Energy prices have cratered, and competition is passing savings along to electric customers.  Electric rates in Connecticut, Massachusetts, New York, Maryland, and Texas, to name a few, have all fallen precipitously because those states have competition in their electric industry, meaning customers can choose their energy supplier and reap the benefits of lower prices. 

Even though natural gas fell to a mere $3/MMBtu last week — the first time gas has been this low since August 2002 — and even though wholesale energy prices from Delaware to Michigan have fallen 40% percent, there are still some states actually seeing record increases in electric rates.

One of them is Michigan, where for a decade competition kept rates in check, as the threat of losing customers to alternative energy providers kept the state’s monopoly utilities from raising rates.  But last year, the monopoly utilities won a major coup — a state law that rescinded competition, and capped the amount of customers that could choose a competing supplier at 10%.

What has happened since?  Predictably, rates have skyrocketed, now that utilities have an uncontested lock on 90% of electric consumers in the state.  Utilities immediately filed for rate increases (even though they had just won approval for increases in 2008), and thanks to another new law, they can “self-implement” higher rates before the Public Service Commission even rules on their desired prices.  The utilities are also charging customers more through line-item fees and other “add-ons” that aren’t part of the volumetric rate.

Those price hikes have sent customers into the market to choose another provider.  Electric choice is so popular right now that the 10% cap on choice has already been hit at one large utility, Consumers Energy.  That means, as The Grand Rapids Press put it, “If you have a business and want to shop around for electricity rates lower than what Consumers Energy offers, you’re out of luck.”  Customers will be stuck paying whatever price the utility wants.

The Grand Rapids Area Chamber of Commerce noted that because businesses and manufacturers will be stuck paying the utility’s higher rates, their ability to compete will be harmed.

What does this mean for Pennsylvania customers?  Like Michigan, Pennsylvania is about to end it’s “transition” period with electric choice for many parts of the state.  During this transition, rates have been capped, and there have been limited amounts of switching in most areas of the state (although thousands of business customers are saving money by choosing a different provider, particularly in the Pittsburgh area).

Like Michigan, some Pennsylvania politicians want to end choice when the rate caps come off, meaning the customer could only buy from the utility.  What’s happening in Michigan right now shows why this would be a bad idea.  Energy prices are falling in about a dozen states with electric competition, including Pennsylvania.  The lack of choice in Michigan is resulting in higher electric prices despite a weak economy, lower electric demand, and plummeting prices for fuels and wholesale energy.  Pennsylvanians need to stand up for competition and make sure they have the right to shop for a lower electricity rate.

As noted by former U.S. Energy Secretary Federico Peña:

“[Michigan] Customers, including many businesses as well as state and local government agencies, schools, universities and others struggling in today’s challenging economy, are now locked out of lower-priced electricity options available in the competitive marketplace … Other states contemplating a return to the monopoly model should learn from Michigan’s experience and not shut the door on competitive choice for consumers.”

Even though electric rate caps have not expired in much of Pennsylvania yet (and won’t until 2010 or 2011), thousands of Pennsylvania customers are already shopping for a lower electric rate by choosing an alternative energy supplier.  Customers can quickly find cheaper electricity rates by using SaveOnEnergy.com to get energy providers to compete for their business, all with just a few clicks of the mouse

In the Philadelphia area, PECO’s rates are still subject to rate caps.  However, the rate caps were set so high, that the recent recession and accompanying fall in power prices mean that competing energy companies can offer customers savings over the rates PECO charges.

In fact, more than 20,000 customers in the Philadelphia area are already buying their electric supply from a company other than PECO, saving money and getting flexible products and better customer service.

While several large utilities still have rate caps, customers out west have had a choice of alternative energy suppliers for years, as rate caps ended earlier in those service areas.

For example, at Duquesne Light, which serves Pittsburgh and surrounding areas, more than half of industrial customers are shopping for electricity to save money on their electric bills.  About 20% of residential and commercial customers have also chosen a new power provider.  At nearby Penn Power, covering areas around New Castle and north of Pittsburgh, over two-thirds of industrial customers are shopping, while 13% of residential and commercial customers have chosen an alternative supplier.

SaveOnEnergy.com puts the power of competition in the hands of Pennsylvania electric customers, by making it easy to get the lowest rates from competing suppliers.  Through SaveOnEnergy.com’s online exchange portal, business customers can have up to eight electric companies compete head-to-head to win their business, meaning businesses can get the lowest rate possible.

SaveOnEnergy.com also ensures customers get a reputable, reliable electric company, in addition to a low rate.  The industry experts at SaveOnEnergy.com screen all energy providers and only recommend those with sound financial footing, high levels of customer service and innovative products.  That way, Pennsylvanians shopping for a new electric provider for the first time can save money confidently, knowing they’ll still be served by a reliable and dependable company.

