What is Electric Choice

August 6, 2010

As reported by Pennsylvania PUC

General
   
Q: What exactly am I shopping for?
A: You are shopping for the company that supplies your electric generation. There are three parts to electric service: generation, transmission and distribution. Generation is the production of electricity. Transmission is the movement of that electricity from where it is produced to a local distribution system. Distribution is the delivery of purchased power to the consumer. 
Q: Will I be charged tax on the generation portion of the bill?
A: Yes. Taxes are included in the rate charged by a supplier. Most of the same taxes that the EDC was required to pay will be charged to the supplier. However, they may not be itemized like they were on your bill before you chose a supplier. 
Q: What is an aggregator?
A: A buying group that negotiates lower electricity prices for customers who have authorized them to act on their behalf. 
Q: How do Electric Generation Suppliers (EGSs) set their prices?
A: EGSs consider market conditions, the amount of power customers use, fuel type, terms of their agreement and other services they may provide. These prices are not subject to PUC review. If you sign up, your EGS must notify you before they make any changes to the terms of your contract. 
Q: Will my EDC charge me more for “other services” if I change suppliers?
A: In most cases, your EDC cannot increase any charges based simply on your selection of an alternative supplier. However, if you currently benefit from a special discounted rate (for instance, for having all-electric heat) and you select a new generation supplier, you may lose your discount on other parts of your electric service (including distribution and transmission charges). In this case, shopping for another supplier may end up costing you more money, even if the cost of generation is lower. 
Q: Q & A on Electricity Pricing, Electric Generation Supply, Energy Efficiency & Conservation for the Commission
A: The following questions and answers tell you how you can reduce your electricity use when demand for electricity is the greatest, often during hot summer days. This is important for two reasons. First, cutting back on your electric use will reduce your electric bill. And, second, by controlling your energy use, you can help ensure there is enough electricity for all consumers. Click here.

Energy Conservation and Energy Efficiency Information Sources. 

What You Need to Know Before Shopping for a Supplier
   
Q: What is the ‘price to compare,’ and where can I find it?
A: This is the price per kilowatt-hour (kWh) a consumer uses to compare prices and potential savings among generation suppliers (also formerly known as the shopping credit). You can find your price to compare on your electric bill. If you have questions, contact your EDC. 
Q: Where can I get information on supplier prices?
A: Each supplier’s price can be different. You can get pricing information by contacting the suppliers serving your area or click here for pricing information resources. 
Q: How will I know that a supplier is reliable?
A: Only electric generation suppliers that are licensed by the Public Utility Commission (PUC) can do business in Pennsylvania. If they are not licensed in Pennsylvania, do not sign up for service from them. 
Q: If I sign up with a new supplier, when will the switch to a new supplier start?
A: It will depend on when you sign up with a new supplier. Generally, it will take about 45 days from the time you notify your new supplier for the actual switch to occur. 
Q: Will I receive two electric bills each month if I choose a new supplier?
A: In most cases, you should be able to receive a single monthly bill from your current electric distribution company. However, some suppliers might want to bill you separately. In this case, you would receive two bills, one from the EDC and one from the supplier. 
Q: Once I select a supplier, what happens next?
A: 1) Your new supplier will notify your EDC of the change.
2) Your EDC will contact you by mail to make sure you selected this company to be your electric generation supplier. 
Q: Are there any penalties for changing suppliers?
A: If you already have an agreement with an electric generation supplier and you want to switch to a different supplier, you should carefully review your agreement with your current supplier to see if there are any penalties for early cancellation. If you are not sure, you should call your current supplier. The new supplier that you choose will not charge a fee to switch to them. If you choose to return to your Electric Distribution Company (EDC), the EDC will not charge you a fee to do so. However, if you switch back to the EDC, you may have to stay with the EDC for at least 12 months. Ask your EDC if they have a 12-month stay rule. 
Figuring Your Savings
   
Q: How do I figure my savings?
A: To estimate potential monthly savings, subtract the supplier’s price from the price to compare from your EDC. Then, multiply the difference by the average number of kilowatt-hours (kWh) you use in a month. Click here to use the online calculator to determine potential savings.

