Direct Energy Business
Market Data For Your Home Contact Us

How Pennsylvania Businesses Saved $3.4 Billion on Electric Costs

read | Share:

In 1996, the average retail price for electricity in Pennsylvania was 15 percent higher than the national average. By 2015, the average price was 0.1 percent below the national average.

What accounted for the difference? Simply put: electric choice. 

Recently, the Energy Research Consulting Group (ERCG) released an independent study examining the retail electric savings achieved by commercial customers in a number of deregulated states and regions.

Pennsylvania has a relatively long history with electric choice — one that has certainly paid off for the state's businesses. Between 2011 and 2015, the Keystone State's commercial customers saved an estimated $3.4 billion simply by switching to a retail energy provider. That directly translates to an average of $682 million in commercial electric savings each year. 

What factors contributed to the high rate of commercial electric savings? Compared to other states, Pennsylvania’s rate design is more reflective of market conditions as utilities procure power more often and for shorter contract periods. Cheap natural gas has also played a major role.

Related Articles:

ERCG's electric savings analysis follows another report by the Kleinman Center for Energy Policy at the University of Pennsylvania. The study — which was conducted 20 years after the state's Electricity Competition and Customer Choice Act — found that the breakup of electric utility monopolies and a competitive market structure saved Keystone State consumers more than $800 million in 2015 alone.

Our new eGuide further showcases the savings achieved in states like Pennsylvania and highlights how your business can potentially make the switch to a retail energy provider. The slideshow below offers a brief preview of the report. 

Learn much how businesses in other states have saved through electric choice. 

Download the Full Report

Posted: June 07, 2017