Even though electric rate caps are expiring for Pennsylvania customers at PECO, Met-Ed, Penelec, and West Penn Power (Allegheny) on December 31, 2010, those aren't the only Pennsylvania customers that need to be in the market for a lower electric rate before the end of the year.
Many customers at PPL Electric, whose rates expired December 31, 2009, are facing a similar deadline at the end of the year. Namely, many customers at PPL shopped for a lower electric rate last year and signed 12-month contracts, which are going to expire in just under four months.
Currently, 40% of commercial customers and 80% of industrial customers at PPL have shopped for electricity supply, and are buying their power from an alternative electric generation supplier. Customers have shopped for a new energy supplier to avoid the 30% rate hikes that PPL experienced starting in January 2010, and have saved thousands if not millions of dollars on their electric bills this year.
Most customers who have shopped at PPL signed a 12-month contract starting in January 2010, primarily because the PPL "default" rate, or price to compare, was going to reset in 12 months time. That made it a smart decision to lock in savings with a competing energy supplier for 12 months, and then test the waters again when the contract expired.
That time is now, and customers can find the lowest electric rates in Pennsylvania using SaveOnEnergy.com to get energy suppliers to compete for their business. Only SaveOnEnergy.com puts the power of competition in customers' hands with just a few clicks of a mouse, through its exclusive retail exchange portal where up to eight energy suppliers compete head-to-head to win the customer's business.
PPL customers facing an impending electric contract expiration cannot wait before finding a new deal. As the Pennsylvania Public Utility Commission (PUC) recently noted, the market rules governing contract expirations and renewals are poorly defined.
Currently, the PUC rules do not address what happens when a customer's contract expires, and the customer has not responded to a renewal or expiration notice from their energy supplier. That means some energy providers could interpret the lack of any regulation as allowing them to keep the customer beyond the term of the contract, at a rate determined at the supplier's discretion, which could be significantly higher than current market prices.
Even worse, a supplier could renew a customer for a fixed period of time, say another 12 months, and impose a termination fee if the customer then decides to leave for a lower cost supplier.
Customers must avoid having their contract automatically renewed without shopping for a lower energy rate first and making an affirmative choice on the best energy provider for their business. SaveOnEnergy.com helps customers facing a renewal deadline find the lowest electric rates quickly and easily, so customers aren't kicked onto a higher rate just because their electric contract expired.