Additionally, when comparing prices, it’s also important to consider the effect of different electric programs to which you may subscribe. If a supplier offers a discount, find out what part of your bill that discount applies. For example, does it apply to your entire bill or just the generation charge? If you are a low-income customer and want to know whether you qualify for certain low-income assistance programs that help pay part of your electric bill, click here

Electric Choice Program Savings
   
Q: How much money will I save in the Electric Choice program?
A: Your potential savings will vary. The amount you might save depends on several factors, such as how much you pay now for electric generation; how much electricity you use; and the price offered by an electric generation supplier. 
Q: Who do I contact if I want to discontinue service?
A: If your EDC sends you one bill for all of your charges, you should call them. If you receive a separate bill for generation, you may have to call either or both companies. 
Q: What happens if I move outside my current EDC’s service territory?
A: If you are moving out of your current EDC’s territory, your EGS enrollment does not go with you. You need to contact your new EDC and sign up for EDC service with them. You can ask the EDC for a list of suppliers serving in their territory. Your former supplier may not be providing service in that territory, so you will need to check the list, select a supplier and contact the supplier to enroll. 
Service
   
Q: Will I have reliable service?
A: Yes. You can depend on the same reliable service from your local electric distribution company whether or not you choose a new supplier. 
Q: If one company generates my electricity and another provides the rest of my electric service, who will I call about outages or repairs?
A: You will still call your local electric distribution company about power outages and repairs. If you have questions about electric generation billing or other issues related to generation, call your new supplier. 
Q: Who do I contact if I have billing questions?
A: If your EDC sends you one bill for all of your charges, you should call them. If you receive a separate bill for generation, you may have to call either or both companies. 
Q: Who do I contact if I want to discontinue service?
A: You should call your EDC. You should also notify your supplier of the fact that you are stopping service. If you are moving within your current EDC’s service territory, you can arrange for new service at the same time and you should be able to keep the same supplier. 
Slamming
   
Q: What is slamming and how can I prevent being slammed?
A: Slamming is the unauthorized transfer of utility services without the customer’s permission. To prevent slamming, and regardless of whether you made an agreement with a supplier on the telephone, or over the Internet, your chosen supplier must send you the agreement in writing in an email, U.S. mail or in-person hand-delivery. You have 3 days to accept or decline the agreement upon its receipt. In addition, when your EDC receives notification of a supplier change, it will send you a confirmation letter. You must respond to the EDC within 10 days if the information is incorrect. During that 10-day period if you notify your EDC you did not want the change of supplier, the supplier change will be cancelled and your account will be restored without penalty. 
Metering
   
Q: Can I be in the Electric Choice Program and still benefit from a time of day meter (off-peak meter)?
A: Maybe. You must be sure to compare the rates you are being charged for off-peak service with the rate you will be charged from a competitive supplier. Some suppliers may offer lower or higher prices at different times of the day. For instance, you may be able to receive a discount for using your clothes dryer at night instead of the day, when electric use is higher. Ask the supplier if you need a special meter to take advantage of time-of-day use options. 
Q: Will I need a special meter if I choose a new supplier?
A: Not if you are a residential customer. You might, however, have an opportunity to choose to have an advanced meter. These meters allow you to record your electric use during specific time periods. If a supplier offers this service, advanced metering could allow you to benefit from special time-of-day discounts or other potential ways to save money and reduce energy consumption. You should ask a supplier, however, whether there is a charge for the advanced meter. 
Q: Will my EDC continue to be responsible for reading and maintaining my meter?
A: In most cases, yes. 
Payment Assistance Programs
   
Q: What energy assistance is available to customers?
A: LIHEAP/CRISIS program payments will cover supplier charges. However, before LIHEAP/CRISIS payments can be made to any qualified service provider, the provider must have an agreement with the PA Department of Welfare (DPW). As of June 11, 1998, no suppliers have agreements with the DPW and as a result they cannot receive program money. If you are part of the Competitive Discount Services Program (CDP), the EDC will apply the LIHEAP grant to your entire bill.

The EDCs have agreements with the DPW, but they are not permitted to provide program money to any suppliers. As a result, you may find that you have a credit with the EDC yet still owe the supplier money. 

Stranded Costs
   
Q: What are the “competitive transition charges”(also known as stranded costs) charges on my bill?
A: Stranded costs are expenses for utility plants and equipment that were built before deregulation. These costs cannot otherwise be recovered in a competitive electric market. The PUC allows companies to recover some but not all of these costs through a transition charge on electric customers’ bills. These costs are now itemized on your electric bill; however, they are not new charges. Most of these costs were part of your rates under regulation. The CTC will be phased out over time. 
Q: Do we have to pay stranded costs if we are buying generation from a supplier?
A: Yes. Stranded costs have nothing to do with who provides your generation service. All customers who receive electricity over the EDC’s transmission and distribution system pay stranded costs. In some EDC territories, these charges will disappear beginning in 2002. 
Renewable Energy
   
Q: Which suppliers use renewable energy?
A: Some suppliers use renewable resources to generate electricity by a mix of sources, or only one source, such as wind. Suppliers should be able to tell you the percent of renewable resources that is part of their generation. You may find out more about renewable resources from the Clean Air Council by calling 215-567-4004, ext. 236.

