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Deregulation Q&A for PECO Customers

With the expiration on Jan. 1 of the last remaining electricity generation rate caps in Pennsylvania, full electricity deregulation has finally made its way to customers of PECO Energy Co., the state’s largest utility.

As the result of deregulation and the expiration of the rate caps, some 1.6 million PECO customers in Southeastern Pennsylvania now have the power to choose which electric provider they buy electricity from.

Although deregulation is actually pretty simple, the subject can be a little confusing for customers that come from a regulated or partially-deregulated energy market, so here are a few answers to some of the most common questions about the new deregulation affecting PECO customers.

Do I have to find a new electric provider?

No. You can remain a PECO customer if you wish, and you don’t have to “switch” to a competing electric provider.

What happens if I stay with PECO?

If you remain a PECO customer, you will get PECO’s “default service” and pay its “price to compare” for your electricity, which is currently set at 9.92 cents per kilowatt-hour through March 31 and is scheduled to be adjusted quarterly, once every January, April, July, and October.

Why should I “switch” to a competing electric provider?

Switching to a competing electric provider, like Spark Energy, could reduce utility costs. If you stay with PECO, your monthly electric bill will increase about 5 percent due to rising electricity delivery costs, and PECO has the option of raising rates three times again this year, once in April, July, and October.

How much money can I save by switching?

For each one-cent decrease in your electric rate, you stand to save about $1 dollar a year for every 100 kilowatt-hours of electricity you use. Therefore, since the average PECO customer uses about 9,000 kilowatt-hours of electricity each year, every penny saved on your electric rate will translate into about $90 a year in savings.


Questions and Answers on Electricity Rate-Cap End, The Philadelphia Inquirer, Jan. 3, 2011.

The Pennsylvania Public Utility Commission, PA Power Switch brochure.

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*Certain Terms and Conditions apply. This offer is available to first-time customers only. Customers must sign up for a fixed-rate energy plan. The plan may include a monthly service fee depending on the product. Use promo code which is showing above to qualify. Rate expires at the end of the term. Canceling or changing supply service prior to the end of the fixed-rate term may subject the customer to an early termination fee based on the product details. To be eligible to receive Spark Energy rewards, customers must enroll in a fixed term plan and maintain an active Spark Energy account in good standing (no past-due balance owed) for 45 days after the beginning of service. May not be redeemed for cash. This offer is subject to change or cancellation without notice prior to customer acceptance. This offer is nontransferable and cannot be combined with any other offers. This offer applies to services areas where Spark Energy LLC is active. The offer expires on 12/31/2021. See the Terms of Service and Electricity Facts Label (applicable only for TX) at www. SparkEnergy.com for more details.
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