3-On Your Side: Shopping Electricity Rates
PHILADELPHIA (CBS) - With the New Year comes new ways for many to save on their electric bills. Rate caps in Southeastern Pennsylvania expired at the end of 2010 and that means consumers have more options. 1.6 million PECO customers now have the ability to get their power from other companies. 3-On Your Side Consumer Reporter Jim Donovan explains.
First things first, don't panic! In fact if you don't want to do anything, you don't have to. But if you're looking to save some money this year, you probably can. 20,000 PECO customers made some changes, and you may want to as well.
While PECO will still deliver your power, send out your bill, and maintain your lines, you can now pick a company that you want to generate your electricity. www.papowerswitch.com is a state web site that allows you to compare the 17 companies now vying for business.
First you need to compare the price, which is based on kilowatt hour. Through March, PECO is charging 9.92 cents per kilowatt hour. Other companies are offering to charge less. Con Edison Solutions rate comes up as 8.89 cents, Dominion Energy Solutions lists a rate of 8.92 cents.
Switching to one of those companies could save the average customer $7 or $8 a month.
Then you want to look at the length of the contract.
Sonny Popowsky, Pennsylvania Consumer Advocate says, "Some of these contracts you can leave at any time with no penalty, others are longer term where you lock in a price for a year, two years, or maybe three years and you may have to pay an early termination fee, just like you would with any other contract that you sign for a period of years. If you want to get out of it, you may have to pay a fee."
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Reported By: Jim Donovan, CBS 3