Below are press releases regarding the Pennsylvania Public Utility Commission’s involvement in encouraging renewable energy in Pennsylvania:

PA PUC Chairman Glen Thomas Says PA State Government Leads by Example by Purchasing Green Energy, Shopping for Power

PA PUC Chairman Glen Thomas Dedicates Wind Farms that Secure PA’s Status as East Coast Leader for Wind Energy, National Leader for Electric Choice

PA PUC Commissioner Fitzpatrick Unveils Largest Solar Electric Power Plant in Western PA that Further Secures PA’s Leadership for Green Energy 

Competitive Default Service (CDS) Program
   
Q: What is the Competitive Default Services Program?
A: A program created from the electric restructuring settlements that require 20% of an EDC’s residential customers – determined by random selection, including low-income and inability-to-pay customers, and regardless of whether such customers are obtaining generation service from an EGS – to be assigned to a default supplier other than the EDC. The supplier is to be selected on the basis of a Commission-approved energy and capacity market price bidding process. Currently, four (4) EDCs have programs, but none have been successfully implemented due to a lack of interest on the part of EGSs. PECO Energy, working with New Power and Green Mountain Energy, has developed a program in southeastern Pennsylvania similar to CDS. It involves non-shoppers being assigned to a new supplier for service. The supplier is not a default supplier – customers can return to PECO’s regulated generation service. In the program, suppliers provide 2% renewable energy to customers in the first year, and .5% thereafter.

See the following Dockets for more information about the CDS programs by the EDCs:

PECO – CDS BID – New Power

Allegheny Power CDS Order

Allegheny Power Amended Petition for CDS Program 2001

GPU CDS Petition – GPUE Request to Withdraw Contested Pleading 

Fuel Source Information and Power Plant Emissions
   
Q: How can I find out information about air emissions from power plants?
A: E-Grid, a database developed by U.S. Environmental Protection Agency, integrates more than 20 federal databases, provides power plant emissions data for Nitrogen Oxide (NOx – smog contributor and acid rain precursor), Sulfur Dioxide (SO2,- acid rain precursor), Particulate Matter (PM – responsible for respiratory problems, haze issues) Carbon Dioxide (CO2,- global warming gas), and Mercury (Hg- water toxicity). The database can be used for: fuel source information, analysis of changing power markets, development of Renewable Portfolio Standards, utility emission and emissions standards. Download E-GRID at www.epa.gov/airmarkets/egrid

 As reported by Pennsylvania PUC

Electric customers in Pennsylvania were among the very first in the United States to have the ability to choose the company that supplies their electricity. You may be able to choose your electric generation supplier (EGS) in areas where competitive electricity supplies are being offered. Consumers may be able to secure supply rates below the prices offered by their utility. Generation supply costs comprise the majority of the average electric bill. Consumers are encouraged to proactively engage competitive suppliers – whose price is unregulated by the Pennsylvania Public Utility Commission (PUC) – to obtain pricing information for the generation portion of their bill. Competitive offers may not be available in all areas.

The PUC has engaged consumer advocates and industry experts in efforts to mitigate any price increases in future electric generation prices. The PUC has been working to educate consumers; develop strategies to remove barriers for suppliers providing competitive electric service; approve phase-in or pre-payment plans and direct all utilities to file such programs if electric rates increase by more than 25 percent; update low-income programs that provide customer assistance; and implement default service pricing that reflects the least cost to consumers over the long term. We also are continuing to implement reasonable, cost-effective programs that consumers and companies can implement to conserve energy or use it more efficiently.

Why are there rate caps, and why are they expiring?

Under the 1997 Electricity Generation Choice and Competition Act, electric rates – which are comprised of generation, transmission, and distribution – were capped to ease the transition to competitive markets.

The 1997 law allowed residential customers to have direct access to and purchase power from independent EGSs, while still having their electricity physically delivered by electric distribution companies (EDCs) regulated by the PUC. The law also permitted the EDCs to recover “stranded costs.” Stranded costs include investments in infrastructure made before the law was passed that may have become uneconomic and unrecoverable in a competitive environment. With limited exceptions, once rate caps expire, the companies can no longer collect for stranded costs.

