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Showing posts from August, 2013

Average Monthly Electricity Bills

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This graph shows a comparison of the average monthly electricity bill in Pennsylvania for Utilities' Price to Compare and the best ESCO plan.

The average price for using the Distributor's Price to Compare is $66/month, while the average price for switching to an ESCO is $52/month.

On average, a customer will save $14/month (amounting to about $165 in yearly savings) by switching their electricity to the cheapest ESCO electricity supplier. Comparing energy plans will allow a customer to choose between different types of monthly plans: fixed and variable rates, renewable generation, and promotional introductory rates.

This analysis used the following assumptions:

1 - Customers prefer "fixed term" plans to "variable" plans, as those give customers most certainty about their subsequent rates and bills.

2 - Average monthly electricity usage is 870kWh/month

Penelec Electricity Rate Comparison

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This time series shows a comparison of Fixed plan and Variable plan rates in the Penelec distributor region.

Takeaways:

1 - Until recently, the market was quite chaotic as far as consistency of prices goes - unlike what we have seen in other regions (and in analysis across all of Pennsylvania), the 2 year fixed plan was not the cheapest plan until most recently.

2 - The variable plan was the cheapest ESCO plan from Nov 2011 - May 2013. Important to note is that variable plans tend to be listed with their promotional "introductory price" as equal to their monthly tariff. As the monthly rates can change, and more detailed information should be sought by customers looking to switch electricity to a different energy supplier.

3 - Starting in May 2013, the market has begun to pan out in the same fashion as other distributor regions - the 2 year fixed plan is the cheapest, followed by 1 year and 6 month. The Variable rate now is at least as expensive as Penelec's Price to Com…