Pennsylvania surpassed a significant milestone last month with over one million Pennsylvanians shopping for electricity. Of the 1,013,431 consumers exercising choice, 817,780 are residential customers and 185,315 are business and commercial consumers. One million shoppers is impressive, but even more impressive is how quickly Pennsylvania?s market reached this landmark.
This is the first year for state-wide competition with rate caps expiring in the eastern portion of the commonwealth at the end of 2010. The growth in eastern Pennsylvania and the greater Philadelphia area is especially noteworthy. About 16 percent of Peco’s 1.6 million customers, including most of its large industrial customers, have already switched to alternative suppliers. This is a phenomenal shopping rate for one quarter of customer choice.
Government statistics show the number of consumers shopping between 2009 and 2010 more than doubled. With only three full months of competition in 2011, shopping rates have almost doubled again.
Nearly half the power distributed through Peco’s system is now provided by alternative suppliers and the vast majority of their industrial customer load is being met by a competing energy providers. In the commercial sector, just over half of the electricity load is served by alternative suppliers. With discounts of up to 10 percent or more, it?s no wonder Peco customers aren?t hesitating to shop.
The surge in electricity shopping may have something to do with the extremely competitive environment. Nearly 50 suppliers are vying to serve Peco customers, 36 of those companies are active in the residential market.
While Philly may be the most impressive region in terms of how quickly consumers are exercising choice, shopping is strong across the entire state. So far, 300,000 new accounts have been established this year, a clear indication that Pennsylvania customers are embracing competition through PA electric choice programs.
The central Pennsylvania PPL service area is seeing nearly 530,000 customers choose a lower cost energy supplier. That number includes a third of residential customers and the vast majority of the commercial and industrial load.
While extensive education campaigns throughout the transition from monopoly control to electric choice have played a significant role in sparking consumer interest, falling electricity rates are the real impetus behind the continued growth of the state?s competitive market. In 1996, Pennsylvania?s electric rates were 15 percent higher than the national average. By 2010, electricity rates were 5 percent lower than the national average, according to a recent study by PennFuture.
The 80 percent of customers who haven?t yet switched energy suppliers inPennsylvania are wasting their money. Shopping for electricity doesn?t have to be confusing or time consuming. You can easily compare rates and contact an energy consultant at Electric Choice.