Switching Rates Continue to Rise in Mid-Atlantic States

The number of consumers switching to competitive suppliers has continued its trend of upward growth in four states with competitive markets, bringing competitively priced electricity to even more customers. These switching numbers come from recently released state data posted in Restructuring Today, and reiterate that electricity customers switching their power suppliers is a clear sign of the success of competitive markets.
 
Two new competitive suppliers entered Connecticut’s market in September, driving switching rates up in two incumbent utility service territories. In the United Illuminating territory, 51 percent of all Commercial and Industrial (C&I) customers, and 36.6 percent of residential customers shopped, increasing from 41 percent and 20.1 percent to start the year. In Connecticut Light & Power’s territory, C&I shopping rose to 53 percent and residential shopping rose to 30.4 percent.
 
In Maryland, marketers expanded the territories they offer competitive supply to, with two competitive providers entering the Allegheny Power and Delmarva Power territories and one competitive provider entering the Pepco service territory. Shopping rates rose across all territories in July, up to 10.3 percent of all statewide accounts and 43.1 percent of peak load being served by marketers. Even more promising, the percentage of time-of-use accounts being served by marketers grew to 14.5 percent – up from just 5.4 percent in May.
 
In New Jersey, overall retail power shopping was up and the residential market continued to sharply increase shopping rates. Over 9,400 new residential customers shopped in June across the four state utility territories – impressive when compared to the 3,300 new accounts in May and only 213 in all of 2009.
 
Pennsylvania, home to some of the most active switching nationwide this year, continued its robust growth. Four of seven utility territories reported growth in customers shopping in July, and rate cap expirations across the state portend even higher levels in 2011. The PPL Electric territory, which had its rate caps expire on January 1, 2010, continued to lead the state with a 4.2 percent increase in accounts across residential and C&I customers, with more than 55,000 new accounts in the residential sector alone.
 
The movement toward increased switching rates cannot be ignored. Customers, when empowered through competition, choose to participate in our nation’s competitive electricity markets by finding the best deal available to them.

Joel Malina | November 14, 2010