Pennsylvania Looks to Texas for Advice on Electricity Deregulation

Pennsylvania Looks to Texas for Advice on Electricity Deregulation

Pennsylvanian regulators concerned with the number of residents switching electricity providers turned to Texas for advice recently by inviting state industry experts to a hearing on Pennsylvania’s competitive electric market. “Texas is widely viewed as the most successful state in transitioning to a competitive model,” said Richard Hudson, Pennsylvania chairman of the Retail Energy Supply Association.

While the initial steps to transition to a competitive market have been successful, the Pennsylvania Public Utility Commission has been investigating additional steps that should be taken to ensure customers get the benefits of a robust competitive market.

According to Hudson, 60 percent of Pennsylvanian consumers have not switched residential customers in the PPL Electric Utility territory (and as much as 99 percent in other areas of the state).

Customers often are paying more than necessary by staying with the default-provider. As PUC Commissioner James H. Cawley said, “Customers are leaving a $100 bill on the sidewalk today.”

Barry Smitherman, chairman of the Texas Public Utility Commission, discussed at the hearing the savings Texas consumers have benefited since deregulation of the state in 2001—electricity rates are 31 percent lower in North Texas now than before deregulation.

Typical fixed-price options are in the 8 to 9 cents per kwh range, including the regulated distribution charges, significantly less than comparable rates in the PPL Electric Utility. In most of Pennsylvania, rates are 12 to 13 cents per kwh, Hudson said.

States in the early process of electricity deregulation often look to Texas’ success because of its low rates, abundance of retail providers and the growth in alternative energy sources, such as wind power.

Deregulation can mean many cost-saving benefits for your business. Using a trusted energy broker can help you take advantage of the market and make smarter business electricity choices. For more information, contact Live Energy today at 877-810-7700. One of our certified electricity advisors will help you figure out your options and lock-in to a rate that makes sense for your business.


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