As a member of the state Public Utility Commission in the 1990s, Hanger was one of the architects of electricity deregulation, which is coming into full force for Peco's 1.6 million customers after more than a decade of transition.
On Jan. 1, restrictions will be lifted that made Peco's territory unwelcome to alternative suppliers. Though Peco will distribute power and send out bills, customers are free to choose the company that generates their electricity.
Customers are not obligated to switch suppliers. Those who remain with Peco will accept a default rate known as "the price to compare." The rate is 9.92 cents per kilowatt-hour, a price that will be adjusted quarterly to reflect market changes.
At least 18 companies now are making offers to residential customers, some offering fixed rates, others offering rates that will vary from month to month. So far, more than 25,000 Peco customers have switched suppliers, according to Cathy Engel, the utility's spokeswoman.
The best fixed rates offered for a one-year term are about 8.9 cents per kilowatt-hour, roughly 10 percent below Peco's price to compare. A typical residential customer who uses 750 kilowatt-hours a month would save $90 a year.
Several suppliers, such as North American Power and Viridian Energy, are offering discount supplies that derive part of their energy from renewable sources, such as wind generators or solar farms. Their offers are variable rates.
But at least two suppliers are offering 100 percent renewable power at fixed prices for one year: BlueStar Energy Solutions, an Illinois supplier, is offering 9.348 cents per kilowatt-hour - almost 6 percent less than Peco's default rate. And the Energy Cooperative Association of Pennsylvania, a nonprofit group, is offering 9.79 cents per kilowatt-hour.
