Save Money on Electricity Bills. Get Cow Manure?

And if all else fails, try cow manure. According to writer Jim Hook, three Franklin County, PA farmers have agreed to join a program that will determine whether it's economical for smaller dairy farms to produce electricity from cow manure.

• "If we can get a return on the top end of the cow instead of the bottom end, I'll try it," Jack Martin said. He won't get a check from Allegheny Power, but will get credit on his farms' electric bills. Mason Dixon Farms, south of Gettysburg, PA., has produced electricity from methane digestion since 1979. The family farm has about 2,300 cows. 
• Martin has a 225-cow herd that should grow to 250 before the end of 10-year manure-to-energy trial. "If you didn't have between a 700- and 800-cow dairy, you couldn't even consider it," Martin said.
• NativeEnergy of South Burlington, Vt., was awarded a $894,000 competitive grant from the Pennsylvania Department of Environmental Protection to develop a pilot project for smaller farms.

PECO's 5% Electricty Bill Increase

"PECO Sees 5% Price Hike," reports the Bucks County (PA) Courier Times. Here are some highlights:

• Pennsylvania utility customers, for the past decade, have been protected by "rate caps" on what they're charged for be charged for electricity.
• Before electric deregulation reached PPL customers, last year, the utility's 30-percent rate hike prediction sent "thousands of Upper Bucks County residents scurrying to find a better deal"
• Now it's PECO's turn, but the market has changed to a competitive one. So instead of a 30-percent hike, the utility estimates a 5-percent jump, a smaller jolt to consumers that could result in fewer switches. 
• "I think consumer interest was greater in the PPL area last year because they knew they were facing a 30 percent rate increase," said Pennsylvania Consumer Advocate Sonny Popowsky.
• Still, according to the article, PECO spokeswoman Cathy Engel said about 20,000 of PECO's 1.6 million electric customers have gone to a new supplier so far - about 1.25 percent. By Christmas 2009, 8 percent of PPL's customer base had switched.  
• About 15 companies have rolled out plans targeting PECO customers. They include ConEdison Solutions, BlueStar Energy Solutions, Gateway Energy Services and Stream Energy.
• PECO confirms it will be the utility company that delivers the power to homes regardless of who generates it. "We're still the delivery company," she said. "We want people to make the choice that makes the most sense for their energy circumstance. But they'll still call us if there's a storm and their power goes out."
• Both Popowsky's Office of the Consumer Advocate and the Pennsylvania Public Utility Commission set up websites to help people compare rates offered by various utility companies. The sites also provide contact information for each power company. The state-run Office of the Consumer Advocate site is www.oca.state.pa.us. The PUC's site is www.papowerswitch.com. 

Bottom line: PPL customers had more motivation, but PECO customers may still save, if they shop wisely and understand that the choice does not risk what happens with emergency service. Most, I'd predict, will remain with PECO because of "fear, uncertainty and doubt." However the savvy shoppers are going to explore the options. I hope this blog helps take you to credible, objective places to inform your decision. Again as a disclaimer, I'm representing Stream Energy, so I'm not without bias. But whether you sign up with Stream (links in sidebar) or not, please keep yourself informed!

Electricity Choice Online Resource (PA State)

Another nice resource for learning about electricity choice in Pennsylvania: a state website called "Pennsylvania Utility Choice," and here's a link to the electricity page.

The site contains a lot of resources including information on how to shop, questions to ask, and even information for low-income Pa residents. 

J.D. Powers Ranks Leading Electricity Providers

The results are in... The independent firm, J.D. Powers & Associates, ranked "retail electric providers" this week (December 1, 2010), and gave top ranks to the company I've chosen (Stream Energy). The criteria for the customer-feedback ranking were: price; billing and payment; communications; and customer service.

While energy deregulation is new to Pennsylvania, Stream is one of the leading providers in Texas  where the study was conducted. Here are the rankings/scores of the providers:

1. GEXA Energy Corporation: 681.5
2. Stream Energy:676.5
3. Direct Energy: 631.3
4. Industry Average: 629.3
5. Reliant Energy: 621.3
6. TXU Energy: 599.2

To watch a video about saving with Stream Energy, click here and sign up if you're in PA. If you're interested in spreading the word (saving people money while you earn a secondary income), visit IgniteInc.com here. 

