Among the New Year’s resolutions being tossed around as we kick off 2011, Pennsylvanians should consider ?Pay less for electricity? as one of the most important. Because of the recent advent of electric deregulation in PA, consumers and business owners now have the right to choose their electric generation supplier (or ‘EGS’).
Before deregulation, citizens in PA were obliged to receive service from their designated utility company and simply had no control over the rates and charges appearing on their bills. Now that the energy monopolies have been dissolved and the various electric suppliers are competing in the fledgling retail electric market, consumers and businesses are enjoying a new level of control over their Pennsylvania electricity prices and service.
Electric choice in PA s still quite a fresh concept, although other states (such as Texas) have already paved the way for deregulated energy markets. Therefore, while the citizens of any state undergoing deregulation should learn about the process, it is helpful to observe the trends and benefits being realized in regions where the concept is not so new.
Now that Pennsylvanians can shop for electricity much like they would for any other similar service, it is crucial to understand exactly what variables to compare between the competing electric suppliers. Electric delivery and transportation charges won’t change much from the previous arrangement, and these are assessed by the utility for the actual transmission of electricity and your meter itself.
So let’s take a look at the factors you should consider when comparing electric suppliers in PA:
*The Price to Compare ? Commonly called ?PTC?, the price to compare is the actual price for electricity, by kilowatt-hour (kwh) that the supplier charges for electricity. It’s usually pennies per hour, where fractions of pennies also come into play, such as ?9.8 cents per kwh?. The lower, the better.
*Contracts ? Check to see what type of contract the supplier requires, how long they will ‘lock you in’ and what type of penalties apply in given situations. Seek out the fairest, least infringing contract.
*Fixed vs. Variable Rate ? Many suppliers offer both fixed and variable rate plans. Fixed rates offer the security of paying the same rate throughout the length of your term, while variable rates keep you out of a contract but fluctuate greatly. Try to get a fair, low-rate fixed plan.
*Reliability & Loyalty ? Like any other service you employ, make sure you’re using a trusted, reliable company that exhibits customer appreciation, loyalty and rewards.
*Customer Service ? Customer service in the energy industry has become incredibly important as retail electricity markets have grown in the past two years. Consumers are placing more and more weight to the way their utility companies handle their concerns, and rightly so.
Many great comparison websites exist to help you through your PA Power Switch.