PPL Electric Utilities Helps Customers Save With Energy Choice

electric choice

PPL Electric Utilities delivers electricity to more than 1.4 million homes and businesses across the state. In addition to providing reliable service they also invest in energy efficiency and other environmentally responsible programs to help their customers save money. Customers can save on their energy costs with PPL Energy Choice, which gives them the opportunity to choose a retail electricity provider and realize potential savings on their supply rate.

Unlike utilities, which set rates based on their own cost of generation, alternative retail suppliers shop deals on the wholesale market to offer competitive rates. This means that PPL’s standard offer service, or “Price to Compare,” reflects current market conditions and can change over time. However, because these alternative rates are not controlled by the Pennsylvania Public Utility Commission (PUC), they may not be the lowest available.

In recent months, wholesale prices have risen sharply, driving up the price of energy produced and delivered to consumers. The higher wholesale costs have prompted many PPL-delivered energy companies to raise their standard offer service rates. While the increases are modest, they will have a large impact on customers who choose to stick with their default supplier once their contracts expire.

Consumers who don’t take action to switch to a new supplier after their current contract expires risk losing any savings they may have realized. Though the PUC requires that providers send two notifications when their contracts are set to expire, a substantial number of customers ignore them and fail to act. This is often to their detriment, as the vast majority of these customers are then automatically switched to plans that cost more than the utility’s default rate — in some cases 50% more.

In a move designed to reduce customer confusion, the PUC recently approved a request by the utility to modify its standard offer plan to require that it be billed to all customers who don’t affirmatively elect to stay with an alternative supplier. The PUC’s decision came after a hearing in which an administrative law judge recommended the company be allowed to charge all standard offer customers at its default rate.

PPL owns and maintains the power lines, poles, and meters that deliver electricity to homes and businesses in its service area. Its 50,000 miles of lines are enough to circle the globe twice. In addition, the utility is committed to helping its customers save money on their electricity bills through Energy Choice and by offering in-home audits and heating rebates. In fact, the utility spends $90 million each year on energy assistance programs. Customers in the PPL service area can learn more about these programs by visiting our page on Energy Savings.