For some Pennsylvanians all this talk of rate caps expiring and shopping for electricity is old hat. Most folks in central Pennsylvania and Pittsburgh already experienced the transition, some last year and some almost a decade ago. Of course, many have still not bothered to shop and in the process ignored substantial savings, but as the transition period for the state comes to a close there is another element that will significantly affect consumer savings- quarterly rate adjustments. Understanding this development will better inform today?s energy decisions.

Hundreds of newspapers and media outlets throughout Pennsylvania have featured stories on electric choice, explaining the basics, including the rate caps and the price-to-compare, but shopping for electricity is not a onetime deal. Beginning this year, the price-to-compare in each region may adjust every quarter. In other words, what may be a 10% discount off the price-to-compare in January may drop to a 5% discount in March.

The reason for quarterly price adjustments is to more closely reflect the real cost of power- electricity is a commodity and the prices of commodities change throughout the year. Increased demand, usually the result of economic growth, can make electricity more expensive, just like frosts in Florida can ruin crops and increase the price of oranges.

On the surface this new element may seem like an inconvenience- but it is actually a good thing for the consumer. Most small businesses and residents prefer fixed rates over a plan that varies with the market every month. These fixed rate plans will still be available. Some fixed rates last up to two years- meaning the average Joe will only need to compare prices every year or two. In the meantime, the quarterly adjustments will put pressure on the competitive providers to lower prices if electricity becomes cheaper, while those with contracts are protected from rate increases.

On the other hand, if you find yourself locked into a higher rate you have the option of switching again. There is no limit to the number of times a customer can switch. The only disadvantage to switching is cancellation fees that may be assessed by your current supplier.

To switch from one competitive generation supplier to another, simply contact the company you would like to switch to and they will contact your current generation provider. You will receive confirmation in the mail and there is a 10 day period to change your mind until the switch is final. If you have an energy broker, marketer, or consultant, check your contract to ensure the same rules apply.

When you consider the 20^th century, it is amazing how much control Pennsylvania consumers have gained. In just the past 50 years, they have accrued the power to choose their own long-distance provider and now cell phone company, natural gas provider, cable company, and electricity provider.  As the electricity market continues to develop consumers will gain even more control over their energy use.