WHAT IS A RATE CAP?
In 1997, Pennsylvania passed the Electricity Generation Customer Choice and Competition Act. This act "capped" the cost of electricity, essentially freezing the rate you paid for the cost of the electricity itself.
WHAT DOES IT MEAN THAT THE RATE CAP IS BEING LIFTED?
Since 1997, when the rate cap was enacted, the costs of generating and transporting energy have increased. When the rate cap is lifted at the end of December 2010, your rate will no longer be frozen and will reflect current market conditions.
WILL MY RATES GO UP ONCE PECO LIFTS THEIR RATE CAPS?
In short, yes. We estimate that average residential customers and small commercial customers will see a moderate increase; although, we do feel that competition might soften the impact.
HOW ARE RATES DETERMINED?
Rates are based on the price of electricity on the wholesale market. This can vary month to month, but if you sign up for a the Price Protection Plan, your rate will be fixed* for the length of your contract.
WHAT DOES IT MEAN THAT I HAVE A CHOICE IN ENERGY PROVIDERS?
PECO has been your sole energy provider. Once the rate cap is lifted, you’ll be able to choose your supplier. This means there will be many plans and rates to choose from.
WHAT HAPPENS IF I CHOOSE AN ELECTRICITY-GENERATION SUPPLIER OTHER THAN PECO?
Basically, the only major change you’ll see is the rate you pay. PECO still sends you your bill and provides service if there is an outage.
IS CHOOSING A NEW ENERGY SUPPLIER SAFE?
Absolutely. The Pennsylvania Public Utility Commission will still enforce consumer protections and regulate energy delivery. When deciding on a new energy company, consider these items: