Residents Turn Out in Droves to PA Rep. Matt Bradford's Electricity Deregulation Seminar

Electricity deregulation in Pennsylvania has brought consumers more choices, and even more questions.

After fielding numerous inquiries from his constituents throughout the months, state Rep. Matt Bradford (D) organized two seminars in which representatives from the Pennsylvania Public Utility Commission (PUC) and PECO explained what deregulation means for area residents.

The seminars took place Thursday at 3 p.m. at Encore Experiences in Harleysville and at 7:30 p.m. at the East Norriton Township Building. The Harleysville seminar had so many attendees that some had to look for parking spots outside of the full Encore Experiences lot, and Bradford’s staff scurried to bring extra chairs to accommodate the standing-room-only crowd.

The following is some of the information that came out of the meeting:

The Basics

PUC Senior Communications Specialist Shari Williams and PECO Energy Educator Ray Moffo spoke to the crowd about deregulation and fielded questions.

 • Deregulation has brought other companies to our region; however, PECO is not in competition with any of them, Moffo said.

• “We have three parts of our electricity: generation, transmission and distribution,” said Williams. “That is what PECO provides to you as of now. You’re just shopping for the generation portion.” Consumers will receive only one bill, and it will contain itemized information—“what you pay for generation, what you pay for transmission, what you pay for distribution.”

• PECO is the only utility, but the other companies on the market now could be generators or brokers, Moffo said. Ten years ago, deregulation forced PECO to change to an energy distributor rather than generator. PECO just delivers the energy, buying it from another generator.

Moffo compared switching companies to a corner-store owner switching the soda brand he carries. “I’m your soda delivery guy, and for the past four years, you’ve been placing your orders with me. I’ve been driving my truck to your store every day and bringing cases of Coke. Now you have the option to say, ‘I don’t want Coke anymore; I want Pepsi.’ But it’s still going to be me driving the same truck. I’m just going to bring you Pepsi instead of Coke.”

• PECO is “the default provider,” Moffo said. If a company serving the area’s customers goes out of business, “we (PECO) have to be able to safely and reliably supply the customers with energy instantaneously” so no one’s service is interrupted.

• PECO’s current, average rate is 9.92 cents per kWh (kilowatt hour); in the second quarter of the year, starting in April, it will be 9.99 cents per kWh, Moffo said. “The rates are dependent on the market,” he said.

In contrast, some new providers are offering a fixed rate for a period of one or two years, Bradford said.

• PECO’s residential heating (RH) and off-peak metering programs will be phased out in the next two years, according to Moffo. A customer with one of the two programs “will have a separate individual rate to compare,” Moffo said.

“On each bill in the messaging area, it will list what your rate to compare is.”

• With the expiration of the rate caps, PECO bills have increased about 5 percent, according to Moffo. “We’re in a new era with no caps.”

“During (the 10-year capped period), the costs to operate our system were also increasing, which is why we asked permission from the Public Utility Commission for our first delivery rate increase in almost 20 years,” according to Moffo.
PECO cannot changes rates without the PUC’s permission, Moffo said.

• To start shopping for different companies, Williams told attendees to start at the PUC site www.papowerswitch.com, which has a list of licensed companies and PECO’s price to compare. Consumers plug in their personal usage amounts and zip code, and the site will generate an estimated amount of how much a person will save on a bill with a particular company. Residents can see the companies’ web addresses, whether there are cancellation fees, or if the rates are fixed or variable. It will also state if the company offers renewable energy sources; it will also have rates for RH versus RS.

Questions 

Williams posed and answered these frequently asked questions

• Can I save money by choosing a competitive electric supplier?

Yes, but it depends on your usage. If the switch will be beneficial to you, it will create savings for you. (It also depends on) how many companies are in a particular area, what they’re offering and what their price to compare is.

• Why should I shop?

Just like you shop for any other household item—credit cards, cell phone—you want the best service and the best deal in town.

• If I choose a new electric generation supplier, what part of my service will change?

The only part that will change is the generation; that’s what you bought from another source. Some companies are offering generation and transmission, and when you’re doing research and calling companies, that is something you need to ask.

• Can everyone shop for a supplier? Is there a deadline for shopping?

Yes. No.

• How do I know if the supplier will provide reliable service?

If you choose a new supplier, the quality, reliability and maintenance of your electric service will not change. PECO will still provide those services to consumers.

• How long will the switch take?

If a customer does it online, it is instantaneous. If a customer makes the switch over the phone, forms will be sent to that person’s home.

• If I choose a new supplier, can I still use LIHEAP (Low-Income Home Energy Assistance Program)?

Yes. There are different rules and regulations, but you can still use the grant.

• Are there any penalties for switching?

If you signed a contract, there may be a cancellation fee. PECO does not have a cancellation fee. The “going amount” is $100.

• Will I need a new meter if I go with a new supplier?

No.

Resources

For more information on deregulation and/or making the switch, customers can contact or visit the following:

• PUC: www.papowerswitch.com; 800-692-7380

• Office of the Consumer Advocate: www.oca.state.pa.us; 800-684-6560

• State Rep. Matt Bradford’s Worcester office: 610-222-3490

• PECO: www.pecoanswers.com

• PECO Smart Ideas program: Jane Young described programs put in place “to offset the 5 percent increase.”

Features include rebates for purchasing certain ENERGY STAR appliances, and PECO has reduced the price of compact fluorescent lamp (CFL) bulbs in area stores to encourage consumers to make the switch.

These programs are still available to customers who receive electricity from another supplier, Young said.

After the Harleysville event wrapped up, Bradford noted the interest exceeded his expectations, and he was looking forward to reaching more constituents at the East Norriton event.

“It’s such a complex issue … people need to get educated about the entire process,” Bradford said. “It’s really a whole new day with electric choice. It has pros and cons, but I think the more (that) people are informed, the better they will be to take advantage of it.”