Electricity customers in certain parts of the country are experiencing the benefits of electricity deregulation and choice. The summer of 2011 is the first summer that millions of customers have the option to shop in their state for lower electric rates versus their utility default rate. People living in Texas, Pennsylvania, New Jersey, New York, Illinois, Connecticut, and Maryland are finding cost relief on their high summer electric bills.
The power market in Texas was deregulated in 2002 an almost immediately competitive electric companies started to market their services to residential customers. Customers were slow to switch electric suppliers during the first couple of years because of their unfamiliarity of the electricity choice laws. However, five years into the passing of the deregulation law and 58% of the eligible Texas electric residential customers had switched electric suppliers at least once. Many continue to be active electricity shoppers, keeping track of when their contracts expire and signing new ones in order to avoid being placed on default service rates that are often high. Many customers have not shopped for competitive rates in some time and can significantly lower their electric bills by taking the time to compare Texas electric rates.
In Pennsylvania, customers of PECO energy are able to perform electric rate comparisons for the first time. Competitive Pennsylvania electric rates are yielding savings up to 18% off of the PECO default rate. Already close to 20% of the PECO market, which includes Philadelphia power customers, have switched electricity from default rates to competitive energy offers. PPL energy customers, in their second year of electric choice, also have dozens of electric companies to choose from. Close to 40% of PPL energy customers have switched electric suppliers. New Jersey electric rates are showing similar results with 18% savings in PSEG and 10% savings in JCPL.
Customers of ComEd in Chicago and BGE in Baltimore and surrounding Maryland communities are seeing an abundance of electricity choice options for the first time despite being part of states that have had deregulated energy markets for nearly the past decade. Illinois electricity choice has provided options and savings to small businesses throughout the state since 2007. However, electric companies were slow to start offering competitive offers to residential customers due to the low default rates that they were paying. Now that savings are available, electric companies have started offering rate options to ComEd customers and are providing savings up to 17% against ComEd residential default rates. Maryland electricity has a similar story as electric suppliers have been selling to businesses in the state since 2004. An uncertain political environment and low default rates kept residential suppliers out of Maryland. However, now that default rates have become higher and the state has started to show more support for electric choice, competitive electric suppliers are offering BGE customers up to 15% savings versus their summer Baltimore Gas and Electric default rates.