In exchange for the recovery of stranded costs, generation, transmission and distribution rates were capped at 1996 levels. The caps on transmission and distribution rates all have expired. After litigated proceedings before the PUC, the generation rates were extended for many of the electric companies. As determined by those proceedings, all utility rate caps will expire by Jan. 1, 2011.

 

Caps 

Company

 

 

Generation Rate Cap Status

 

 

% of PA Ratepayers

 

 

Citizens Electric Co.

 

 

Expired

 

 

0.1

 

 

Duquesne Light Co.

 

 

Expired

 

 

10.6

 

 

Pennsylvania Power Co.

 

 

Expired

 

 

2.8

 

 

Pike County Light & Power Co.

 

 

Expired

 

 

0.1

 

 

UGI Utilities Inc.

 

 

Expired

 

 

1.1

 

 

Wellsboro Electric Co.

 

 

Expired

 

 

0.1

 

 

PPL Electric Utilities Inc.

 

 

Expired

 

 

24.6

 

 

Metropolitan-Edison Co.

 

 

Dec. 31, 2010

 

 

9.5

 

 

Pennsylvania Electric Co.

 

 

Dec. 31, 2010

 

 

10.6

 

 

PECO Energy Co.

 

 

Dec. 31, 2010

 

 

27.8

 

 

West Penn Power Co.

 

 

Dec. 31, 2010

 

 

12.7

 

 

 
 

What will happen once the generation rate caps expire?

The PUC expects that customers may see an increase in their bills after the expiration of rate caps. While Pennsylvania consumers’ rates have been capped, the market prices for electricity have risen. The magnitude of those increases will depend upon market prices when the EDC acquires its power.

Do I have to pay what the EDC is charging for electric generation (default service)?

Customers do not have to pay the EDC prices. They will have the ability to choose between an EDC and competitive supply prices for the generation portion of the bill. An EGS may be able to offer a better price for the generation. Customers will be able to compare the EDC price to a competitive supplier price to find the best option.

The amount you might save depends on issues such as:

• How much you pay now for electric generation supply;

• How much electricity you use;

• How market prices change in the future;

• What products and service are included in the EGS price such as renewable energy produces or other demand side and conservation services; and

• The price offered by the suppliers serving your area.

Who can take part in Electric Choice?

Every electric customer has the option to take part in electric choice, pending the availability of competitive suppliers in the service territory. As of January 2009, the Commission licensed more than 45 EGSs. While the Commission may license an EGS, it cannot force the EGS to offer services.

Can I save money by choosing a competitive supplier?

In the territories where rate caps already have expired, an increase in the number of EGSs offering services to residential customers has occurred. In some areas, the EGSs rate is as much as 10 percent cheaper than the default service price offered by the utility. An EGS may be willing to negotiate on price or other services to entice you into switching suppliers. The Office of Consumer Advocate offers consumers a direct comparison of the utility prices versus the supplier price. You can view the “Price to Compare” at http://www.oca.state.pa.us.

Remember, regardless of who generates your electricity, you will still continue to call your EDC for emergency services and questions regarding your residential service including outages. The quality, reliability, and maintenance of your electric service should not change as it is still monitored by the Commission. However, if you have a question about your generation charges you should first call your EGS.

If I choose a new EGS, can I change my mind and choose another EGS?

Yes. However, you should carefully check the terms of the agreement with the EGS, especially for length of contract and any penalty clauses.

I participated in a pre-pay program with my utility, but would like to choose another supplier. What happens to my money?

The money that you deposited in a pre-pay plan and any interest will be applied to your account, no matter who supplies your electricity.

For further information, contact the Public Utility Commission:

Call

1-800-692-7380

For people with speech or hearing loss, dial 7-1-1 (Telecommunications Relay Service)

Write

PA Public Utility Commission

Bureau of Consumer Services

P.O. Box 3265

Harrisburg, PA 17105-3265

Visit our website

January 2010

 

 

As reported by David Fein  Post-Gazette

For nearly a decade, Pennsylvanians paid the same rate for electricity with no increase in price to account for inflation and global increases in commodity prices. No other commodity in Pennsylvania was price-fixed this way. Not natural gas or heating oil or water.

Yet for some reason, the end of electricity rate caps in Pennsylvania was predicted to be the apocalypse for businesses. But Jan. 1, 2010, came and went, and doomsday never arrived.

In fact, Pennsylvania has a good story to tell when you look back at the first quarter of electric competition in the PPL Corp. service area and look ahead to the opening of the Allegheny/West Penn market locally in 2011.

