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!

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:

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.