Posted on Tue, Oct. 11, 2011

By Andrew Maykuth

Inquirer Staff Writer

Peco Energy Co. electric customers may be feeling a little deregulatory
whiplash.

Since market rates went into effect this year for the Philadelphia utility’s
1.6 million customers, the price for residential electric power has gone up 12
percent. The biggest quarterly increase took effect Oct. 1 and will be reflected
in bills that go out later this month.

But take heart, customers. Without fanfare, Peco last week posted its
projected prices for Jan. 1, 2012, and it estimates residential rates will fall
dramatically, back to the point where they started in 2011.

“This is good news,” said Catherine Engel Menendez, Peco’s spokeswoman.

The quarterly adjustments are a feature of electric deregulation that went
into effect this year for Peco customers.

The major factors behind the rise and fall of rates are seasonal fluctuations
in wholesale power prices that were invisible to customers under the old
fixed-rate system. The variations became noticeable after rate caps came off and
Peco’s rates were adjusted every three months.

The price fluctuations are exaggerated in the current quarter – up 7 percent
– because Peco is allowed to recover money it did not collect earlier this year
when wholesale prices were higher than expected. The state requires utilities to
reconcile under- or over-collections in the next quarter.

Peco’s quarterly price swings add a wrinkle to the process of shopping for an
alternative electric supplier.

Under Pennsylvania’s Electric Choice Act, customers are free to shop for
power suppliers, whose charges make up about two-thirds of the monthly bill.
(Peco still collects a distribution fee from all customers for using its wires,
regardless of who generates the electricity.)

Since rate caps were lifted, about 370,000 Peco customers have switched to
alternative suppliers. Some suppliers are currently ramping up marketing
campaigns to capture Peco customers, pointing out that their rates are
substantially less than Peco’s Oct. 1 rate of 11.14 cents per kilowatt-hour.

For instance, Constellation Energy Group Inc., a Maryland supplier, is
currently offering a 12-month fixed price of 9.98 cents per kilowatt-hour, which
it advertises is about 10 percent less than Peco’s price.

But customers who opt for Constellation’s fixed-rate contract could find they
will be paying slightly more than Peco customers after Jan. 1, when
Peco’s rate is projected to drop to 9.91 cents per kilowatt-hour.

Peco’s impending price decrease will create new challenges for suppliers as
they set their prices for next year, said Jossi Fritz-Mauer, codirector of the
Energy Cooperative of Pennsylvania, whose current rate is greater than Peco’s
projected price in January.

“The Energy Cooperative is still in the process of finalizing our prices for
2012, but this certainly presents a new dynamic for Peco customers looking to
shop,” said Fritz-Mauer.

Jennifer Kocher, the spokeswoman for the Pennsylvania Public Utility
Commission, said that customers were becoming increasingly sophisticated as the
markets mature and that more were switching in response to price changes.

She said the PUC advises customers contemplating a switch to compare prices
at the commission’s website.

“We would hope that anybody who is shopping would do their due diligence,”
she said.

Irwin “Sonny” Popowsky, Pennsylvania’s consumer advocate, said the price
fluctuations underscored the risks and rewards of locking into fixed-rate
contracts when market rates are high or low.

“Some suppliers are able to beat Peco’s rate, but perhaps not as much as they
did a year ago,” he said.

Indeed, Peco customers who locked in last December with suppliers offering
12-month fixed-rate deals of 8.89 cents per kilowatt-hour are currently paying
20 percent less than customers who stayed with the utility. For a customer using
500 kilowatt-hours a month, the monthly savings amount to about $11.20.

Not every Peco customer benefits by switching to an alternative supplier.

Alternative suppliers are still unable to beat the utility’s discounted rates
for about 160,000 residential heating customers and 80,000 customers with
electric water heaters, said Engel Menendez.

But those below-market rates are scheduled to be eliminated at the end of
2012, and the utility expects suppliers to begin courting those customers at the
end of next year.

Read more: http://www.philly.com/philly/business/20111011_Peco_predicts_a_drop_in_electric-power_price.html#ixzz1aUmhf6Ky

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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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PHILADELPHIA, May 14 /PRNewswire/ — PECO applauds the Pennsylvania Public Utility Commission for its recent steps to help customers manage the transition to market-based pricing in 2011 following the expiration of more than 10 years of rate stability provided by deregulation. Specifically, the Commission’s approval of final default service regulations will provide the framework for utilities like PECO who must purchase energy for customers who do not choose to receive electric supply from an independent energy marketer.

