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.