New, higher electric rates are set to go into effect for customers buying their power supply from PECO in the Philadelphia area on October 1, unless customers shop for an alternative electric supplier.

As first alerted customers over a month ago, electric rates at PECO for small businesses and residential customers will rise as PECO rebalances its power supply portfolio, and passes onto customers new costs of buying power.

These higher electric rates, reflected in the "Price to Compare," only apply if you buy your electricity supply from PECO, and not one of the dozens of competing energy suppliers now offering you a lower rate.  With the competition introduced in Pennsylvania's electric industry, customers can choose among competing electric suppliers offering lower electric rates for their power supply, which will still be delivered over PECO's wires under service regulated by Public Utility Commission.

Currently, over 40% of PECO commercial customers and 20% of PECO residential customers, totaling more than 360,000 customers, have switched to an alternative electric supplier for a lower rate.

Starting October 1, for PECO Rate Class GS (General Service) customers with demands under 100 kW (small businesses), the electric Price to Compare will increase to 10.87 cents per kilowatt-hour (kWh), from the current rate of 10.32 cents.

Additionally, PECO customers with demands under 100 kW in the Primary – Distribution Power (PD) rate class will see their Price to Compare increase to 10.51 cents per kWh, from 9.97 cents.

PECO customers under 100 kW in the High – Tension Power (HT) rate class will see their Price to Compare increase to 10.11 cents per kWh, from 9.59 cents.

Competing electric suppliers can undercut these rates by 20-30%, depending on the customer's specific usage and load profile, which can translate into big savings on customers' monthly bills.

For PECO residential customers, the Price to Compare will rise to 11.14 cents per kWh, from the current 10.42 cents (for usage under 500 kWh).

Residential customers can find savings of 15-20% off of PECO's new Price to Compare just by comparing the lowest rates in the Philadelphia market for residential electricity.