Starting January 1, 2010, electric customers in the Lehigh Valley region of Pennsylvania and other parts of the PPL territory could face rate increases as high as 40% for some business customers as a decade old rate cap expires.  PPL’s service territory includes Allentown, Harrisburg, Scranton, Wilkes-Barre, Lancaster and surrounding regions.

However, customers can take one simple step to cut the projected rate increase in half — shop around for a competing energy supplier.  And SaveOnEnergy.com makes finding a lower electricity rate simple and easy for Pennsylvanians, many of whom are now shopping around for a cheaper electric company for the first time.

Pennsylvania was a pioneer when it comes to letting customers shop for a better electricity company, bringing competition to the electric industry in 1996.  The electric market was an early success in the 1990s which saw millions of customers shop around for a lower electric rate, or for better service or a renewable energy product.  However, because of market rules in the state, the market became dormant in the early part of this century.

But with prices projected to skyrocket at PPL starting January 1, 2010, customers are again seeking out competing offers for their electric supply.  PPL has conducted five procurements for its power needs in 2010, with one remaining procurement scheduled.  Based on procurement prices to date, generation rates at PPL for medium sized business customers are projected to increase 40% over today’s rates.  Small business customer rates are likely to increase 21%, while residential rates are expected to increase 33%.  Large business rates will be set this fall.

By just choosing an alternate generation supplier, customers can save substantial money.  Based on where current offers from competing energy providers are, customers could cut the projected rate increase in half, just by shopping for a new electric company.

SaveOnEnergy.com makes shopping for a lower electric rate fast and easy for business customers, meaning they can spend more time running their businesses instead of sifting through offers in the new and complex electric market.  Through SaveOnEnergy.com’s exclusive online retail exchange portal, SaveOnEnergy.com puts the power of competition in the hands of Pennsylvania businesses.  All that customers have to do is enter a little information about their business and electric usage, and the information is instantly transferred to up to eight competing energy suppliers, who tailor their best rates to win the customer’s business.  By pitting up to eight competing energy providers in head-to-head competition, customers are assured of getting the lowest rate and making competition work for them. 

With just a few minutes and clicks of the mouse on SaveOnEnergy.com, Pennsylvanians can avoid the electric rate shock expected January 1, and start saving money on their electric bills.

SaveOnEnergy.com, the fastest and most convenient way to find a low electric or natural gas rate, announced it has named 25-year energy industry veteran David Roylance as its new President and Chief Operating Officer.  Roylance’s expertise will further solidify SaveOnEnergy.com as the authority on North American electric and natural gas competition and online energy comparison shopping.

Roylance will oversee day-to-day operations of the company and will also be responsible for the expansion, development and growth of SaveOnEnergy.com in both the commercial and residential fields in North American markets that allow customers to choose a lower electricity rate or natural gas rate.

“The energy market remains complex and competition is increasing,” said Roylance. “From an individual shopping for better electricity rates to a business executive looking to effectively manage corporate costs, SaveOnEnergy.com is committed to providing transparent, convenient and effective tools that require energy suppliers to aggressively compete for business.  I am thrilled to help grow SaveOnEnergy.com’s presence in deregulated markets across North America.”

Only SaveOnEnergy.com offers business customers its exclusive retail exchange portal, which allows customers to get head-to-head rate quotes from up to eight competing energy providers. 

SaveOnEnergy.com also makes shopping for a residential electric or natural gas rate simple and easy, taking the work and confusion out of finding the best electric or natural gas rate.

“With David’s more than 25 years in energy, half of that with Reliant Energy, we have secured veteran experience to help grow SaveOnEnergy.com,” said Brent Moore, SaveOnEnergy.com’s founder and Chief Executive Officer.

“David’s significant industry experience and customer relationships, particularly with large commercial and industrial users in deregulated markets, will grow our commercial side of the business in North America.  I’m confident his leadership will strengthen our efforts to become the leading online shopping destination for consumers looking to save on energy,” Moore added.

Most recently, Roylance was senior vice president of Houston-based Reliant Energy.  Since 2001, Roylance has led Reliant’s expansion of commercial and industrial sales and marketing outside of its native Texas market, including successful launches in Northeast markets such as Maryland and New York, as well as Illinois.  In 2009, Roylance also added residential sales to his responsibility.  Previously, Roylance served in several other capacities with Reliant, including director of natural gas trading and marketing, and he also helped establish Reliant Europe’s presence in wholesale energy sales and marketing.

Prior to joining Reliant in 1998, Roylance rose through positions of increasing responsibility at ConocoPhillips’ domestic and international operating units, starting as an analyst and, ultimately, rising to director of natural gas trading and sales throughout the Southwest region of the United States.

With this executive hire, SaveOnEnergy.com will open an office in Houston – where Roylance is based.

“Houston is a hub for energy competition,” noted Moore. “David’s presence in Houston will allow us to provide enhanced leadership to a competitively supplied energy marketplace. We couldn’t be happier about this relationship.”