Electric Choice Trumps a Rate Cap Phase-in
The York Dispatch reports West Manchester Township is entering into a consortium to hedge against future electricity rate increases as rate caps are set to end for the area in 2011. State Rep. Seth Grove highlighted this story to show the need for intervention in the deregulation process, but it’s actually proof that the market is working.
Benchmark Energy Solutions is just one of the many alternatives out there for residents, municipalities, and businesses to consider. Our business guide goes into more detail on the choices that were unavailable under rate caps.
In PPL territory some suppliers have slightly decreased since rate caps expired in January 2010. ConEdison dropped from 9.95 cents per kwh in January to 9.39 cents in February. Dominion Energy planned to raise rates and then decided against it.
Competition is delivering electricity at a cheaper rate than the old public utilities are able to provide.
According to the PA Consumer Advocate, 332,000 consumers have already switched, 276,000 are residential customers. It’s still early, but the wide array of alternative suppliers are delivering some level of relief without government intervention.