Competitive Energy Options for Pennsylvania

Pennsylvania’s commercial and industrial customers are concerned that electricity prices in the Commonwealth put them at a disadvantage with respect to competitors in nearby states. Retail rates (averaged over all rate classes) in three neighboring states increased by 13 to 118% when rate caps expired in those states. At the end of 2010, rate caps will have expired throughout Pennsylvania. Data compiled by the Industrial Energy Consumers of Pennsylvania indicate that load serving entities in the Commonwealth expect rate increases from 30 to 75 percent when the caps are lifted. The Pennsylvania Office of the Small Business Advocate reports that commercial customers have similar expectations. This study examines the electricity prices offered to commercial and industrial customers and evaluates options for competitive electricity prices for commercial and industrial customers.