No less than 27 power providers are competing to serve residents, businesses, schools, universities, hospitals and units of local government where PPL used to have sole purview — and such competition can mean lower rates for customers. As a result, in only three months, 363,000 residential users opted for a new company to deliver their electric needs.

PPL estimates that 55 percent of large industrial users have taken advantage of the competitive marketplace and switched to other suppliers, as well. As important, this doesn’t include the businesses that have weighed their options and exercised their choice to stay with PPL.

After only one quarter in an open electricity market, it’s already clear the entrepreneurial spirit of Pennsylvania is alive and well. Businesses, universities and local governments are making smart decisions that not only help their bottom line, but that also provide stability across several industry sectors during an uncertain time in our national economy.

That level of performance reveals how Pennsylvania is well on its way to having one of the most successful competitive markets in the nation.

States from Texas to New York have opened their electric markets to retail competition but none had shown such immediate and dramatic results. Pennsylvania’s numbers will continue to grow as more businesses and other customers explore an open and competitive market — and as new marketplaces open on Jan. 1 for customers in areas serviced by Allegheny Power, Metropolitan Edison, PECO and Penelec.

While it’s early to forecast savings for Pennsylvania’s electricity customers, we can look to the experience of states like Illinois that have had competitive electricity markets for more than a decade. Over that period it is estimated that retail customers saved in excess of $1 billion. Pennsylvania has made the right decision for the long term.

Competition also has bred the development of new products and services not typically found in closed, monopoly-regulated markets. Today’s market opens the door to new possibilities for businesses to embrace environmentally friendly and cost-effective alternative energy sources such as wind or solar energy.

For example, the Harrisburg Regional Chamber and Capital Region Economic Development Corp. did something many would have thought impossible a few short years ago; it purchased wind energy certificates to power its Business Expo.

New energy companies in the PPL market also are challenging each other on new technological fronts to provide savings for their customers. Businesses no longer have to wait for monthly electric bills to set energy budgets; they can monitor their energy usage on more frequent intervals. This gives businesses the opportunity to plan ahead as to how they use energy, depending on what it costs at any given time.

Energy companies vying for business in a competitive, open marketplace foster innovation and new technology. In time, as customers become more sophisticated in exploiting the power of competition, they will demand greater innovation and specialized services from electric suppliers, and new products and services will be developed that provide greater control over energy usage and how that energy is generated.

The development of competition helps families and businesses control energy costs and allow units of government to preserve ever-shrinking resources. Such possibilities would never have developed under the old regulatory system.

Pennsylvania policy makers have developed a well-structured environment for competition to flourish — which will bring many benefits to Pennsylvanians for years to come.

Our Perspective:

The deregulated market offers great opportunities for savings for those companies that are paying more than $3000 a month for electric. HBS has clients in the PPL territory that are saving over 20%.

Granted the cost may be higher than what you have paid in the past 12 months, but when PA lifted their rate cap in Jan 2010, prices jumped.

The current PPL price to compare is arond $.105 cents per kwh. Depending on your usage patterns and cuurent market conditions, we were able to lock our clients in the $.082 to $.086 cent range.

Starting in January 2011, Peco customers will be joining the deregulated market. For commercial clients, Peco will be making 4 purchases from Sept 2009 to sept 2010. They have completed 3 of the 4 purchases and will be releasing a price to compare shortly.

For more information on saving in the deregulated utility market in PA email george@hbsadvantage.com

About Deregulation

July 19, 2010

As reported by PSEG

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.

Our Perspective:

Deregulation has presented a great opportunity for busnesses who are spending more than $3000 a month on their electric bills. Open market electric prices are the lowest they have been in over 4 years. HBS clients are saving from10% to 25% on their electric supply cost depending on their uasge patterns. Those businesses that are designed to use more off hours usage, will find the largest opportunity for savings.

To learn more about your opportunity to save in the deregulated energy market  email george@hbsadvantage.com

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 has recently presented great opportunities for business to find savings from 10% to 25%. The current natural gas and electric commodity prices are the lowest they have been in the last 4 years.

Remember, savings is a parity of how much you spend. We have small clients saving $5,000 to $10,000 a year, while larger clients are saving $100,000 to $200,000.

Not bad! It is like receiving a gift.

We are currently waiting for Peco to release their price to compare figure. This will serve as the basis to determone what value deregulation will bring to the Peco territory. If Peco’s prices pare to what PPL is currently charging, you will be finding savings running between 15% to 20%.

