As Deregulation grows closer in the PECO market some things may remain unclear when it comes to judging prices. The first question is how much am I currently paying? PECO offers a “price to compare” which gives customers a price to use for comparison between the current prices and an alternate supplier. In addition to offering their current price they also list the future price at the beginning of next year, when deregulation officially kicks in. As with most utility bill pricing there can be some confusion. The current rate is calculated from two charges, generation and transmission, and is 9.94 cents per kWh, the rate at the beginning of the year will be 9.92 cents per kWh for three combined charges. At first glance this appears to be a great price decrease! Don’t get excited just yet, things will change in the future.
To begin a new charge will be added to your PECO bill. This charge is being labeled as an Alternative Energy Portfolio Standard (AEPS) fee which will remain consistent at .12 cents per kWh. The three fees now combined to make your total charge are the AEPS, Generation and transmission fees. The other distribution related fees will remain consistent regardless of the supplier. The price to compare is the combined total of the three fees. The rates will change regularly, depending on the season. The estimated rates for April 1 - June 30 are 10.16 for below 500 kWh used and 11.40 for above 500 kWh used. For the same time period last year the rate was 6.92 for under 500 kWh consumed, that equals an estimated increase of 31.9%! This is even larger than the close to 30% increase PPL customers saw a year earlier.
What does this mean for the average consumer? It means that momentarily your electric rates may get slightly lower, even with the addition of a new fee, which at first seems great. But be weary of the impending summer. Electric rates will generally fluctuate as heating season ends and air conditioning begins, this year looks to be a real shocker.
Thanks to the new deregulated system you do not have to stand for the drastic increase. You have the ability to pick your electric supplier. One example for PECO customers is Viridian Energy. Viridian prides itself in saving consumers money over the course of the year. They currently boast $35.56 a month in savings for customers in the United Illuminating district. The ability of PECO customers to sign up for Viridian started November 22. The sign up is hassle free and only requires an account number from your current utility bill. There are no contracts or sign up fees. The only thing you stand to lose is your money in the form of higher electric bills.
With the current state of the economy many individuals are looking for ways to reduce their bills. As money begins to grow tight a higher concentration of people are beginning to look in new areas of their budgets to find extra cash. Utility bills have a tendency of being written off as something necessary that cannot be changed, but that is no longer the case. Energy audits, home energy monitoring and other resources are available to reduce energy bills substantially. If you have already exhausted every opportunity to lower your energy bill there may be further hope in the form deregulation.
The deregulation of electricity allows for multiple suppliers to compete for the lowest price, creating a free market system. In select deregulated states users now have the ability to shop for their electricity provider. Many users have already shopped around for the best and cheapest rates on car insurance, cable, internet service providers, cell phone coverage and groceries; deregulation allows you to shop for your lowest electric provider as well. If you have already exhausted all other options in your budget it may be time to consider investigating deregulation, many states on the East coast and Texas are deregulated, and the numbers are growing.
As 2010 winds down and 2011 approaches many changes are being ushered in with the dawning of a new year. One of the changes may be your local utility becoming deregulated. One thing to watch out for is higher rates. Deregulation carries with it the removal of government caps on prices; some supplier raised their rates by up to 30% when they became deregulated. One company to consider is one that prides itself in offering lower rates and providing green energy. Viridian energy, available on the East Coast, offers 20-100 percent green energy and adjusts its rate to be lower than the competition. If your utility has deregulated or is about to become deregulated you do not have to accept and pay the higher rates, you can now switch to a new provider. The same principle applies for cell phones, cables, insurance and more, why not for your electricity as well?
As Deregulation spreads throughout the market there is one thing that is becoming increasingly prevalent. Many electric providers that previously had capped rates are raising their rates substantially. An example of a recently deregulated supplier in Pennsylvania is PPL. The average residential consumer that did not pick an alternative supplier for their electricity saw a rate increase of almost 30%. PPL remarks that part of their rate increase and deregulation preparation was to make users aware that they could pick their supplier; they mentioned that this effort was undertaken three years in advance. In addition to increasing awareness they also increased energy conservation and efficiency programs.
The concept of being able to pick your electricity supplier is still very foreign to most consumers. In the past if you moved to a new area you didn’t ask for multiple suppliers that sold electricity; you simply signed up for the single utility that sold for your area. A lot of the caps that are currently in place are because most locations only had one utility provider. Deregulation now allows users in select states to choose who provides their electricity, which allows them to look for the provider that meets their needs at the lowest price. For some the price may be the only important aspect, others may want something more, such as green or renewable energy.
Regardless of what you are looking for Viridian Energy meets most requirements and has a hassle free sign up process. For PPL customers Viridian offers a lower rate and has already met the 2020 Renewable Portfolio Standards (RPS) of 20% green energy and can even supply 100% green energy if requested. The Viridian rate is actually 6.3% less than the PPL rate. Most people would expect to pay more for green energy, but with Viridian the average PPL home saves $138.60 a year and helps the environment. Once you have received a lower rate from Viridian consider monitoring and managing your usage with a home energy monitor to decrease your bills even further. A combination of a home energy monitor and Viridian could easily result in savings of 18% or more saving you $400 a year on your electricity bill. In these tough economic times can you afford not to save as much as possible?
The Pennsylvania electric company PECO will be opening their doors to deregulation starting the beginning of 2011. This opens up a brand new market full of potential. A cap has been placed on PECO’s electric rates for quite some time and upon the removal of this cap they plan to raises their rates significantly. With the new deregulated system PECO will allow new electric retailers to supply electricity to their customers, if customers do not pick a supplier PECO has a default supplier lined up. In fact, PECO is almost asking its users to switch to a new supplier by raising its rates by roughly 10%. If you are PECO users you need to become aware of your options.
