But Peco is not losing any business. It still makes money off every customer who gets power through its wires, much as a turnpike collects a toll from every vehicle because it owns the road.
Public officials who have been promoting electrical deregulation as a way to reduce costs and encourage efficiency said they were heartened by the market response.
Robert F. Powelson, a member of the Pennsylvania Public Utility Commission, said Thursday that the PUC was "encouraged by the number of people who have chosen to save money by shopping for their electricity."
Under the state's Electric Choice Act, the power industry was basically broken into two parts - companies that generate electricity and traditional utilities, such as Peco, that distribute power on their networks of wires. After more than a decade of transition, the law went into full effect for Peco customers Jan. 1.
Customers are free to shop around for a company that generates electricity; that power-supply charge accounts for about two-thirds of a typical bill. Utilities such as Peco still do the billing and customer service, but they make a profit only from a distribution charge, not from generating the power.
No one is obligated to switch. The PUC requires Peco to buy power from generators on behalf of customers who don't choose an alternative supplier, and to supply the electricity at cost. The default rate is known as the price-to-compare.
More than 20 suppliers have entered the retail market, and some are aggressively marketing discounts of up to 10 percent off Peco's default rate of 9.92 cents per kilowatt-hour. A typical customer would save about $90 a year.
Customers can choose from fixed or variable rates, which change monthly according to market conditions. Some suppliers are offering "green" power that is partly or entirely derived from renewable sources.
Irwin A. "Sonny" Popowski, Pennsylvania's consumer advocate, said he believed that customers who locked in during the winter with a low-cost, fixed-rate supplier might multiply their savings in the cooling season.
"I think the savings will be even greater in the summer because Peco's price is expected to go up," he said.
About 20,000 more customers each week are switching to alternative suppliers, Peco spokeswoman Cathy Engel said.
Contact staff writer Andrew Maykuth at 215-854-2947 or amaykuth@phillynews.com.
More information on electric choice is available from the PUC at www.papowerswitch.com