Who qualifies?

If you are currently spending a minimum of $5,000 a month on natural gas or  $5,000 a month on electric, you should be looking at the dergulated market for savings.

The first step is easy. All we need is a copy of your latest invoice from Peco. We will also need you to sign a LOA (letter of authorization), which will allow us to request annal usages for your accont from Peco.

With this information, we are then ready to spreak to the providers looking to sell electric.

Hutchinsson Business Solutions (HBS) is  an independent energy management company. We have been providing deregulated saving opportunities to our clients for over 10 years. We have strategic partnerships with all the maajor providers looking to sell electric in PA.

We know the market and we know the sweet spots each provider looks to participate in.

We will validate what you currently are paying.  Define what you will be paying, should you remain with Peco. We will present opportunites for savings in the deregulated market.

There are no fees for our services for we receive a small residual from the providers.

To learn more about dergulated saving opportunities email george@hbsadvantage.com or call 856-857-1230

Read more: http://www.philly.com/philly/business/homepage/20100616_Peco_Energy_customers_at_seminar_on_electrical_deregulation.html#ixzz0rnTAXq3t
Watch sports videos you won’t find anywhere else

As you may know, with the enactment of the Electricity Generation Customer Choice and Competition Act in Pennsylvania, customers have the ability to choose who supplies their electricity.  With rate caps expiring January 1, 2011, customers in the PECO utility territory should be reviewing their supply options.   

PECO will be holding an auction on May 25, 2010 to obtain electric power for the largest commercial and industrial customers – those in the above 500kW customer class. Earlier this year, those customers were sent a letter from PECO requesting that they indicate whether they were interested in having their electrical needs included in the PECO auction.  Customers that sent back a response by March 1, 2010 and indicated that they were interested in reviewing the one year fixed price offer from PECO for calendar year 2011, will be allowed to select the fixed price that is the result of that auction process. 

Once the Pennsylvania Public Utility Commission (PAPUC) enters a decision that approves the results of the auction, PECO will announce the applicable fixed price rate for 2011, and customers will then have a 30 day window to indicate if they will accept the fixed price offer

Once PECO announces the fixed price rate on May 25, 2010, you have the ability to compare the rate from PECO to pricing and options from other suppliers.   With electric commodity prices at 5 year market lows, and electric generation suppliers (EGS) competing for your business, it could be advantageous to consider your options.

With the transition to a competitive market and the expiration of rate caps, all customers in the PECO service territory are able to have a meaningful choice in their electric supplier and can select service from a licensed EGS. 

If your business or organization chooses to receive electric supply from an EGS, you can select a product or term of service now that meets your electric needs in 2011.  This allows you the flexibility of reviewing your options in advance and an opportunity to choose from product options that work best for you and your business. 

Products offered by EGS differ from that which is available from PECO, such as renewable energy, demand response, and electricity product offerings, and can be individually tailored for you and your business. 

Our Perspective:

We have found that the deregulated market can offer savings from 10% upto 25% depending on your usage patterns. We are still awaiting Peco to release their price to compare figures. This will serve as a basis to make your decision. Hutchinson Business Solutions (HBS) is an independent energy management consultant. We represent all the major providers offering opportunities for savings in the Peco deregulated market.

 To begin, all we will need is a copy of yor latest Peco energy invoice along with a signed letter of authorization, which will allow us to request  your annual usages over the past 12 months.

To find out more about your options in the PECO utility territory email george@hbsadvantage.com or call 856-857-1230.

Peco Deregulation

May 24, 2010

As reported by Electricitywatchdog.org

Lower My PECO BillMay 10, 2010

PECO is trying to prepare their customers for increases in their electric rates in 2011 by unleashing multiple programs.  Recently, the PA Public Utilities Commission announced that Pennsylvania utility companies will be increasing the rates for electricity delivery service in 2011.  In addition, price caps will be expiring in 2011 in the PECO area – as well as Met-Ed, Penn Electric, and West Penn – which are expected to increase default generation rates by as much as 20%.

PECO is rolling out numerous programs to help customers cope with increases including the PECO Smart Home E-Audit, Smart Lighting Discounts, Smart Home Rebates, and Smart Appliance Recycling.  Alot of smart programs, but probably the smartest way consumers will be able to reduce their electricity bill is by shopping for an alternative supplier that will offer a reduced rate versus the PECO price to compare default rates. 

