Pennsylvania Electricity Rates – Electric Choice

Pennsylvania Electricity Rates

Pennsylvania Electricity RatesYou have the power to switch electric companies in Pennsylvania.

Live in Pennsylvania and want to see if you can save money on your electric bill by switching to a new electric company? Click here to get quotes from local companies in seconds.

Pennsylvania was one of the first states to offer consumers the power to switch and choose their electric company through electric deregulation.  The first legislation for the state of Pennsylvania’s electricity market to be deregulated was passed in December, 1996, making it one of the earliest in the nation to adopt deregulation. Prior to this legislation, the whole state of Pennsylvania was entirely regulated. In this previous regulated environment, it is estimated that Pennsylvanians spent about $10 billion on electricity in 1995.

Electricity Rates for Pennsylvania Cities

Electric Choice offers electricity quotes for customers located in, but not limited to, the following major cities and areas in Pennsylvania:  Atloona, Bethlehem, Chester, Easton, Erie, Harrisburg, Lancaster, Philadelphia, Pittsburgh, Reading, and Scranton.

Electricity Deregulation in Pennsylvania

As with most deregulation plans, the goal in Pennsylvania was and is to eliminate monopolies held by electric utilities and create a competitive environment for electricity. The benefit for the consumers and business owners is the freedom of choice among electric providers, along with lower electricity rates (driven down by competition).

By giving consumers in PA the power to switch electricity companies, providers are encouraged to offer lower electricity rates, better service, etc. to compete for and gain customers.

Deregulation = Lower Electricity Rates in Pennsylvania

Prior to deregulation, Pennsylvanians were paying about 15% above the national average electricity rate for their power. That statistic would soon see a favorable decline, not long after the passing of House Bill 1509 in 1996.  Also called the “Electricity Generation Customer Choice and Competition Act”, House Bill 1509 became the first stepping stone to a deregulated market in Pennsylvania. In the summer of 1997, parts of the PA power market became deregulated, allowing Pennsylvanians their own choice of Electric Generation Supplier (EGS).

Over the next 13 years, Pennsylvania expanded deregulation to territories statewide, spurring greater competition while the PA energy industry adapted to market-based rate systems. These progressive years saw a strong response from commercial and industrial customers to switch suppliers, while residential customers adopted electric choice more gradually.

Pennsylvania Electricity Rates – 2014, 2015 and Beyond

Nearly all of Pennsylvania is now deregulated and customers have begun to reap the benefits. At the end of the third quarter in 2010, Pennsylvania electric rates were only slightly higher than the national average, but well below averages for other Mid-Atlantic states in the region.