As part of the restructuring of Pennsylvania’s electric market, the price of electricity is now based on wholesale market prices.
Deregulation has transformed utilities like PECO from a company that produced electricity to a company that now purchases electricity. PECO purchases electricity, for customers not purchasing the electricity they use from a competitive electric generation supplier, and delivers electricity to all customers through our neighborhood poles and wires.
In total, the electricity and natural gas used by customers – or the commodity charges – make up about two-thirds of a total bill. This is the portion of the bill that can be purchased from a competitive electric generation supplier. For customers not shopping with a competitive supplier, these charges are passed along directly to customers at exactly the price that PECO pays. Electric commodity costs fluctuate – either increasing or decreasing – based on many factors including wholesale prices when purchases are made, the amount of electricity purchased and the length of purchases. These costs change quarterly, as market prices change. PECO will continue to update its current and estimated price to compare to help customers evaluate offers from competitive suppliers.
The delivery charge, or the portion of the bill that covers PECO’s costs to deliver electricity and natural gas, is about one-third of the bill. These charges are set by PECO and approved by the Pennsylvania Public Utility Commission (PA PUC).
You can manage your energy costs by finding ways to use less energy. Using less energy will save you money and also help the environment. To find all the ways you can save energy and money for your home click here; for your business click here.
You also may be able to save money by shopping with a competitive supplier. And remember, whether you are purchasing your electricity from a competitive electric generation supplier or from PECO, we will continue to safely deliver electricity, provide billing and customer support, and respond to outages and other emergencies for ALL customers.
To learn more about shopping for electricity or to find a competitive electric generation supplier visit the Pennsylvania Public Utility Commission’s website at www.papowerswitch.com.
To learn more about shopping for gas or to find a competitive Natural Gas Supplier visit the Pennsylvania Public Utility Commission's website at www.pagasswitch.com/