Monday, March 20, 2023

PUC Strongly Encourages Customers To Explore Electric Shopping Options To Help Reduce Size Of Utility Bills

On March 20, the
Public Utility Commission strongly encourages residents across Pennsylvania to #SaveInPA – exploring electric power shopping options which could result in substantial savings on the energy portion of their monthly electric bills, especially during high-usage times.

After an extended period of rising energy prices, offers from competitive suppliers in many parts of the state can now be found at well below the electric generation price currently available from many utilities. 

Because energy costs typically make up more than half a total utility bill, lower energy prices can have a noticeable impact on the size of monthly bills.

[Note: In a March 19, 2023 guest essay at PA Capital-Star, Patrick Cicero, Consumer Advocate of PA, and Terrance Fitzpatrick, Energy Association of PA, highlighted increases in energy costs in both electricity and natural gas utility bills, including the fact that wholesale electricity and natural gas market prices tripled from early 2021 and fall of 2022 and also recommended energy supplier shopping.  Read more here.

[The PUC warned electricity and natural gas consumers several times of multiple price increases starting in June 2021 (electricity), November 2021 (electricity), May 2022 (electricity, natural gas), August 2022 (electricity), August 2022 (natural gas), and November 2022 (electricity, natural gas).]

Millions Of PA Consumers Could Save

According to data compiled by the PUC’s website, more than 3.9 million residential customers across Pennsylvania could #SaveInPA – cutting the size of their monthly bills by using competitive electric suppliers. 

That figure is in addition to the 1.2 million residential customers in Pennsylvania who currently shop for their electric supply. 

Also, the same data from PAPowerSwitch indicates that a typical residential customer in Pennsylvania could save between $2 and $49 per month on their electric bill, based on a survey of supplier offers currently posted on PAPowerSwitch (for a residential customer using 700 kwh of electricity per month).

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Where Can I Save And How Much?

According to a recent sampling of supplier offers posted on the PUC’s electric shopping website – – there are substantial #SaveInPA benefits for consumer energy costs, depending on their utility service territory.

The Commission noted that the greatest potential savings – ranging from 21% to nearly 49% – are currently available in the service territories for PPL, PECO, and Duquesne Light (subject to changes in market prices).  

Collectively, those utilities serve many of the state’s largest communities, including Philadelphia and Pittsburgh, along with many of their suburbs, as well as Allentown, Bethlehem, Harrisburg, Lancaster, and Scranton. 

The top service territories where short term (three month, fixed rate, with no added fees) and long term (12 month or longer, fixed rate, with no added fees) supplier offers are substantially below the utility generation rate are--

-- PPL – Supplier prices are as much as 37% lower for long term contracts and nearly 49% lower for short term contracts.

-- Duquesne Light – Supplier prices are as much as 21% lower for long term contracts and 36% lower for short term contracts.

-- PECO – Supplier prices are as much as 21% lower for long term contracts and 31% lower for long term contracts.

In each of these areas, potential savings are large enough to make a very noticeable impact in monthly electric bills. Elsewhere across the state, prices vary between suppliers and region, but average savings are still considerable:

-- The average short-term savings is 24%.

-- The average long-term savings is 15%.

The largest savings are typically available in the areas where current utility generation prices are the highest, especially the PPL service territory, but not all offers are available in all service territories.

Key Points About Energy Shopping In 2023

The Commission emphasized the following about the current energy shopping market:

-- In general, the more energy a household uses, the more quickly small changes in energy prices will convert into large dollar savings on monthly bills.

-- When energy prices are falling, competitive suppliers are often able to more quickly respond and may be able to offer lower energy prices than utilities – but global energy markets remain volatile so prices can also move upward if circumstances change.

-- Temperature has a major impact on energy usage, which can also drive total energy bills up or down, so consumers should continue monitoring their energy usage and explore how efficiency and conservation can help manage energy bills.

Additionally, the Commission stressed that individual consumers could have vastly different goals for energy shopping--

-- Some residents may be looking for the absolute lowest price, which generally involves short term contracts and may include variable prices – requiring more frequent shopping and closely monitoring prices.

-- Others may look for the stability of longer-term contracts with a fixed price, so they can better plan their energy expenses.

-- Consumers may want to explore supply offers that support solar, wind, or other renewable power generation.

-- Some shoppers may find value in other incentives offered by energy suppliers or use a supplier that offers other services – like heating system maintenance.

What Is Electric Shopping?

In most areas of Pennsylvania, residents can choose who supplies their electricity, based on price or other factors. For consumers who do not shop for competitive suppliers, the state’s electric utilities obtain power on their behalf. This is known as the “Price to Compare” (PTC) and can be used as a baseline to compare with offers from competitive suppliers.

