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Electric suppliers

10 years ago

About every 3 months I am swamped with letters, phone calls and finally even door to door people trying to get me to change part of my electric supplier, the delivery part. I have tried to understand the different sections of who does what in the different sections of the bill and am at a loss.
I live in PA and have First Energy and West Penn Power. First Energy owns West Penn Power but I can change FE and keep WPP. I am lost. I checked the rates of what each charges per KWH and there are 2 or 3 cheaper. Some have locked in rates for 6 months, some for a year. Some have a cancellation fee, some do not. I have read reviews on the 3 lowest and there are as many bad as there are good on each. Help, I feel foolish not to look into this if I could lower my electric bill even $20 a month. Could someone please explain electric charges in plain simple English to me?

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Comments (6)

mike_kaiser_gw
10 years ago
What this is about is changing the company that generates the electricity. So instead of ABC Power Plant it's going to come from XYZ Power Plant. All the local distribution remains exactly the same. No new wires coming to your house or anything like that. If you have a problem, you call the local power utility. If there's a local power outage it's going to effect you just like your neighbors.

A while back our town negotiated a rate with a different supplier for electricity. We weren't forced to change, it was just an option. The only change is that the bill is a little smaller. The lights still work the same. ;-)
kirkhall
10 years ago
Huh. Who knew you could "change" power companies?
In my area, there is only 1 power company that serves each location. Our rates are dictated to us.
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LuAnn_in_PA
10 years ago
Yeah, I have the option to change but haven't.
The competition has higher rates than I currently pay!
Chemocurl zn5b/6a Indiana
10 years ago
Could someone please explain electric charges in plain simple English to me?
I think I see it as comparable to when long distance was deregulated. Remember that? Companies were clamoring to get to provide you with 'their' long distance service.

I would research them as much as you can and ask friends and neighbors what they are choosing to do and why.
joyfulguy
10 years ago
In this area, most of those people deal only with the cost of the generation of the electricity that you use.

At the most that is about a third of my power bill, which runs about $100.00 per month, usually more like a quarter. The major cost is the cost of delivery, and that is done by the people who own and operate the grid, the towers and lines that bring the electricity to you.

We also have admin costs and taxes ... plus we have a charge for debt retirement, and since the people who generate haven't built a major generating station in 40 years, you'd think that they'd have money in the till to pay for a new one.

The portion of our power bills that deal with the generating part are about to undergo a major rise, for the powers that be allowed a number of agencies that produce by using wind or solar to receive a guaranteed rate much higher than has been charged in the past.

ole joyful
emma
10 years ago
We don't have another elec company in our city but we do have two gas companies. There is no option to change servers. It is set by the area you live in.

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