Electric De-reg coming soon... don't wait!!!

[Dredly]

This is coming on January 1st... estimated increase will be 30% for all customers! This 30% increase is intentionally high as PPL does not want residential customers, they save money if they only have to be the supplier and let someone else deal with the customer... so they don't want you!

Start shopping now or you are going to regret it next year

http://www.poconorecord.com/apps/pbc...0334/-1/NEWS16

By David Pierce
Pocono Record Writer
December 06, 2009
PPL Electric Utilities customers can be sure of two things in January: Their electric bills will go up. Their bills will go up even more if they don't select a new electricity supplier.

It's part of the electric deregulation process implemented by the Pennsylvania Public Utility Commission. State-imposed price caps are coming off and other electric supply companies are freely competing for residential and commercial customers within the PPL service territory, which includes most of Monroe and Pike counties.

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PPL's energy-saving rebates are aimed at reducing consumption PPL Electric Utilities is getting out of the business of supplying electricity — sort of — but will still be the company that maintains utility lines and equipment and delivers that electricity to your home. PPL Electric will still be the company customers contact if there is a power outage.

And PPL will be the "default" supplier of electricity of last resort, if customers fail to shop for and select a new generation company. If they don't, the cost of electricity will rise by 30 percent next month. PPL signed wholesale generation contracts months ago locking in the price they will charge customers who don't choose a new supplier.

PPL Electric itself is indifferent to the prospect of losing electricity customers.

"It neither hurts nor helps PPL if consumers choose another supplier," says PPL Electric spokesman Ryan Hill. "We encourage all our customers to explore their options, look for the best deals possible."

Easier said than done, many customers say.

The Pennsylvania Public Utilities Commission, the Pennsylvania Office of Consumer Advocate and a coalition of electric generation companies called the Retail Energy Supply Association (RESA) all have posted electricity shopping tips on their Web sites. PPL Electric included a letter and brochure explaining the process with recent billings. Electric supply companies are contacting potential new customers.

"We've received hundreds of calls a day since suppliers started making offers to customers," Hill said. "We tell them the type of questions to ask, the steps to take."

Consumers should consult the "price to compare" as noted in a letter with the November billings. It is the 65 percent to 70 percent of the billing charge that is open to competition, covering generation and transmission of electricity. It is expressed in cents per kilowatt-hour (kWh) — the amount of electricity needed to keep 10 100-watt light bulbs burning for one hour. For more information on "price to compare" call PPL Electric Utilities at (888) 668-4775.

Consumers also should know their monthly usage level of electricity as noted on the first page of bills.

The current price to compare for a typical residential customer is 10.7 cents per kWh, says Hill, though that cost won't be finalized until later this month.

Customers are expected to call various suppliers and ask what they would charge for comparable electricity. Customers should ask if the price includes the cost of the electricity, the transmission cost of that energy which the companies will charge back to consumers after paying PPL to transmit it, and taxes.

Customers will be asked to sign on for a specific length of service. Some companies may lock in a higher fixed price, or offer customers a lower introductory price that could rise during the course of the contract. Consumers should ask what happens to the price of electricity once the contract expires, said Hill.

Sonny Popowsky of the Pennsylvania Office of Consumer Advocate says consumers also should inquire about possible penalties if they cancel before the contract term ends.

"People should look at the contracts they're signing," said Popowsky. "Some are for one year. Some are for three years. Some may charge you a cancellation fee if you leave early."

Once customers agree on a contract and receive a copy in the mail, they have three days to cancel it without penalty under state law.

Though consumers will pay more in January than they do now, residential users will save 10 percent to 20 percent compared with the future PPL price if they select a new provider. Yet most customers won't do anything, meaning they'll continue buying power from PPL.

"Most customers will not switch — that's been the experience across the country thus far," Popowsky said.

Consumers shouldn't be intimidated by the process, says Rick Kelly of RESA, the coalition of competing electric companies.

"It's not as complicated as it might seem when you first hear about this," Kelly said. "There are several places where customers can start that (shopping) process."

Online fact sheets are available at RESA's Web site — www.resausa.org — by clicking on "Pennsylvania key issues," he said.

