Pennsylvania

Electricity Rates in the state of Pennsylvania

Although the legislation to deregulate electricity was signed by the state of Pennsylvania in 1996, it wasn’t until early 2011 that the entire state was able to choose a cheap electricity provider for their electricity needs. Currently, over one million Pennsylvanians have already compared electricity rates and have changed to a new electricity provider.

Pennsylvania is investing in five projects in five counties for the purchase and installation of alternative energy solutions that will reduce costs, recycle waste, and help Pennsylvania meet the Chesapeake Bay nutrient requirements. These projects, alongside green electricity providers in the state of Pennsylvania, will truly help the environmental concerns in the area.

The productivity of the multiple nuclear plants in the state has increased dramatically since the introduction and implementation of deregulation. In fact, a 2007 report by the Electric Power Supply Association credits competition-driven efficiencies at nuclear plants with providing $450 million in benefits annually to the mid-Atlantic region. Greater efficiencies at coal plants have reduced coal consumption by more than 12 million tons a year, according to the association.

How To Switch

It’s not complicated to change your electricity provider. Once you’ve decided on the contract that’s right for you, you fill out a form online or make a phone call. Nothing needs to be installed, and you’ll immediately start seeing savings on your monthly bill.

But how do you decide which contract is the best? It’s not just by finding the lowest advertised rate. Rates are important, but can be deceptive. It’s important to also think about the following:

• Monthly changes in the pricing scheme. With some contracts, the initial rate is actually the rate you’ll be paying. More commonly, you’ll pay a rate that varies from month to month. With a plan like this, you’re almost guaranteed to pay less money than you do to the utility company.
• Length of Contract. Electricity contracts can last for six, twelve, or twenty four months—and for other lengths too. This might be the most important feature of the contract to notice, since it determines how long you’re stuck with all the others! Note that some companies don’t require an extended contract at all; you pay from month to month and can leave without a termination fee.
• Signup Bonuses. Plenty of companies offer incentives to attract the business of new customers. These might come in the form of discounts on the electricity, or as more exotic items like airfare or hotel tickets. These are exciting, but don’t forget that they only come around once.
• Electricity Source. Maybe you’re not happy with power from burnt coal or nuclear plants. With deregulation, you now get some control over where your electricity comes from. You can sign up to receive your electricity from all renewable sources. Sometimes you can be even more specific and hook up with the solar plant or wind farm of your choice.