Pennsylvania Bill to Fully Transition to Robust Electricity Market

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On October 9, Senate Bill 1121, sponsored by Senator Mensch, was introduced. The Act will complete the transition to a fully competitive retail electricity market by effectively ending utility provided default service for residences and businesses. Following a comprehensive education campaign and notice period, customers that have not shopped for their electricity by June 2015 will be transitioned to the competitive market through a transfer process to a participating electric generation supplier (EGS) such as Direct Energy.

The EGSs will be provided by the Pennsylvania Utility Commission (PUC). And the utilities will continue doing what they do best for all customers – deliver electricity, read meters, maintain the distribution system and respond to outages and other service emergencies, just as they do today.

The bill has many benefits to customers, Pennsylvania’s energy market and to the Commonwealth. In summary, the bill…

1. will create a fully competitive retail electric market;
2. will ensure that all customers receive reliable electric service and;
3. will allow customers to have access to an array of innovative products and services designed to meet their individual needs, which only a fully competitive retail market can deliver.

Benefits for Customers

• Customers who are transferred will receive a competitively procured one-year fixed price.
• There will be no fees for sign-up, switching or cancellation.
• EGSs will pay a $50 cash bonus to each customer.
• The Act will give customers access to more electricity products and services tailored to their needs.
• The Act will place downward pressure on prices.

Benefits for the Commonwealth

• EGSs will pay $100 to the Commonwealth for each customer acquired through the PUC-approved transfer process. This is estimated to generate $320 million for the state and its citizens.

Why You Should Care

This bill will affect businesses and residences in Pennsylvania. If your business is in support of this bill, and you want to help, please contact Ron Cerniglia or Ashley Ramer. If you or an employee is in support of this bill passing, then please take a couple of minutes and take action via the Energy Consumers First website.

Lastly, stay tuned for a series of seven posts that will tackle the many myths this bill is bringing to the surface.