The PECO electric utility is responsible for delivering power to over 1.6 million consumers of electricity. For the first time these customers have a reason to shop for electricity prices thanks to the Pennsylvania Electricity Choice law. Both business and residential power customers are finding savings on their energy bills by shopping for competitive electric rates.
Customers who do not perform their energy shopping pay a default rate that is charged on the PECO electric bill. However the profits from the default rate are transferred from PECO to electricity companies who have won auctions held by the State to serve default customers. Selecting a alternative electric company’s lower price simply replaces the default rate on the PECO bill. Due to the fact that PECO does not profit from the generation default rates, they do not care if their customers shop for lower electricity prices. PECO Energy receives their revenues and profits from the electricity delivery rates on the bill which are charges that remain regulated by the Pennsylvania Public Utility Commission.
Competitive electricity companies have moved to the PECO market quickly in recent months because of the large savings that they can offer customers. Residential customers can lower their electric bills by up to 20% by doing their energy shopping, and small business can expect similar savings. Electric choice is working throughout Pennsylvania as customers have options of who to buy their power from, different rate structures, and different generation sources.