He also pointed to Web sites operated by the PUC and Office of Consumer Advocate.

The PUC's site includes lists-of residential and commercial electric generation suppliers and price shopping tips. Go to www.puc.state.pa.us and click on "Electric Choice."

Go to the Consumer Advocate's Web site — www.oca.state.pa.us — and click on "Electric Shopping Guide." The guide is available via the postal service by calling OCA at (800) 684-6560.

Among residential suppliers competing in the PPL service territory are Dominion Energy Solutions, Liberty Power Corp., and Direct Energy. Additional companies are continuing to enter the market.

Other companies — including Community Energy Inc. and PPL EnergyPlus — offer consumers the option of "adding on" their alternative energy supplies to those of a primary supply company, for an additional charge.

The idea is to encourage use of wind and other renewable energy sources.

PPL Electric Utilities offers an online "Electric Choice Handbook." Go to www.pplelectric.com. Go to "Electric Choice" and click on "Literature and Information."

No matter what company you select to provide electricity, PPL will handle the charges in a combined bill that includes PPL costs for maintaining the infrastructure.

A little more than a year from now — January 2011 — MetEd customers will go through the same deregulation process faced now by PPL Electric consumers.

[crazyyankee]

Also If I remember correctly, starting in 2011 Met Ed rates are going up about 55%..

I do have words for both PP&L and Met Ed, but they would not be allowed here. I also have words for the elected idiots that put us in this spot in the first place..

Being a career politician should be a crime, punishable by death...

[Dredly]

Also If I remember correctly, starting in 2011 Met Ed rates are going up about 55%..

I do have words for both PP&L and Met Ed, but they would not be allowed here. I also have words for the elected idiots that put us in this spot in the first place..

Being a career politician should be a crime, punishable by death...

actually thanks for mentioning the Met ED change...


I currently use MetEd, does anyone know if they are jacking their rates up on 1/1/10 as well?

[dc dalton]

Just found out about this yesterday but thanks for the reminder .... now I know why all this stuff has been showing up in the mail about electric companies.

[stephpd]

We experienced deregulation in DE a couple years ago. Only problem is that it's such a small population that NONE of the other suppliers wanted to cover the area. That left just the same supplier as before but with significant rate increases every year for the last two years.

Good luck for all of you in less densely populated areas.

[ehidle]

I forget how much PECO said they were going up, but I am sure that whatever PPL ends up at, it'll still cost half as much as PECO...

Right now I pay about $0.16/kWH rolled up... anybody else would be a vacation compared to that...

[andrewjs18]

ahhhh...free electric at the new apartment come 12/31/09. =)

[tlgpa]

Thanks for posting this. I got the notice in the mail not that long ago and didn't pay much attention to it... and probably threw it out.

I just got done switching my supplier. And after realizing the huge increase, I'm going to go home and remove every lightbulb we own!

Some helpful info for PPL customers.
http://www.oca.state.pa.us/Industry/...lecomp/PPl.htm

PPL is currently at ~$5.50/kWh. Jumping to $10.55/kWh in January.
I switched to Direct Energy.

[Dredly]

My current "price to compare" is 7.49 / kWh with MetEd

but I have no idea what it is estimated to go up to after 1/1... looks like about a 21% increase...

Met-Ed also is requesting automatic rate adjustment rates to recover transmission costs, storm damage expenses, the cost of providing low-income programs and government mandates. In addition, the company is proposing changes in its generation rates for 2008, 2009 and 2010 which could increase rates by up to $165 million each year.

Under the preferred approach, the proposal increases the yearly bill for an average Met-Ed customer using 6,000 kwh per year to about $707 a year from about $601 (18 percent). Under the alternative proposal, the average Met-Ed customer’s yearly bill would increase to about $726 a year (21 percent). Met-Ed serves about 534,966 customers in eastern and southeastern Pennsylvania.

and based on the websites... the ONLY approve alternate is a wind power (more expensive)..

so much for "choice"

[Dredly]

I just spoke with MetEd and apparently their price regulation doesn't fall off until 12/31/2010 so I have another year before I have to be worried... hopefully I'll have more options by then