Yesterday, PPL completed it’s last auction to for power to serve customers after rate caps expire on January 1st 2010. PPL has been procuring power in phases since 2007 in order to mitigate against fluctuations in the price of electricity.
With rate caps ending electricity, like any commodity, will be traded in a marketplace where prices reflect supply and demand. While no one wants to pay the now official 29.7% increase, this is a good move for consumers in the long run. Right now only Dominion, a Richmond, Va. energy company, has announced plans to sell electricity to residents in PPL’s region. But they’re offering a 10% discount off of PPL’s rate of 9.948 cents per kilowatt hour to its first 5,000 new customers. Announcements like this will become more common as people learn to shop around for electricity providers. Businesses are already seeing the benefits with over 40 companies completing to provide power.
PPL itself is becoming more responsive to the demands of the consumer by offering more options for how consumers pay their bills. The PUC is currently reviewing a plan that would allow consumers to be charged different rates for peak (daytime) and off-peak (morning and evening) usage. By switching electricity intensive activities to the evenings- like running your dryer or dishwasher -consumers could see significant savings. In addition, the company expects to offer even more energy efficiency programs throughout the fall.
In the end, consumers will have more control over what they pay for electricity.
To learn more about shopping for electricity view the shopping guide from the Pennsylvania Office of Consumer Advocate.