for instance, 17 suppliers are registered to sell electricity — all but one of which come in below PECO’s default price.

Generation suppliers registered in the Yardley area, for instance, are: BlueStar Energy, Champion Energy Services, Commerce Energy Inc., Con Ed Solutions, Direct Energy, Dominion Energy Solutions, Energy Cooperative Association of Pennsylvania, Energy Plus Holdings, Gateway Energy Services Corp., North American Power, Palmco Power Pa. LLC, Public Power LLC, Respond Power LLC, Spark Energy LP, Stream Energy Pennsylvania LLC, Verde Energy USA Inc., Viridian Energy and Washington Gas Energy Services.

Three of the providers — Blue Star, Commerce and the Energy Cooperative Association of Pennsylvania — advertise renewable energy.

According to the website, a residential customer using 700 kilowatt hours of electricity a month from PECO pays $69.30 a month. The lowest price listed on the Web site Monday came from Stream Energy, with a variable rate of 7.43 cents per kilowatt hour for a monthly bill of $52.01. The highest came from Commerce Energy, the renewable energy provider, with an average listed monthly bill of $77.35.

No Blacklist

One of the obstacles consumer advocates and regulators face in getting consumers to make the switch is a fear that doing so will mean a drop in service when there are outages or other service issues, said Rob Powelson, the former head of the Chester County Chamber of Business & Industry and now a PUC commissioner.

What consumers are choosing is the company that will generate the electricity. PECO will continue to deliver it and will continue to respond to emergencies with no regard to a customer’s selected generator, he and Engel noted.

PECO also will continue to deliver the bills to all electric customers in the region. The only difference will be on the line that lists the generator.

PECO will be the default provider of electricity to consumers in their region who do not shop.

“PECO does not care where you get your energy generation from,” said Powelson, a Kennett Square-area resident, noting that the Philadelphia-based utility is required to shop on the open market itself for the lowest prices. “PECO will still come out when there’s a storm.

“I hear people say all the time they’re going to be put on a blacklist if they switch,” Powelson said. “I can’t stress this enough: Customers are not going to offend PECO by picking another generation supplier.”

Engel agreed.

“It has no impact on us what supplier they choose,” the spokeswoman said. “We are an energy delivery company.”

She does urge consumers to keep in mind a few things as they shop, however, such as whether the prices being quoted are fixed or variable, and whether there are cancellation fees.

The Numbers

According to the PaPowerSwitch.com Web site, 659,187 electric customers across Pennsylvania have switched generation suppliers in recent years.

Since the rate caps expired in the PPL territory in central Pennsylvania a year ago, 400,000 of the 1.8 million PPL customers have switched, said PUC spokeswoman Denise McCracken. At that time, consumers were looking at rate increases of 30 percent, giving them more motivation to shop, she noted.

The changeover has been much slower in PECO’s territory to date, with a little more than 2,000 residential customers, or 0.2 percent, changing providers. That figure is probably attributable to the smaller increase in prices electric customers face this year, she said.

Overall, 20,860 PECO customers, or 1.3 percent of its total base, have switched, the bulk of which are businesses that use more electricity and are more affected by higher rates.

Powelson believes the pace of switching will pick up in the first quarter of next year, when the PUC “is optimistic” that 20 percent to 25 percent of PECO customers will choose to switch.

“I’d love to see 50 percent to 100 percent,” Powelson said. “Every year you choose your health care plan, you choose your cell phone provider, you choose your cable provider.

“Now, this is another choice you have.”

Whatever provider people choose, Powelson hopes they take advantage of PECO’s Smart Ideas program, which offers incentives to consumers to make their homes more energy efficient. Powelson said he has used it himself to reduce his energy bill.

“Customers now have options to save money on energy usage,” he said.

Where’s The Bottom

November 12, 2010

Natural gas prices continue being very competitive. 

How low will they go? 

Hurricane season does not officially end until November 30th, however it is rare to see a tropical storm in the Gulf this late in the season. The 2010 Atlantic Hurricane season was very active this year, with 19 named storms. The last time I looked we were up to T for Toma. 

Here we are heading into the end of November and natural gas nymex prices are still under $4.00. 

Where is the bottom? 

Without a crystal ball, this ends up being a very difficult question to answer. 

When you look at the overall picture not much has changed, Storage levels are still at a 5-year high and holding. It has been like that for several years now.

 We do have the Marcellus gas in Western PA. Some geologists estimate that it could yield enough gas to supply the entire East Coast for 50 years.

 That must prove to be the major factor. It is the old supply demand scenario?

The bottom line states, that if your business is currently spending a minimum of $3000 a month and you are still with the local provider, you should be looking at buying natural gas from a 3rd party provider in the deregulated market.

Did you know that if you are a PSEG customer, you ended up paying 15% higher for natural gas over the last year?

How much savings would that have equated for your company?

With natural gas prices being so low we have also seen this translate into very competitive deregulated electric prices. We recently signed a client the other day and they will be saving 30% on their electric supply cost for the next 2 years.

I know that savings is a parity of how much you spend but let me ask again.

How much savings would that have equated for your company?

If you are currently spending over $3000 a month on electric and your company is still with the local provider, you should be looking at buying electric from a 3rd party provider in the deregulated market.

To find out more about this opportunity email george@hbsadvantage.com or feel free to call 856-857-1230.

By Andrew Maykuth

Inquirer Staff Writer

Brace yourself for power shopping – and we’re not talking about a marathon outing at the mall.

Nearly two dozen energy companies are scrambling to sign up Peco Energy Co.’s biggest, most lucrative customers – the commercial and industrial users – in preparation for electric deregulation at the end of this year.