Stream is kicking off its Pennsylvania launch tomorrow (December 4, 2010), and you would be among the first in the state to introduce Stream Energy via Ignite Inc., with a team full of people helping you. Please be mindful of the fact that a) energy is energy, b) PECO still provides billing and emergency services, and c) unlike other "get rich quick" nonsense, electricity is a necessity an annuity. I'm excited to help people save money while I collect income what some of these other companies are wasting on advertising. Do we really need another piece of junk mail about energy deregulation? :)

Or if you'd prefer, leave me a message here or write me at:

7 Ways to Save Money on Pennsylvania Electric Bills (without choosing a new provider)

By now hopefully you're considering new "electric distribution company" (EDC) or "electric generation supplier" (EGS) (see explanation) to reduce your electrical bill from one PECO is charging you now (and avoid the rate hikes ahead).

But nothing beats being smart about how you conserve your energy, and here's where small steps can mean a lot. Some tips courtesy of PA Power Switch, which you've no doubt heard about on television and radio advertisements. 

1. Seal leaks and weather strip doors. You're probably heating the planet through those cracks beneath doors or poorly-insulated windows.
2. Do you have a water heater in your basement? Drop it to 120 degrees, and save money and reduce the chance you might burn yourself or a child. 
3. Move furniture away from vents. My parents used to get furious when I'd place my file cabinet over my vent, which causes the air conditioning or heater to work overtime.
4. Get an inexpensive thermostat at Home Depot or Sears. They're surprisingly easy to replace, and they'll save you the task of changing your upstairs and downstairs temperature as part of your morning or night-time ritual.
5. Pay attention to appliances that run very hot or cold. They're usually spinning your meter, and we often leave things (coffee makers, fridges) running when we don't need them.
6. Don't underestimate the power of energy-saving bulbs. They're cute, last longer, and save significant dollars over their lifetime. They aren't always as bright, so you may need more of them running. 
7. Finally, consider updating some appliances. A fuel efficient drier or heater can drop your bill significantly.

Now stay warm, and keep the heat to yourself. We don't need any more global warming because your heat is slipping out doors, windows and attics. And sometimes spending on a new appliance is a long-term money saver. Plus that toaster oven probably has some crumbs in it from 1998.

Energy Deregulation 101 (Video)

This is a fairly simple and educational video -- even if it's a bit cheesy, repetitive and posted by someone selling a service. It explains how deregulation in Pennsylvania electricity creates competition. That competition provides a market (you and your neighbors) with better pricing and service.

Some myths it dispels:

• The electricity from another provider will be different from PECO (wrong)
• Service to the home will be different (nope- PECO still services your home and neighborhood)
• Quality of electricity will be different based on price or provider (for instance when you buy a Panasonic camera from Amazon.com or a high-end electronics store, it's still the same camera).

Idiot's Guide to Picking an Electricity Provider

The PA Power Switch price has a handy downloadable PDF file that can help you simplify your options beyond PECO. Check out the "Energy Shopping Worksheet (links to PDF)" for some tips. Here are some key questions for your potential provider. Remember that adding a new electricity provider in Pennsylvania does not mean that you lose PECO for service and billing. It just prevents you from paying the increase ~5% in rates, and gives you more options (just like your telecommunications or television providers).

In Pennsylvania, you will most likely keep PECO for electricity service issues (power outages) and billing, but you can also choose an "electric distribution company" (EDC) also known as an "electric generation supplier" (EGS).

Some questions to consider (see also the image below).

• Are they licensed by Pennsylvania Utility Company (that's why it's important to check PAPowerSwitch.com).
• What are the length and other terms in the agreement?
• What's the "price to compare" and how long is that effective? 
• Is it a "fixed" or "variable" contract? (see my post on the difference between the two)
• Is there a penalty for canceling or terminating an agreement? 
• What are the steps to switch providers?
• Will I receive one bill or two? 

Tips for Alternative Energy Savings

Here's a Pennsylvania Public Utility document that provides information on how to benefit from "alternative energy credits" (AEC).

Through the Alternative Energy Portfolio Standards Act (AEPS), you can benefit from environmentally friendly and alternative energy methods. Those include solar panels, fuel cells or biodigesters... and solar, wind, hydropower, geothermal, biomass, and demand side management resources.

I'm not sure if I can fit a wind mill in my front yard, but if you know about little ones for the roof... let me know! My dad installed solar panels on our house when I was rather young, and if it wasn't cost prohibitive (and it saved me money) I'd love to be more environmentally friendly.

