General Information on Philadelphia Electricity Rates
Pennsylvania is the second-largest producer of electricity through nuclear power in the United States; it’s closely followed by natural gas, coal, and oil. Some electricity suppliers also offer renewable energy but at a higher per kilowatt-hour (kWh) rate.
For all Philadelphia residents, your electricity bill is divided into two categories – supply and delivery services.
The supplier services include electric generation services from energy suppliers. Their electric rates depend on the cost of producing electricity, and that depends on the method of generating electricity. Some common electric suppliers in Philadelphia include Direct Energy, Tomorrow Energy, Constellation, Frontier Utilities, and Xoom Energy, among others.
Each energy provider offers different energy rates and plans; the supply charges in your electric bill usually includes the cost of generating electricity, cancellation fees, and early termination fees, among other things.
Your local utility company provides electricity delivery services. The utility company delivers your electricity, maintains power lines, and handles power outages.
Your delivery charges include the General Service, Residential Service, Distribution Power, Transmission Charges, and any tax-related charges. In Philadelphia, your local utility company is PECO Energy, and all their delivery rates are regulated and approved by the Pennsylvania Public Utility Commission.
Energy Deregulation and How It Affects Philadelphia Electricity Rates
After 1997, every homeowner in Philadelphia got an option to opt for ‘Energy Choice.’ Energy deregulation allowed all Philadelphia residents to choose from different electricity companies and get the one offering the best rate.
A competitive energy market has helped make electricity prices go below the national average. Residents can also opt for green energy plans that provide electricity generated through renewable means.
If you don’t opt for an energy company, you will get the default plan from the default service provider (PECO). The default rate is not an average rate and is much higher than the rate you will get from other suppliers. The default rate is also your Price to Compare, and you can use it to compare the rates and plans offered by other energy companies.
Finding the Best Philadelphia Electricity Rates
All Philadelphia residents can choose from several electric suppliers and opt for the best plan available. Some companies offer low rates, while others offer various benefits at average rates.
You can compare each energy company’s plans and rates and make your decision. You can search and try to shop for rates yourself, but watch out for the fine print, hidden fees, and escalating rates once your term ends.
Alternatively, you can use Arbor’s free TrueRate Protection service to automatically find and switch to the best Philadelphia electricity rates in your area.
Arbor scans the market and gives you the best rates you can get in your service area. When your contract term is expiring, Arbor finds the best rate and switches you again. You always pay the best rate and never have to worry about overpaying for electricity ever again.
You can also use the free savings calculator to find out how much you could save in each case.
Understanding Philadelphia Electricity Rates and Plans
Every energy company offers different energy plans with varying rates and term lengths. Some companies may offer additional benefits depending on the type of plan you choose.
Changing your supplier is an easy task – you can find out who your current supplier is and what rate you’re getting using your energy bill. You can use Arbor to find the best rate in your area and switch to the lowest cost supplier quickly to save time.
You can use Arbor to find the best rate in your area by using our free savings calculator.
Furthermore, you will find different types of plans depending on the companies. These are the three plan options you’ll find in Philadelphia.
- Fixed-Rate Plans: Such plans are safe from any form of rate change due to the energy market; you will have to pay the same rate throughout your contract. We recommend fixed-rate plans because they provide price certainty and minimize risk. But be careful: when your term expires, your rate becomes variable and can go up without notice. Arbor automatically keeps you on the best fixed-rate plan, so you don’t have to worry about rate hikes at the end of your term.
- Variable-Rate Plans: If you opt for variable rates, your monthly rate will depend on the prices of wholesale electricity and overall electricity demand. As a result, when demand is low, you’ll be paying low rates, but when demand is high, you’ll be overpaying for electricity.
- Green Energy Plans: Some companies in Philadelphia offer green energy or clean energy plans to reduce your carbon footprint.
Some plans may ask you for a deposit. However, plans available through Arbor never require a deposit.
How to Choose the Right Energy Supplier
All Philadelphia residents get electric delivery services from PECO Energy; however, they can choose from several electric suppliers. You can use the Price to Compare or your current rate to check what company is offering the best electricity prices.
You should also check what energy plan offers the best savings and benefits.
You can also check out how you can save on your energy bill with PECO Energy. But electricity is complicated, which is why people trust Arbor to manage their electricity service for them, so they always pay the best electricity rate available in Philadelphia