"Pennsylvania is one of the most successful states," said Elizabeth Stelle of the conservative Commonwealth Foundation, which has monitored the slow rollout of electricity choice in other regions of the Keystone State. "We have more people switching or using alternative pricing here than any other state except for Texas."
But with electricity deregulation about to take root in the city and region, most local residents still have more questions than answers. The Daily News is here to help.
Q. Why is this all happening now?
A. Pennsylvania passed a bill deregulating the electricity market way back in 1996, when consumers here paid on average about 15 percent more than the national average. The Electricity Generation and Customer Choice and Competition Act meant that while the traditional monopoly utilities - that would be Peco for 1.6 million customers in the Philadelphia region - would still deliver your electricity, consumers could shop for a power generator.
But several factors rendered deregulation all but moot for more than a decade. The state and the utilities made a deal that allowed the companies to charge a fixed fee to recover their so-called stranded costs - bad investments in things like nuclear power plants - in return for a cap on regular kilowatt-hour rates that kept these low. Most Pennsylvanians pay less in inflation-adjusted dollars for their electricity now than in the 1990s.
The rate caps have been gradually lifted, with Peco customers in the final group on Jan. 1. That - coupled with the recession, which has lowered costs for electricity generators - has brought real competition, with at least 17 companies now poised to enter the Philadelphia market.
Q. Can I just stay with Peco, and what will happen if I do?