“We strongly support retail competition,” said Lisa Crutchfield, PECO senior vice president of Regulatory and External Affairs. “And, the Commission has done a good job of dealing with the transitional issues that will be critically important to our customers in the years to come.”

Specifically, the Commission’s actions today provide:

* The option for customers to defer some portion of a rate increase.

* The ability for utilities to purchase energy on behalf of customers in ways that are best for each individual service territory — for example, securing energy through staggered purchases and competitive auctions.

* $5 million in funding for a statewide consumer-education campaign

“Through deregulation, consumers in Pennsylvania have benefited from capped electricity rates. After adjusting for inflation, Pennsylvania consumers are currently paying 12 percent less for electricity than they did 10 years ago. The end of capped rates will mean that electricity rates will begin to rise to account for current market conditions,” said Crutchfield.

PECO’s current rates will remain the same until January 1, 2011. Until that time PECO will have the opportunity to address the effect potential price increases may have on customers by: ensuring the company secures the best prices for customers; and educating customers so they understand how the energy market will change and what action they can take.

The Company also looks forward to the Commission’s action on demand side response and energy efficiency. Expected later this month, these actions will be another important component to help customers manage their energy bills.

Contact: Cathy Engel
PECO
2301 Market Street, S14-1
Philadelphia, PA 19103
215-841-5555

Our perspective:

Deregulation has offered great opportunities for savings on the open market. It is still a little to early to determine just what opportunity exist. As soon as Peco releases a cost to compare, this will serve as a basis to make an objective decision.

Stay tuned, as we will continue to update you as more information is released. for more information email george@hbsadvantage.com or call 856-857-1230.

Excerps from 

Press Release Source: PECO On Wednesday June 23, 2010, 5:35 pm EDT

PHILADELPHIA–(BUSINESS WIRE)–In preparation for the final transition to a competitive electric market in Pennsylvania, PECO recently completed the third of four planned electricity purchases to serve customers who have not chosen a competitive electric generation supplier beginning Jan. 1, 2011.

Beginning January 1, 2011, the prices PECO and our customers pay for electricity will be based on electric market pricing, after having been capped for more than 10 years. At the same time costs to operate our electric systems also have been increasing. The effect of all of these changes on PECO electric customers will be price increases of about 10 percent. For the typical residential electric customer, the increase is about $8 more per month.

The May 2010 purchases resulted in an energy price of 7.95 cents per kilowatt hour (kWh) for PECO’s residential customers. When combined with 2009 purchases, the May purchases result in a price of 8.91 cents per kWh for PECO’s residential customers, 8.66 cents per kWh for small commercial customers, and 8.63 cents per kWh for medium sized commercial customers.

Because energy prices fluctuate, PECO is buying the electricity needed to serve customers in 2011 at four different times – reducing the risk to customers of purchasing electricity all at one time when market prices could be high. PECO will complete the remaining purchases in September 2010. The results of all four purchases will determine the exact price PECO’s customers will pay for electricity beginning Jan. 1, 2011.

“We continue to be able to purchase electricity at lower wholesale market prices, helping reduce the prices for our customers,” said Denis O’Brien, PECO president and CEO. “And we have programs available to help customers use less energy and save money.”

Our Perspective:

Now we’re getting there. As Peco begins to release information, we will be better able to determine what opportunities for savings exist in the deregulated market.

All we will need is a copy of your latest invoice and a letter of authorization, which allows us to request annual usages on your account from Peco.

HBS is an independent energy management company. We have been providing deregulated savings to our clients for over 10 years. We represent all the major providers looking to sell electric in the Peco territory.

We will define the right provider at the the right price.

To learn more email george@hbsadvantage.com or 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 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
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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.

Deregulation of electricity generation in Pennsylvania was approved in the PA General Assembly in December 1996. The primary impetus for the legislation was to open the electricity industry to competition, thereby enabling Pennsylvania residents, institutions, businesses and industries to buy electricity at lower costs. Originally the deregulation was to be completed statewide by Jan. 1, 2001. There have been numerous delays in this arduous process. Now the anticipated deadline for completion throughout the state is Dec. 31, 2010 for all investor-owned utility companies. The rural electric cooperatives and municipal-operated utility companies are exempted from this legislation.