Utilities reset their PTCs two to four times per year, using a procurement process overseen by the PUC. The electric utility in effect “shops” for those customers, and energy costs are passed along to all non-shopping customers. 

By law, utilities cannot make a profit on electric generation, as generation costs are simply passed through to utility customers.

It is important to note that these energy generation prices are separate from the closely regulated rates that utilities charge for their distribution services – the delivery of electricity to homes.

How Can I Shop?

Consumers can use the PUC’s PAPowerSwitch energy shopping website to explore and compare other offers from competitive energy suppliers which may provide savings compared to their utility’s default service rate. 

The website provides consumers with valuable information on how to shop for electric supply services – enabling consumers to quickly compare offers from competitive suppliers against the default service rate from their local utility and learn more on switching to a competitive supplier, or returning to default service, should they choose.

Another alternative for default service customers not participating in the competitive electricity market may be their utility’s voluntary Standard Offer Program (Standard Offer) – providing those customers with the option of receiving service from a competitive supplier at a fixed price that is 7% below the utility’s current PTC. 

The Standard Offer price is fixed for one year and can be canceled by the customer at any time with no early cancellation or termination fees.

Note: The Standard Offer Program may not be always available in all utility service territories.  Consumers should contact their utility or visit their utility’s website for more information or to enroll in an SOP program.

What Should I Look For?

It is important for every utility customer to understand what they are paying for electric generation supply, either through default service from their electric utility or a contract with a competitive energy generation supplier.

Key questions to ask include--

-- How do competitive suppliers’ rates compare with the utility’s Price to Compare?

-- Is the supplier contract for a fixed or variable rate – and if the rate is variable, what are the conditions of changes in the price for electricity?

-- Does the contract provide for additional fees – such as an enrollment fee or early contract termination fees?

-- When will the contract expire – and what are the options for consumers as the contract end date approaches?

Consumers are advised not to sign a contract without knowing the length of the contract, the price, whether it is fixed or variable and if there are any fees. Information on fixed and variable electric rates is available on the PUC’s PAPowerSwitch website.

Consumers who have questions or disputes may contact the PUC’s Bureau of Consumer Services at 1-800-692-7380.  More information on understanding a contract with an electric generation supplier and electric switching can be found on

Click Here for related videos from complete announcement.


-- PA Capital-Star Guest Essay: Why Your Electric/Natural Gas Utility Bill Has Gone Up And What You Can Do About It - By Patrick Cicero, Consumer Advocate Of PA, Terrance Fitzpatrick, Energy Assn. Of PA  [Natural Gas Prices Tripled]

-- Wall Street Journal: Why Natural Gas Bills Are Going Crazy, With No End In Sight

-- Utility Dive: Lower Natural Gas Prices In 2023 Will Lead To ‘Plunge’ In Peak Electricity Prices In Most U.S. Markets. According To Moody’s Investors Services

Related Stories - Natural Gas/Electricity Utility Increases:

-- PUC Approves 48.9% Increase In Natural Gas Charges By Leatherstocking Gas Company In Susquehanna & Bradford Counties-- The Heart Of Shale Gas Drilling In PA  [2.23]

-- PUC Alerts Consumers Utility Natural Gas Costs Will Be Going Up By As Much As 128%, Electric Costs Will Be Going Up By As Much As 34%; Both Driven By Cost Of Natural Gas On World Markets [11.22]

-- PUC Approves 9% Increase In The Basic Monthly Bill For Typical PECO Natural Gas Division Customers; On Top Of An 103.2% Increase In Cost Of Natural Gas [10.22]

-- PA PUC: Cost Of Natural Gas Provided By Major Utilities In PA Increased As Much As 154% Over Last Year  [8.22]

-- PUC: 4 Major Electric Utilities Have Double Digit Electric Price Increases Coming Sept. 1 Caused By Spike In Natural Gas, Energy Costs, Hot Weather   [8.22]

-- PUC Alerts Electric Customers Prices To Compare Going Up June 1 Between 16.1% And 44.6% Due To Rise In Natural Gas Prices  [5.22]

-- PUC: Electric Utilities To Increase Cost Of Electricity They Provide To Non-Shopping Customers Dec. 1, Some As High As 50%; Increases Driven By Price Of Natural Gas [11.21]

-- PUC: Electric Utility Prices To Compare Increase Up To 30 Percent June 1, Urges Customers To Shop For Better Rates  [6.21]

[Posted: March 20, 2023]  PA Environment Digest

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