MetEd

Pennsylvania’s organized electricity market unleashed “astounding” competition among energy market participants and switching rates among customers in 2010. However, with only two months remaining until all remaining artificial rate caps expire on January 1, 2011, the best may very well be yet to come.
 

Electricity competition is at an important crossroads in Pennsylvania. Six months ago, rate caps expired in one Pennsylvania utility’s service area, and six months from now rate caps expire in the rest of the state. For the first time, the state’s entire retail market will be open to competitive forces.
 
But already, the success of competition is clear. Wholesale electricity prices are decreasing, and hundreds of thousands of consumers are switching power suppliers to obtain lower-cost electricity than is available from their incumbent utility suppliers.