PECO in Philadelphia
Philadelphia is going through their first summer as a full functioning energy choice market. In the past, nearly all Philadelphia citizens were forced to use PECO Energy as their electricity supplier. The Pennsylvania Electricity Choice law unbundled PECO from being the sole electricity company for both generation supply and power delivery, to just the company who delivers power to their 1.6 million customers.
For those electricity consumers in Philadelphia who do not choose an alternative energy supplier, PECO provides a default electricity generation supply rate known as the PECO Price to Compare. The PECO Price to Compare is determined by a series of auctions held by PECO for competitive electricity supplier companies. PECO then passes on the revenues obtained for the default rate payers to the winning bidders. This is information that is not known by many Philadelphia energy customers. Many PECO customers do not want to switch electric suppliers because they wish to remain loyal to PECO. However this thinking does not make sense in the new Pennsylvania electricity choice landscape. PECO makes money by delivering power to their customers, and their customers remain PECO customers for power delivery no matter which electric supplier they choose. PECO energy does not care if their customers choose alternative electricity suppliers because they do not profit form the electricity supply portion of the electric bill (generation and transmission charges). Electricity prices in PECO are providing customers with huge savings on their electric bills, in addition to locking in rates that can protect customers from expected rate increases later this year and next.
PECO in Philadelphia is the regulated electric utility company. The company PECO may own generation facilities and even sell competitive electricity in other markets. However, in Philadelphia the PA Choice law prohibits them from being involved in offering competitive electric rates, so they really do not care if their customers shop for lower electricity prices.
Here are current PECO competitive rates:
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