Electricity rate caps (or price controls) were implemented by the PA Public Utility Commission (PUC) to ensure relative price stabilityduring the potentially tumultuous years leading to the complete deregulation of electricity generation. The price of electricity has remained nearly constant since 1996 with annual increases ranging from 0 to about 5 percent, while the prices of other sources of energy were skyrocketing. During this same period, customers were required to payeach month the tangible and intangible transition fees (also known as stranded investment fees) to compensate the utility companies as they transition to the deregulated environment.

PECO Customers

The balance of this article is geared specifically to those customers served by Philadelphia Electric Company (PECO), which includes all the mushroom farmers in Chester County. The information pertinent to PECO customers is similar (but not identical) to the information pertinent to customers of the other investor-owned utility companies throughout the state.

The rate caps for electricity that have kept the electricity prices fairly low expire when the deregulation of electricity is completedat the end of 2010. The customer’s responsibility to pay the transition fees also expires at the same time, thereby completing the deregulation of electricity generation. Then what?.

Each customer will have the opportunity to shop for a supplier of generated electricity. Generated electricity will become a commodity that can be purchased from any licensed supplier or broker that you choose. Whenever considering generated electricity, we need to think in terms of both energy (kWh) and capacity (kW). If a customer opts not to shop for an electricity supplier, then PECO will serve as the “default service supplier” or the “provider of last resort.” If your selected electricity generation supplier is ever unable to provide the electricity you need, PECO will supply you with electricity at the prevailing price.

The transmission and distribution of the electricity as well as local service will continue to be provided by PECO. It doesn’t matter which company you select as your electricity generation supplier; you will remain a customer of PECO for distribution and local services. PECO will be responsible for providing line maintenance, restoring service after storms and accidents and providing on-going customer services including billing. These functions will remain regulated by the PUC for the foreseeable future.

Rate Design Changes

There will be numerous changes in the PECO rate designs. The familiar rate features listed below will be eliminated for generated electricity (energy and capacity) for all commercial and industrial customers starting the first of the year 2011. However, the rate features listed below will be retained for transmission and distribution.

* Demand ratchet * Winter heating rate

* Night service rider * Construction rider

* Interruptible rates * Curtailment rider

* Economic incentive & competitive alternative riders * Several other less-used features

The rate features of declining block rate structures and demand charges will be phase]d out over the three-year period 2011-2013 for generated electricity but will be retained for transmission and distribution.

What are your options for buying generated electricity? For the medium-sized customer (with kW demand greater than 100 kW but less than500 kW), the options are:

* Contract with a licensed retail supplier * Obtain default services from PECO at a flat, fixed rate of x cents per kWh.

For the large customer (demand greater than 500 kW), the options are:

* Contract with a licensed retail supplier * Obtain default services from PECO at day-ahead hourly prices

* Obtain default services from PECO at a flat, fixed rate of x cents per kWh. (this option available just for 2011.)

It does not matter what size customer you are, your most importantactivity to get lower prices for electricity is to manage your peak demand. An indicator of how well you are managing peak demand is the load factor. Next month’s article will focus specifically on load factor and how you can manage it to get electricity at lower prices.

You have 6 months to prepare for the deregulation of electricity. Take advantage of this lead-time. Start your homework now!

Brief Definitions

Demand: Unit of electrical power, expressed in kilowatts (kW).

Distribution: Delivery of electricity from the substation to the retail customers.

Generation: Production of electricity at a power plant or on-site facility.

Investor-Owned Utility: A utility company owned and operated by private investors.

Load Factor: Relationship of peak demand (kW) to electricity usage(kWh).

Peak Demand: Maximum amount of electrical power (kW) used over a 30-minute interval in the billing period.

Public Utility Commission (PUC): Pennsylvania regulatory agency that provides oversight, policy guidance, and direction to electric public utilities as well as other public utilities.

Transmission: Transport of high voltage electricity from the generation plant to substations.

Dennis E. Buffington Professor

Dept. of Agricultural & Biological Engineering Penn State University

Our Perspective:

Hutchinson Business Solutions is an independent energy management consultant. We have been providing deregulated energy saving solutions to our clients for over 10 years. To learn more about the the deregulated savings opportunities for your business email george@hbsadvantage.com or call 856-857-1230.