Fixed Versus Variable Electricity Contract: Simplified

The implementation of energy deregulation in PA (and other states like Texas and Atlanta) gives the power to select a "Retail Electric Provider" (provider) or electric company that services and facilitates our supply of electricity. However it also provides us with the option to choose our preferred choice of electricity plans. In Pennsylvania, which was recently deregulated, we can choose between a variable and a fixed rate plan. This can be confusing, and I hope to simplify the choice (fixed versus variable).

The atmosphere created by energy-deregulation competition gives those of us in the PA electricity market prompted various payment models and rate plans to fit their preference and capacity needs.It can be a daunting task, so in addition to visiting PA Power Switch and reading this blog, I strongly encourage you to speak with friends and family. Making a wrong decision (like a long-term, binding fixed-fee contract) could have considerable negative repercussions on our electricity bills. See also this eZine article which was an important resource to this post.

Simply put, we Pennsylvanians can now decide whether we prefer a generally higher “fixed” plan, or the ability to enjoy the lower prices when electricity prices are down (but potentially pay higher fees when they are high). Fixed means you may leave "money on the table," but don't have to worry about switching providers if the Kwh (rate per kilowatt hour) increases. Now here's an "executive summary" on the difference between fixed and variable electricity. Please check the merits of each option so you make the right decision for your and your household.

What is a Fixed Electricity Plan?

The term "fixed" means something that is constant or unchanging. In terms of electricity plans, a fixed-rate plan means your rates are locked or fixed for a certain period (for instance, 6 months to 2 years) as agreed upon by you and your Pennsylvania electric retail provider. The agreement is bound by a contract between these two parties, and we consumers are guaranteed to pay only the same rate per KWh of electricity usage. I personally don’t like this model because I am counting on lower rates with more competition. I also don’t want to lock myself into one provider (which is why I chose Stream, which has no cancellation penalty.

Those of us choosing a FIXED plan will get the security of a constant rate even if the energy market "wholesale price" fluctuates. However if "market prices" drop below those agreed fixed rates, we consumers are stuck… required to pay the guaranteed price as stipulated in our contracts. Other Retail Electric Providers offer a balanced or “levelized” payment model for their users who are not delinquent on their payments, which allows the customer to can pay a levelized amount calculated from their electricity usage for a certain period such as twelve months or more.

What is a Variable Electricity Plan?

The opposite of a fixed rate plan is a variable or "month-to-month" payment model, where the PA electric company will invoice the consumer based on the current conditions or pricing trends of the energy market. This is nice for those of us who want to enjoy the benefit of a price drop in the market. However, if the fluctuations in the prices result to higher rates, we’ll pay a higher price (or switch providers). This is one of the reasons I selected Stream.

How to Choose between Variable and Fixed Electricity Plan

The following may help guide your decision on the right electricity plan for your needs. Again- speak to people you know and trust, or read websites that review the companies and their reputation.

If you don’t want to worry about fluctuating energy prices, pick a fixed rate or select a provider that doesn’t require a long-term contract. Before the contract period expires, the PA electric retail provider should contact you as to whether to continue with the same plan for the next period.

If you plan on staying in your current home for a short period of time (or currently are under a short-term lease) you can be more confident picking a variable electricity plan. But the opposite isn’t necessarily true – just because you’re in a permanent home doesn’t mean you want a fixed plan.

If you don’t mind paying early termination fee (if one exists), you could opt to use a month-to-month plan. Good news: don’t worry if you may relocate. Regulations stipulate that people under a fixed-rate contract are not required to pay a pre-termination fee if the reason for your termination is to relocate to another city or state not covered by the provider.

Some providers offer special incentives or giveaways for consumers who pay regularly and are not delinquent on bill payments. These giveaways of incentives can vary -- from free movie tickets to paid trips to pre-determined destinations depending on what they offer.

Any other tips! Comment below.