PECO will continue to deliver power to those customers who they are currently delivering to as well as continue to send invoices out.    The decision to choose an alternative electric genaration company will simply be a choice to pay less.  We will be providing contact information and rates for alternative providers as we get closer to 2011.

Our Perspective:

The caps will be lifted on electric prices in Peco territory as of Jan 2011. This will present many opportunities for savings for larger users in the dergulated energy market.

Currently, clients in the PPL terrirory are finding savings of about 2 cents per kwh. We are finding the price to compare in PPL territory to be about $.105 cents per kwh. Depending on their annual usages, we have been able to find opportunities to lock the electric supply prices in the low to mid $.08 cent per kwh area.

We are currently speaking with several clients in the Peco territory and have told them to wait for Peco to release their price to compare for 2011. This will help us to use this as a basis of the opportunity presented.  Sources have told us that this information will be available by the end of May or early June 2010.

Should you like to know more about opportunities for savings in the Peco electric deregulation market email george@hbsadvantage.com

Or visit us in the web www.hutchinsonbusinesssolutions.com

Positive Feedback

May 11, 2010

Our last couple of articles focused on savings in the deregulated utility markets; specifically, energy or voice and data.  We have received a great deal of feedback not only from our clients but many prospective clients, as well.

 The deregulated price of both gas and electric is the lowest it has been in 4 years.  Over the past year, we have seen commodity prices continue to fall; opening up a great opportunity for savings.  But only if you qualify!

What is the qualifier?

 Your monthly natural gas and/or electric supply cost must be a minimum of $5,000.00 each.  When you look at your utility bill, you will note that the price for each utility is made up of 2 factors:

 Delivery….This part of the bill is state regulated and is the charge for bringing both natural gas and electric from the providers’ hub to your location. This price makes up approximately 30% of your overall gas and electric cost. You will see that delivery charges are listed under each utility.

 Supply…. This part of the bill is deregulated and is the only area where you can shop to find savings.  But to shop intelligently, you need to know the factors that affect supply costs.

Buyer Beware…

 If you are not aware of how the price is determined, it may look like a great deal. Once you sign a contract and receive the invoice from the new provider, you will find that the cost is always higher than what the “professional” consultant told you.  And when you inquire why there is a price discrepancy, they will tell you what the consultant did not. 

 All electric supply charges must include a 7% NJ state sales tax and 7% loss allowance.

 Don’t be fooled!   Many “new to the market” Energy Management Consultants either do not know or will not tell you! 

 If you are bidding on electric in the state of NJ, the BPU states that the price to compare (PTC) must contain 3 factors:

  • Supply cost
  • 7% loss allowance
  • 7% sales tax 

 In order to shop your account with multiple providers, these 3 factors should be included to make an apple to apples comparison.

 Hutchinson Business Solutions is an independent energy management consultant. We have been involved in the deregulated utility market for the last 10 years and have strategic partnerships with all the major providers selling energy in NJ and PA.

 Our expertise is in allowing our clients to continue to perform their core competency while we provide smart solutions for smart business.

 Should you like to know more about the opportunities for savings in the deregulated utility market email george@hbsadvantage.com or

call 856-857-1230.

Visit us on the web www.hutchinsonbusinesssolutions.com

    

One of the easiest ways to save money these days is to switch utility providers. Recent increases in the cost of energy are astonishing and finding a competitive deal is a must. There’s hot competition in the utility markets with many companies competing on price alone, as services are otherwise the same across the board.

Apples to Apples

Current market conditions have opened the door to many new faces selling energy in NJ and PA.  The difficulty is to properly define all the ancillary costs in order to present a true comparison of your current cost and the true savings that will be realized during the term of the contract.

Hutchinson Business Solutions (HBS) is an independent energy broker and has been defining saving opportunities in the deregulated natural gas and electric market for the past 10 years. We represent all the providers selling energy in New Jersey and Pennsylvania.

10% to 50% Savings

Though each account is unique, many of the deregulated providers have what they consider to be their sweet spot (their most competitive market).

Because of our strong personal relationships with the providers we are able to more accurately identify the right provider/s for you.  This enables us to present a specific proposal outlining your current cost and all the deregulated utility opportunities available.

We understand your time restraints.  We have an excellent streamlined procedure that makes the whole process simple and easy.  All we need is a copy of your latest provider invoice with a signed letter of authorization, which allows us to pull the annual usages on your account(s).

All the savings fall to your bottom line

There are no costs associated with our service. We receive a small residual from the provider during the term of your contract.

To qualify, your monthly energy costs should be a minimum of $5,000 for electric and $3,000 a month for natural gas.

