Philadelphia residents pay some of the highest electric rates in all of Pennsylvania. And with more rate hikes on the horizon, most are eager to reduce their electricity costs.
The good news is that Pennsylvania’s deregulated energy market lets you shop for competitive electric rates and choose alternate suppliers. Using tools like ElectricityRates.com, Philly residents can easily compare electric rates in Philadelphia.
This guide helps you understand what affects electric rates in Philadelphia and gives tips for finding the best supplier. We’ll explain PECO’s price to compare and help you lower your monthly electric bill and keep more money in your pocket.
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Philadelphia Energy Rates
Philadelphia residents have the Power to Choose their electricity supplier, also known as Energy Choice. Despite this, Philly citizens have long endured some of the highest electricity rates in Pennsylvania.
Residential electric rates have been consistently higher in Philadelphia than the state and national averages for the past 20 years. In early 2023, the average Philly homeowner paid over 19.7 cents per kWh for electricity. That’s 17% higher than the national median of 16.8 cents/kWh.
Several factors contribute to Philadelphia’s comparatively high electric prices:
- Legacy utility infrastructure – As an older city, Philadelphia requires significant investment to maintain and upgrade aging grid components like power lines and substations. Ratepayers pick up the bill for these costs.
- Supply/demand imbalance – Philly’s dense population drives high energy demand. But there are limited options for electricity generation within the city. To solve this, power is delivered from outside the city. This strains transmission lines and leads to congestion charges, especially during the winter and summer.
- Compliance costs – Philadelphia’s emissions reduction goals require utilities to invest in renewable generation and energy efficiency incentives. The expenses are added into electricity rates.
- Delivery charges – Even when shopping for alternate suppliers, PECO delivery charges remain on Philly bills. These regulated distribution costs make up 30-40% of an average electric bill in Philadelphia.
Understanding electricity rate costs empowers residents to make better choices to reduce living costs in Philadelphia, Pennsylvania. While rates are still higher than average, shopping for competitive supplier plans can cut your electric bill.
Philadelphia Electricity Providers
The Pennsylvania Public Utility Commission (PUC) regulates the state’s electric, natural gas, telephone, water, and transportation companies. The PUC oversees utility rates and service quality, provides consumer protections, and ensures compliance with state and federal regulations.
PECO is the predominant utility company delivering electricity in PA. They will come up when searching for “electric suppliers near me.” Owned by Exelon, this energy supplier distributes electricity throughout southeastern Pennsylvania, including Philly.
However, Pennsylvania’s deregulated market allows consumers to shop for competitive supplier plans. These alternative retail electric providers buy power wholesale and set their own electric rates.
Major third-party power suppliers in Philadelphia include:
- Direct Energy
- Tomorrow Energy
- Energy Harbor
- Green Mountain Energy
- Inspire Clean Energy
- Frontier Utilities
- Spark Energy
- Public Power
- Major Energy
Comparing rates and offers from these and other suppliers allows Philly residents to find potential savings. Freeing you from sticking with default PECO generation rates.
What To Look For When Comparing Electricity Providers In Philadelphia
When looking for the best value, residents should compare electric rates in Philadelphia based on several key factors.
- Plan Types and Rates – Review current rates and historical rate averages between providers. Know the policies on rate variability – some change month-to-month while others offer fixed rates. Compare fixed rate, variable rate, introductory rate, and other plan structures that impact pricing.
- Contract Terms – Understand the length of contract commitments and policies on renewal, cancellation, and early termination fees. Shorter contracts allow more flexibility.
- Fees – Look for hidden fees on top of electric supply rates, like signup, late payment, and disconnection fees. Fewer fees mean lower bills.
- Customer Service – Check provider reviews and ratings for helpfulness and reliability of customer support. Local call centers are preferable.
- Renewable Options – Determine available plans and costs for powering your home with 100% renewable energy like wind and solar. Going green can cost more in the short term but supports sustainability and is often cheaper in the long term.
- Assistance Programs – Ask whether discounted rates or bill credits are offered for low-income residents or payment-troubled customers.
Reviewing suppliers on these factors will aid in picking the best electricity provider for your home and usage needs. Be an informed consumer when comparing your residential electric options in Philadelphia.
Types of Electricity Plans in Philadelphia
Philadelphia residents can choose from various electric plan structures and options when picking a supplier. Understanding the pros and cons of different plan types helps you find the best fit for your needs.
- Fixed Rate Plans – These plans lock in a set rate per kWh for the duration of your contract term, usually 6-36 months. The rate provides certainty against variable rate spikes.
- Variable Rate Plans – Rates fluctuate month-to-month based on market conditions. Volatile but can be low during periods of cheap electricity.
- Introductory Rate Plans – Feature a discounted teaser rate for the first 3-6 months to attract new customers. Rates then convert to a higher variable rate.
- Green Energy Plans – Enable choosing renewable energy sources like wind, solar, or hydro. Rates are slightly higher but support sustainability.
- Prepaid Electricity Plans – Allow prepaying for electricity ahead of use instead of monthly bills. It can be easier to budget but have higher rates.
- Peak-Time Rebates – Get bill credits for shifting high-energy appliance use to off-peak hours to reduce grid strain. Requires smart meter.
- Free Nights & Weekends Plans – Don’t pay for electricity during lower-demand evening and weekend hours. Useful if shifting usage.
Understanding these options will aid in picking the best plan structure for your budget and needs. Be sure to read all contract details closely and consider consulting with our advisors.
Compare Philadelphia Electricity Rates Conclusion
The bottom line? Shopping for a new electric provider is one of the best ways Philly homeowners can save each month.
Comparing your options isn’t hard. Just enter your ZIP Code to compare electric rates in Philadelphia from competitive suppliers versus PECO’s price. Evaluate plans based on price, contract length, fees, and other factors. Chances are you’ll find cheaper rates that reduce your electric bill.
And unlike other sites like PA Power Switch, we rigorously review and verify all power providers in our marketplace. Switching suppliers is a smart move since Philadelphia’s energy costs are high and rising. Take control of your electricity expenses and keep more money in your pocket.
We make the process easy and educational. Give us a try, and start saving on your home’s electric bills today!