PA Electricity: 14 Tips for Saving Money

Here are some free tips for making a selection on service provider for your electricity (now that you have a choice beyond PECO). Keep these in mind while making this important, and potentially money-saving choice:

1. PECO no longer has a monopoly. PECO customers cannot get special treatment when the power goes out. They're still responsible for billing and service even if you pick another company.
2. Switching is usually smart. PECO's rates will go up 5%, and you may want to switch often (unless you get a special discount for staying... or have a contract). 
3. Do your best to avoid anything you'll regret: especially a binding contract.
4. You can find better deals and save potentially hundreds of dollars annually making this one decision. Electricity is measured by kWh, or kilowatts per hour. If you pay 10 cents a kWh instead of 14 cents, your monthly electric bill could be $100 or more lower! 
5. It's not as hard to switch as you probably think. 
6. Check your next PECO bill and look for the kWh rate. That should be listed on your electric bill, and it may be higher than what’s available now. In Texas, where my provider (Stream) is based, it ranges from 8 cents to as high as 20 to even 25 cents. 
7. Call your provider and ask for the date when your contract expires (if you have one). Determine whether your rate is fixed or variable. Plan your switch a couple months before your contract expires.
8. Decide whether you want to gamble or "play it safe." Some providers offer a higher "fixed rate," and others offer a variable rate that fluctuates up or down. 
9. Conduct a thorough search. Go to this Web site: www.papowerswitch.com. Click on “Shop for Providers,”and then enter your zip code. Also, check your provider company’s own Web site. 
10. I prefer a fixed rate, but I don't like to be bound by contract and I wanted the least expensive option currently available. Stream met that criteria. 
11. Each service plan comes with links to “Terms of Service,” “Facts Label,” “Signup” and “Special Terms.” When you click on these, you learn the nitty-gritty details.
12. Check out other sources like this and other blogs. Be aware of hidden motives. For instance I'm not completely unbiased because I represent Stream as an Ignite representative. But I'm trying to keep this blog neutral, honest and objective. 
13. Ask your friends, and research the service reputation of companies. In general we don't have frequent communication with our electrical provider... so I value low price more than service (and remember that PECO is ultimately responsible for fixing power outages... so don't pay a premium for a service department that ultimately will defer to PECO.
14. Check out providers in the “Better Business Bureau.” You’ll be able to pull up the company’s report in the BBB region of its headquarters.

Fox Philly on PA Electricity Choice

Fox Philly reports on PA residents now being able to show for their electricity provider. Fox 29’s Chris O’Connell reports (video below)

• If you have PECO, your bill will be going up about 5%, on average, unless you act now. 
• 15 new suppliers are now servicing PECO’s 1.6 million customers (I picked Stream). 
• Some of the new companies are offering discounts or fixed pricing for service.
• If you want to make a switch, you should not notice many changes, meaning, you will still get a PECO bill. 
• You will still call PECO for repairs or power outages.

I think many will be timid to change because they fail to understand the last two points. PECO can't deny you a repair if you choose another provider.

Low Income Utility Assistance in PA

If you're low income and need financial assistance on your Pennsylvania electrical bill, check out the Utility Emergency Services Fund (UESF).  According to its website it provides:

• financial assistance so families and individuals can avoid utility termination or get utility service restored
• provision of technical assistance
• formation of partnerships
• advocacy activities
• and other energy related services.

So if you're having trouble with your PECO, check UESF. Enough acronyms?

I've learned about it through the news that Stream Energy is donating UESF $10,000 tomorrow (Friday, December 4, 2010). Per previous posts, I've picked Stream. Thanks, guys.

My Sources So Far

In my efforts to shine light on deregulation, I'm mostly sourcing PA Power Switch because it's by the Pennsylvania Public Utility Commission (PUC). I'm not PA Power Switch. Just a woman who isn't a big fan of monopolies, and would like to leave the planet better than she found it.

If you have other credible, objective sources... please comment. Again- I'm not without bias because I've picked Stream. But this isn't a covert Stream energy blog, and I don't plan to shill it here! Keep me honest. :)

Welcome to Penn Power Switch

Hello. This blog is for those of us learning about Pennsylvania energy deregulation, and want to understand our options. I will keep it as objective and informative as I can, but a disclaimer: I'm working part time with Ignite to introduce Stream Energy. I'm also a Stream customer.

We Pennsylvanians now have an option to pick our own electricity company. Just like we can choose our own cell provider, cable provider or Internet search engine. I like choices because it companies honest.

Fewer than 700,000 of us (as of this writing) have switched. That's because it's kinda freaky.

Our rates are going up (see details from state website), so that's kinda lit my bulb. Here are the details on who to choose and the questions you'll want to ask suppliers or providers. Because none of us wants to be freezing in the middle of the winter, or have to worry about getting "shocked" by rates. Do we!?