Electricity providers offering better prices than purchasing pools

Many cities are beginning to see more and more benefits from electricity deregulation, simply going directly to retail electricity providers.

Particularly in Illinois, where electricity deregulation has just begun to really take hold, many smaller towns are looking to lower electricity rates by setting up electricity aggregation pools.

But, while these systems can often provide lower electricity prices than many utility companies, they are much less reactive to lower energy costs.

But Mayfield, Pennsylvania, north of Scranton, recently found that it could actually save money by backing out of its purchasing pool with nearby communities, according to The Times-Tribune. When energy prices are low, as with natural gas prices right now, retail electricity providers tend to offer lower prices.

“The price changes daily,” he said, adding that the contract price will be less than the borough currently pays. “Right now it’s just over eight cents per [kilowatt-hour]. It should be a savings, but I don’t know what it will be yet.”

At present, nearly 1.6 million Pennsylvania customers have turned to alternative electricity providers, including more than 1.3 million residents, according to PAPowerSwitch.com.