To find out more, email george@hbsadvantage.com or call 856-857-1230.

You may also visit us on the web to learn more about savings in the deregulated utility market. www.hutchinsonbusinesssolutions.com

Posted on Fri, Jan. 1, 2010

By Andrew Maykuth

Inquirer Staff Writer

When the Pennsylvania legislature approved electric competition 13 years ago, lawmakers imagined that one day most customers would shop around for the cheapest price or the best service – the way they now do with cell phone providers.

That hasn’t happened.

In two parts of Western Pennsylvania, where market rates rule, for example, less than 20 percent of residential customers have opted for alternative suppliers, despite offers of discounts ranging from 7 percent to 10 percent.

Instead of choosing a power supplier that would save a typical Pennsylvania household about $100 a year, residential customers there seem to be saying that the savings just aren’t worth the hassle of shopping.

“The idea was to give customers a choice,” said James H. Cawley, chairman of the state Public Utility Commission. “You can only do so much, and if people don’t help themselves, you can’t make them.”

But Cawley and others say they believe the climate might change dramatically in the next month as full competition is introduced to the vast territory in central and eastern Pennsylvania served by PPL Electric Utilities Corp., of Allentown, which has 1.4 million customers, nearly a quarter of the state’s total.

Today, state-mandated caps will be lifted in PPL territory – which includes parts of Bucks, Montgomery, and Chester Counties – and rates will go up about 30 percent. Five suppliers are blanketing the territory with ads and direct-mail offers of discounts that would cut the amount of the increase about a third.

Already, 148,000 customers, more than 10 percent, have signed up.

The experience in PPL territory will set the stage for the complete transition of Pennsylvania’s regulated electric utilities to open competition at the end of 2010, when rate caps expire for five remaining utilities, including the biggest, Philadelphia’s Peco Energy Co.

Power brokers are ramping up activity in the state now, with the aim of establishing a long-term presence. Cawley said he had talked to the electrical-generation suppliers, “and they think the Peco market is huge.”

If the industry’s experience in Western Pennsylvania is any indication, residential customers will be reluctant to embrace the change.

In areas served by Duquesne Light Co., of Pittsburgh, and Penn Power Co., of New Castle, Pa., where rate caps came off in recent years, only about one in five residential customers have switched suppliers – though a majority of commercial customers and nearly all industrial customers have.

“We and the utilities haven’t done enough to educate customers,” said Dan Donovan, spokesman for Dominion Retail, a nonregulated subsidiary of the Richmond, Va., energy company that markets in Pennsylvania.

Under the Electricity Generation Choice and Competition Act of 1997, utilities such as Peco and PPL Electric divested their power plants and became distributors that deliver electricity to customers. They earn profits only for the monopoly service they provide to all customers, such as billing and maintenance of distribution lines. Those charges are still regulated by the PUC.

Though the utilities are indifferent to which suppliers their customers choose, the PUC has ordered them to provide power to those customers who do not choose. A utility’s rate, which is an average price of contracts from power suppliers who bid at auctions, is called the default rate.

PPL’s default rate is 10.45 cents per kilowatt-hour, compared with prices of 9.38 cents to 9.52 cents per kilowatt-hour from alternative suppliers. The average Pennsylvania residential customer consumes 10,500 kilowatt-hours a year, so those pennies add up.

Donovan said many customers misunderstood the process of shopping for a generation supplier, whose charges typically make up about 70 percent of the total bill.

“It’s painless,” he said. “You still get one bill. It doesn’t change anything.”

Suppliers offering the best prices typically want customers to commit for at least a year. Some impose fees for early cancellation of the contract.

Cawley, the PUC chairman, said customers who did not switch often said they could not be bothered with shopping for savings of only $100 a year.

“That’s not serious money?” he asked.

Many customers also fear that by choosing a supplier other than their present utility, they will be penalized with poor service.

“It’s nonsense,” Cawley said.

Our Perspective:

We have found great opportunity for deregulated savings in the commercial market. 

 Hutchinson Business Solutions is an independent energy management broker. We have been providing savings in the deregulated energy market in the Mid Atlantic region for the last 10 years. We have strategic partnerships with all the major gas and electrical providers selling deregulation in the PPL territory.

Our clients are saving from 10% to 40% in the deregulated gas and electric market.

We offer a free analysis of your current energy cost from your local provider. All we need is a copy of your latest gas and electric bill.

If you would like to know more about the current market conditions and your opportnity for savings email george@hbsadvantage.com or call 856-857-1230