While 586,000 customers have switched to competitive electricity suppliers and have saved even more money by doing so, my home town electricity utility--PPL Electric Utilities--is dropping its electricity generation rate yet again that it charges to customers who have not shopped for electricity. Why? It is passing through to customers lower wholesale electricity prices produced by low natural gas prices and the shale gas boom.
As of March 1, 2011, residential customers buying electricity from PPL will see their electricity rate fall from the current 7.769 cents per kilowatt-hour to 6.935 cents. The reduction will save a typical customer $8.30 per month.
This PPL generation rate decrease is just the latest of many. As of January 1, 2010, residential customers buying electric generation from PPL (again those customers who had not shopped or switched to a competitive electricity generation supplier) were paying 10.4 cents per kilowatt-hour. Just since January 2010, the PPL electric generation rate has fallen 3.465 cents per kilowatt-hour. Annual savings for a consumer using 10,000 kilowatt-hours per year are $346. Not bad at all.
Customers that have shopped have received even higher savings or have purchased products that meet their needs or preferences like green power. I have switched to a company that provides 100% wind power. Take a look at http://www.choosepawind.com/.