Electricity Deregulation Blog

PPL Electric Utilities will no longer be the sole supplier for electricity once rate caps come off Jan 1.

Electricity customers will then be able to select an alternative supplier for electricity.

PPL will still deliver electricity and do all the billing for power, but the power can come from another company.

Some people may not shop around and PPL Electric Utilities is compelled to provide power to them as default “provider of last resort.” The company already bought the power for those who will not shop around and has announced a price to compare: 10.68 cents.

That dime and a half represents the cost per kilowatt hour PPL will charge for generation (and some transmission) of power for customers who do not select an alternate supplier as of Jan. 1. That number – 10.68 cents – is the price people should compare when shopping for a better deal.

That number is the most current as of Tuesday but it has changed over the past week, and customers are asked to call PPL at 800-342-5775 for the latest price.

Here’s a look at state-approved competitive suppliers in the PPL service area and their recent offer:

- Dominion Energy offers 9.5 per kwh with no enrollment fee or contract term. For more information, call 888-216-3721 or visit www.dom.com/products.

- Direct Energy offers a contract. For the first three months, customers pay 8.99 cents per kwh and then 9.49 cents per kilowatt hour. There is a $100 early cancellation fee. For more information, call 888-734-0741 or visit www.directenergy.com.

- Liberty Power Corp. reviews power usage and will offer quotes to customers. For more information, call 866-769-3799 or visit www.libertypowercorp.com.

- Community Energy Inc. supplies renewable energy, such as wind and other green energy, at a premium to PPL’s rates, currently 2.5 cents on top of PPL’s price to compare. For more information, call 866-WIND-123 or visit www.communityenergyinc.com.

Offers may differ based upon each customer’s power use and other factors. Also, suppliers’ offers could change. Terms of the service, such as the length of the agreement, may differ as well.

Customers should get used to revisiting suppliers often, since electricity prices and competitive offers could change dramatically.

“Customers need to pay attention,” said Glenn Thomas, former state Public Utility commissioner and now a consultant with power producers. “This is not the old model where your rate is your rate and there is not much you can do about it. You’ve got to keep an eye on the price.”

For more information on shopping for electricity, visit www.oca.state.pa.us or www.puc.state.pa.us.

Low-Income Home Energy Assistance Program (LIHEAP) is the federal program that provides financial assistance to needy households for home energy bills. In Pennsylvania, the Department of Public Welfare (DPW) administers the LIHEAP program. The LIHEAP program provides both cash and crisis benefits to low-income households. Cash benefits help low-income customers pay for their home energy needs while crisis payments help meet emergency home energy situations. For more information on LIHEAP, visit the Department of Public Welfare’s website at http://www.dpw.state.pa.us/ServicesPrograms/LIHEAP/.

Meanwhile, the energy pool endorsed by the Schuylkill Chamber of Commerce is going well, Bob Carl Jr., chamber executive director, said Tuesday.

Since April, 240 of the chamber’s “more than 800″ members joined electricity energy pools run by OnDemand Energy Solutions, Allegheny County.

“And another 60 to 70 are still being processed, which we hope will be effective by February 1. It’s more than we expected,” Carl said.

Earlier this year, OnDemand opened a pool to chamber members who were PPL Electric Utilities customers hoping to avoid intense electricity rate hikes with the anticipated deregulation in Pennsylvania in 2010.

Chamber members interested are invited to learn more at seminars OnDemand representatives scheduled for 8 a.m., 11 a.m. and 2 p.m. Dec. 17 at the Schuylkill Chamber of Commerce Conference Center, 91 S. Progress Ave., Pottsville.

BY DAVID FALCHEK and Stephen J. Pytak (STAFF WRITERs dfalchek@timesshamrock.com spytak@republicanherald.com)