Pennsylvania customers are beginning to see some substantial benefits from electricity deregulation, with fierce competition between electricity providers leading to dramatically lower electricity rates, according to The Philadelphia Inquirer.
Pennsylvania finally ended the last of its rate caps last year, leading to a spike in electricity rates as the price came in line with the market. This led many to question the benefits of the policy, worried that the high electricity prices would last.
But now residents are seeing alternative electricity providers offering electricity rates as much as 20 percent below the prices offered by regional utility company Peco Energy Co.
"It's all that good shale gas you guys are sending us from Pennsylvania," Mike Perna, vice president of marketing and business at electricity provider ConEdison Solutions, explained to the Inquirer.
States like Pennsylvania, Ohio and Texas have seen an explosion of natural gas production as technology allows them to access deposits trapped in shale rock formations. That production has pushed down prices, leading to much lower electricity prices.
As of February 22, Peco was one of the utility companies with the most customers switching electricity providers at 26 percent of all customers and 24 percent of all residential customers, according to PAPowerSwitch.com.