About 110 customers of the Philadelphia utility attended a seminar Tuesday at the Union League to learn more about the implications of electric choice. The bottom line: Large customers should shop around for power, because their competitors are, too.

“This is a wonderful opportunity for you to save money,” James H. Cawley, chairman of the Pennsylvania Public Utility Commission, told the seminar, sponsored by one supplier, GDF Suez Energy Resources.

The PUC is promoting energy choice as an option for customers to fashion a deal specific to their needs. A school district, for example, might bargain for a lower price because its facilities are closed in the summer, when power costs more. A business promoting its green image might buy from renewable suppliers that generate from wind, solar, or hydroelectric plants.

“You have a choice to get your electricity from somebody else who can be much more attentive to your individual needs, your own risk tolerance, your own environmental desires,” Cawley said.

Under the Electricity Generation Choice and Competition Act, utilities hived off their power-generation units and will now make their money strictly by distributing power on their lines.

The utilities’ rates were capped at 1996 levels to allow them to ease the transition to competitive markets.

For Peco, the rate caps will be lifted at the end of this year. Customers who don’t want to shop around can stay with the utility’s “default rate.”

For large customers, Cawley said, the default rate is likely not the best deal because it contains a significant “risk premium” for Peco to lock in prices now. Alternative suppliers are more nimble in fashioning rates to suit the needs of specific users.

“Don’t sit there and take the default rates,” he said, without endorsing any specific alternative supplier. “You’re silly to do that.”

Cawley said many customers were still confused over the roles played by the traditional utility that distributes power and those companies that generate it. Peco, as a distribution company, will still provide customer service and billing for most users.

“People don’t understand this distinction between distribution and generation,” he said. “Your electric-distribution company does not care if you shop. . . . In fact, they’d like you to shop.”

Since the rate caps came off on Jan. 1 for customers of PPL Electric Utilities, the Allentown company reported that 32 percent of its total customers have switched to alternative suppliers, according to the PUC.

But nearly 80 percent of its large commercial and industrial customers have switched. All told, 75 percent of PPL’s load – the number of kilowatt hours transmitted through its wires – is now supplied by alternative companies.

Marketing efforts aimed at Peco’s residential customers are not expected to materialize until late in the year – and officials expect only a small percentage of customers will be inclined to switch.

The reason: Though PPL’s default rate went up more than 30 percent this year, Peco’s is expected to increase only about 10 percent from current rates, Peco president Denis O’Brien said in a recent interview.

But commercial and industrial customers – who represent about 10 percent of Peco’s 1.6 million customers – are a different story.

Even a small percentage of savings is attractive to a big customer whose annual electric bill might total millions of dollars.

“The larger customers are keyed into this because it’s such a big part of their costs,” said Tom Petrella, regional sales manager for Hess Energy Marketing, which also had a Center City educational seminar Tuesday.

Many of the 21 suppliers registered with the PUC to supply electricity to large Peco customers are the marketing arms of other utilities with familiar names: Con Edison Solutions, First Energy Solutions, UGI Energy Services, and Allegheny Energy Supply Co.

Exelon Energy Co. is among the competitors selling power directly to Peco customers – both companies are owned by Exelon Corp.

Some suppliers have adopted more public marketing campaigns: PPL EnergyPlus, a sister company of PPL Electric, bought the naming rights to the new professional soccer stadium in Chester this year to help raise its profile.

GDF Suez, the company that held the Union League seminar Tuesday, bills itself as the “biggest company you’ve never heard of.”

The $109 billion French company is the world’s largest utility, has 200,000 employees, according to Forbes magazine, and is among the largest suppliers of power in the United States.

Like many suppliers, it has opened an office in the Philadelphia area.

Our Perspective:

Deregulation is about to begin in Jan 2011 for customers in the Peco territory. If you already have not started looking at the deregulated savings opportunity, now is a great time to start.

Electric commodity prices are very competitve offerring great opportunities to fix your supply price and save on your purchasing of electric for the next 12 to 24 months.

Hutchinson Business Solutions (HBS) is an independent deregulated energy consultant. We have been providing deregulated savings to our clients for over 10 years.  HBS has strategic partnerships with all the major providers currently marketing to the PA electric market.

You may ask, why should we use an independent consultant when we can deal with the energy companies directly.  The value we bring is that we are able to shop the entire market, offering an apple to apples comparison of what your current price to compare is from your local provider vs the deregulated providers.

You must be careful when comparing prices; for not every providers are including all the cost to make a correct comparison.

When speaking to the various deregulated, you must ask if the  prices are fully loaded.

In order to deliver 100,000 kwh of electric, a provider must send 107,000 kwh of electric due to the loss in delivering the electric. This cost is included in your PECO / PPL price to compare. You must verify if this cost is also included in the deregulated provider price.

Also the Peco price to compare also includes PA gross receipt tax. This also must be included.

As you can see, there are several factors that must be included to make an objective decision as to the best value. This is the expertise that HBS brings to our clients. We allow our clients to do what they do best (run the day to day business), while we become your legs and do the project for you.

There are no additional fees for our services. We receive a small residual from our strategic deregulated providers during the term of the contract. All the providers choose to use independent energy consultants; for it allows them to be more competitive in the market prices. We are not paid a salary, do not share in any of their benefits. That way, you will find that many times our prices are more competitve.  We add the benefit of  being able to define which providers are the most competitive for your unique market usage and will show you the variances in pricing.

Should you like to know more about saving in the deregulated utility market email george@hbsadvantage.com
Read more: http://www.philly.com/philly/business/homepage/20100616_Peco_Energy_customers_at_seminar_on_electrical_deregulation.html#ixzz0wVg1QQ7q
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