Other Pennsylvania electric companies, such as PPL, have already been deregulated. When a utility company becomes deregulated it allows the users to pick who produces their electricity. The electricity you consume is made up of several different factors and in most cases the company that produced the electricity is not the same company that delivers the electricity. Looking at your utility bill you can witness this first hand by examining the various rate breakdowns. There will be generation, transmission, distribution and transition charges. Under deregulation competition is allowed between suppliers and competition generally leads to lower prices.
One company in particular called Viridian Energy will be servicing the PECO area. Viridian is distinct because their cheapest and most affordable package offers users 20% wind energy. Other options allow users to choose 100% wind energy if they desire. According to the Viridian Website users that switch generally save $35.56 a month, or, $426.72 a year. Viridian will start accepting applications from PECO customers Nov. 22. The Viridian sign up is simple, there is no enrollment fee, no cancellation fee and you are free to cancel at any time. Deregulation opens up multiple opportunities to find and receive lower electric rates.
There will always be various trends that appear in the market on a daily basis. With the poor economic times one of the trends starting to show up is free trials or 90 day “hand shake” offers. In multiple cases these “hand shake” offers lead into a contract or require a deposit. Another trend starting to rear its head is the complete abolishing of contracts. From cable companies to cell phone providers numerous companies are realizing that job status and economic wealth is fluctuating and no one wants to be tied down by a contract anymore.
Another trend appearing recently is going Green or focusing on the environment. Green can mean several different things and has been used very loosely by some people. The common trend in going green is not without a good purpose. The government has begun to crack down on pollution and carbon. One of the biggest guidelines for the Green trend is the Renewable Portfolio Standards (RPS) guidelines set by states and federal governments alike requiring that all electricity produced come from at least 20%-33% renewable alternative sources. Anyone can claim to be “green” or offer “no contracts” the trick is the small print. As deregulation hits the electric market how can you be sure an electric supplier is meeting green standards and offers easy contract free sign up?
One company in particular, Viridian Energy, meets both trends by offering 20%-100% Green energy from Wind Farms. Not only does this energy meet green certification it also comes at a rate that is cheaper than the standard utility provider. Viridian meets other trends by allowing users to sign up without needing a contract. There are no sign up fees or contracts and in most cases it can be completed easily over the phone or online, all that you need is your last utility bill. Offering cheaper rates, no contracts, and green energy there isn’t much to lose by switching to Viridian.
The idea of deregulation may be completely new to a lot of people, and this is completely understandable. For the longest time consumers didn’t have a choice about who supplied their electricity, when you moved to a new area you took what was offered. Deregulation began in the late 90’s and ever since then it has opened up a lot of opportunities throughout the market, but what is deregulation, and how does it affect the average user?
Simply put deregulation allows consumers to choose who they buy their electricity from. It is very similar to cell phone providers; you have the option of which cell phone provider to go with, you can choose Sprint, Verizon, AT&T, or another package. Just like with cell phone providers you have to weigh the benefits of each provider. It is this same concept that makes deregulation beneficial to consumers. Competition within the market gives providers motivation to have competitive rates while providing the best product.
Deregulation splits the electricity supply line into two parts. Your utility company will still deliver the power; deregulation allows you to decide who supplies it. The two separate parts makes things even simpler because you will still get the same electric bill from the same company; all that will change will be the rates. Now you have the power to choose the provider of your electricity in order to get exactly what you want; good service and a low rate.
In terms of reliable and unique services at lower prices nothing can compare to Viridian energy. Viridian has already met the 2020 federal environmental requirement that their energy be from 20% renewable sources. Viridian allows you to decide if you would like 20% wind energy or 100% wind energy. In most cases the rates you get for both options will actually be less than your current default electric supplier! In addition to this, your local utility does not make a profit from the supplier of the electricity, so they will not mind if you switch. Signing up for Viridian is extremely simple and all you need is a current utility bill! There are no contracts or cancellation fees and no hassle. Why wouldn’t you make the choice that saves you money and helps the environment? Sign up with Viridian today and start saving money and helping the environment.
Many non-profit organizations are faced with the challenge of the fundraiser. We see it all the time as new seasons begin. A co-worker bringing in a sign up sheet, children going around selling candy bars or even make your own pizza kits. The traditional fundraiser requires you to sell something and from that sell you gain the funds needed. What if there was a fundraiser that allowed you to sell something once and continue to make a profit month after month? In 7 of the electric deregulation states this has become a possibility.
Viridian energy offers special deals to non-profit organizations, it allows you to have a fundraiser that keeps giving returns each month. The idea is fairly simple, rather than selling someone a candy bar you simply have them sign up. Sign up is free, there are no fees attached, it is simple to do, there is no cancellation fee, it is hassle free and it will save the person who signs up money. Sound too good to be true? This is how the system works; generally for every candy bar sold you will receive one dollar, with the Viridian system you sign up a customer, they pay nothing, and in exchange get a cheaper electrical supply rate, and for you in return you get $2 each month!
It is a great system for non-profit organizations to fund their much needed improvements. Examples would be a church that needs to fund it’s new building project, or a youth sports league that needs to buy new equipment, or even a school play that needs a new set constructed. The fall season is here and with it comes all of the kids going back to school and starting up their after school activities, all of which mostly come with a fundraiser of some sort, why not make it a fundraiser that keeps giving back.
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