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Fewer electric options in residential market
Sunday News
Nov 08, 2009 00:06 EST
By JON RUTTER, Staff Writer

Suzy Homeowner, too, can save money by switching electric suppliers.

But she has fewer alternatives to choose from, at the moment, than commercial/industrial power customers.

According to the Pennsylvania Public Utility Commission, just one company, Dominion Energy Solutions, is known to be actively wooing PPL Corp.'s residential market.

Consumers in that market face a 30 percent rate increase in January. Dominion sent out a limited-time, 10 percent savings offer last week in PPL territory.

More competitors are expected to enter the ring soon.

People should consider switching, said Tom Tuffey, director of the PennFuture Center for Energy, Enterprise and the Environment, in Philadelphia.

PPL began warning people in 2006 that rate caps would expire this year, PPL spokesman George Lewis said. "It wasn't necessarily the most popular message."

Now, industry sources say they are still trying to wake consumers up to the transition.

Suppliers should be licensed, they say. Consumers should weigh offers and check fees carefully.

But there's little inherent risk in switching, PUC Chairman James Cawley said.

Should an alternative supplier be unable to continue service, he noted, "The worst that can happen to you is you go back to the higher default prices" of the distribution company.

Companies licensed to supply electricity in Pennsylvania are listed on the PUC's Web site, puc.state.pa.us.

Dominion, which is also pursuing the commercial/industrial market, is one of more than 50 licensed companies included on the list.

The direct mailing sent recently by the Richmond, Va.-based generator and supplier offers to chop 10 percent off PPL's estimated 2010 "price to compare," which is 10.55 cents a kilowatt/hour.

The "guaranteed savings program" extends from the January 2010 meter read date through the December 2010 read date. The enrollment period closes at the end of this month and is limited to the first 25,000 customers who respond.

There are no enrollment or cancellation fees, according to the mailing, and PPL will continue to read meters and do the billing.

"We're offering electrons for a little bit lower price, company spokesman Dan Donovan said. "We're buying them for a little bit less than PPL is buying them."



Jon Rutter is a staff writer for the Sunday News. His e-mail address is jrutter@lnpnews.com.


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