How to find the Best Electricity Plan in Pennsylvania
In the emerging Pennsylvania electricity market energy plans can be custom designed to fit your unique needs. With so many choices finding the right plan can be overwhelming. This article is a quick guide to the different types of electricity plans and providers now serving Pennsylvanians.
Understanding the basic types of plans will help you to get the best bang for your buck. There are three types of electricity plans; fixed, variable, and time-of-day rates. With a fixed rate the price of electricity will remain the same throughout the contract. Not shopping will automatically place you on your current utilities fixed rate (an exception is large industry where the default rate is volatile hourly pricing).
A variable rate changes with the electricity market month to month. This plan takes advantage of price dips but can also result in short term price hikes.
Finally, Time-of-Use rates are based on normal daily price fluctuations. When there is a high demand for power, called peak hours, electricity costs more. With this type of plan, you can save money by concentrating your electricity use during low demand periods or outside of regular business hours. This form of pricing is ideal for consumers who can shift their electricity use with few consequences. A basic example is a resident who decides to do laundry in the evening instead of the middle of the day.
There is a fourth type of electricity plan where you can incorporate renewable energy. Each month an additional charge will be added to your monthly bill to support the use of more expensive renewable energy like wind and solar. This option is attractive for businesses and individuals who highly value being green. Renewable options did not exist under regulation and utility’s one-size-fits-all electricity plans.
In addition to different types of plans Pennsylvanians can also choose different types of alternative providers. Businesses and residents have three options: they may switch directly to a new generator, use a professional consultant or broker, or join an electricity pool (aggregation) provided by a membership organization. You can find and compare providers in your region by going to ElectricChoice.com.
· Alternative generators produce the electricity you will use- in this way you get your power directly from the source.
· Energy consultants or brokers seek out the best deal for you. Consultants often provide more individualized service, including energy audits that can reduce current consumption through increasing efficiency and/or altering usage patterns, but it is important to understand the terms of the contract and fees before entering into a contract.
· Member organizations provide a variety of options. Pools are non-profit entities that bring businesses together to create more purchasing power in order to secure cheaper rates for their members. If you are a member of the local chamber or another organization contact them for details. The opportunities associated with pooling continue to grow in innovative ways. In central Pennsylvania (PPL territory), people who work at stores or businesses supplied by through the ChamberChoice pool can sign up for lower-priced power at home because of the aggregated deal made by ChamberChoice.
Everyone’s electricity use is different but under regulation it was impossible to find an electricity plan tailored to their needs. With the onset of deregulation, alternative suppliers and consultants are now free to negotiate pricing options based on your tolerance for risk and ability to adjust energy usage according to market prices. So go ahead and take advantage of the freedom to build your own plan.
Tags: ChamberChoice, electric choice pa, PA Electric Choice, Pennsylvania Electricity
