The electric rate for customers buying their power supply from PPL Electric Utilities in Pennsylvania increased for small and mid-sized business customers on March 1. Business customers can save 35-40% on their electric rate by shopping.
PPL serves 1.4 million customers in Harrisburg, Allentown, Scranton, Wilkes-Barre, Lancaster, and surrounding areas.
Under the competition that has been introduced into Pennsylvania's electric market, customers no longer have to buy their electricity supply from PPL. Customers can choose from dozens of competing electric suppliers offering a lower rate.
If customers don't shop for a lower electric rate, however, they receive power supply from PPL on a mechanism known as "default service." PPL buys power supplies for default service in the wholesale market, and charges non-shopping customers a Price to Compare for their generation supply. The Price to Compare changes every quarter.
On March 1, the PPL Price to Compare for small and medium business customers (General Service Rate Classes GS1 and GS3) increased 6%, to 10.814¢ per kilowatt-hour.
Although the increase was only 6%, PPL's existing Price to Compare was already high, and the new rate is likewise significantly higher than electric rates from competing energy suppliers.
Small businesses at PPL can save 35-40% by shopping for a lower electric rate. Although specific rates will vary with each individual business's usage and load shape, competing electric suppliers are offering small businesses at PPL electric rates as low as 7¢ or even 6¢ per kilowatt-hour. To find the lowest electric rates in the market for business, customers must force electric suppliers to directly compete against each other, head-to-head.
For even the smallest businesses at PPL, shopping for a low electric rate can save over a thousand dollars annually, and for businesses with higher electric usage, the savings can equal tens of thousands of dollars.