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Electricity customers will have the chance to shop for cheaper suppliers to offset the cost from the removal of the decade-long rate caps. About 20 electricity suppliers will be available for this region, but apparently only two other than PPL will offer electricity to residential consumers.

Three residential suppliers are listed on the state's Public Utility Commission Web site. Those suppliers are Community Energy Inc., Liberty Power Corp. and Dominion Energy Solutions.

Looking closer, Community does not offer electricity. It provides renewable energy certificates and is working with PPL to market and supply its green power option, according to Jay Carlis, Community spokesman.

"My sense is that shopping for electricity will be a lot like shopping for health insurance. Individual buyers, such as residential customers, non-profits and small businesses, may not be able to purchase electricity in enough volume to obtain as good a price as large-volume purchasers," said Stacy Richards, director of the Energy Resource Center at SEDA-Council of Governments.

PPL Electric Utilities rates will jump to constant 13.8 cents per kilowatt hour after Dec. 31. That number includes all elements of the bill, including distribution and transmission, and represents an increase of more than 3 cents per kilowatt hour, according to George Lewis, PPL spokesperson.

Generation rates currently are tiered at 5.94 cents per kilowatt hour for the first 200 kilowatts hours, 5.23 cents per kilowatt hour for the next 600 kilowatt hours and 4.80 cents per kilowatt hour for the remaining kilowatt hours.

After the increase, they no longer will be tiered. Generation rates will jump to a flat rate of 9.95 cents per kilowatt hour, according to Lewis.

One kilowatt hour is equal to 10, 100-watt light bulbs using electricity for one hour. The average household uses 500 kilowatt hours per month. Heating and air conditioning costs will add to that number.

Average monthly use

When shopping around for suppliers, consumers may want to find out how much electricity they use in an average month by looking at their electric bill.

"Customers need three basic things to shop for electricity: their 'price to compare,' their electricity use, and access to suppliers. The 'price to compare' reflects the price they would pay if they don't choose an alternative supplier. That information will be mailed to all customers with their November bills," Lewis said.

The next step would be finding suppliers that fit a consumer's needs. A list of suppliers may be found at www.puc.state.pa.us/utilitychoice.com. Click on the electric choice icon and in the electric drop down, choose suppliers.

Computing difference

By computing the difference between PPL's rates and the lower supplier rates and figuring in the amount of electricity that is used per month, consumers will be able to figure out the approximate savings with each supplier.

"Not all electricity suppliers will offer similar deals. It is likely that electricity suppliers will want their customers to enter into long-term contracts that lock in an electricity price," Richards said.

Suppliers have been trying to get the word out about their services using many outlets, including inserts in electric bills, radio advertisements, ads in publications and direct mail campaigns.

One supplier that is willing to work with residential customers is Dominion Energy Solutions. It is offering 10 percent off of PPL's rates if the customer contacts them now and locks in the rate prior to Dec 31.

Price is primary incentive

"We found that price is the number-one incentive and people are concerned about reliability. We are one of the largest providers in the country and a Fortune 200 company," said Daniel Donovan, Dominion spokesperson.

Although Liberty Power Corp. focuses on commercial customers, it offers solutions to residential customers as well.

"Currently, the 12-month fixed rate is 9.87 cents per kilowatt hour and the fixed 24-month rate is 10.35 cents per kilowatt hour. The rates will rise after the beginning of the year. Enrolling now will lock in the rate before the increases," said Yamil Moya, Liberty sales representative.

More information may be found at www.puc.state.pa.us/utilitychoice.