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Customer Choice Information |
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Consumer's Dictionary for Electric Competition A Short Glossary of Standard Terms for Customer Communications |
Answers to Frequently Asked Questions How can I participate in the Electric Choice Program? There are two steps to participating. First, you must fill out an enrollment form and send it in to your current electric distribution company (EDC). Second, once you are enrolled, you can shop for an electric generation supplier (EGS). You will receive information on how to shop, including a list of licensed electric generation suppliers and a price per kilowatt-hour to use to compare the prices offered by different suppliers. What exactly am I choosing? You can choose the company that supplies your electric generation. There are three parts to electric service: Generation, transmission, and distribution. Generation is the production of electricity. Transmission is the movement of electricity from where it is produced to a local distribution system. Distribution is the delivery of purchased power to the consumer. Is there a deadline for enrolling in the Electric Choice Program? No. Enrollment for the first phase of electric choice will remain open until the participation limit has been reached -- approximately two-thirds of electric customers. (In the case of UGI Electric, I 00 percent of their customers will be able to participate in the first phase of the program.) What if I enroll, but decide not to choose a new supplier? If you do nothing, your current EDC will continue to supply your electricity at Public Utility Commission-regulated rates. If one company generates my electricity and another provides the rest of my electric service, who will I call about outages or repairs? You will still call your local electric distribution company about power outages and repairs. If you have questions about electric generation billing or other issues related to generation, you will call your new supplier. Will I receive two electric bills each month if I choose a new supplier? In most cases, you should be able to receive a single monthly bill from your current electric distribution company. However, some suppliers might want to bill you separately. I receive good, reliable electric service right now; will that change if I choose a new supplier? Absolutely not. You can depend on the same reliable service from your local electric distribution company whether or not you choose a new supplier. If I switch suppliers, when will I start seeing savings on my electric bill? The amount you might save will vary, and when you will see changes in your bill will depend on when you sign up. If sign up with a new supplier by Nov. 1, 1998, the switch to that company will occur in January 1999. If you sign up between Nov. 2 and Dec. 3 1, the switch will occur in February 1999. How much money will I save in the Electric Choice Program? The amount you might save depends on several factors, such as how much you pay now for electric generation; how much electricity you use; and the price offered by your chosen electric generation supplier. Where can I get information on supplier prices? Suppliers can give you that information, and each supplier's price might be different. Once you are enrolled in the Electric Choice Program, you will receive a list of licensed electric generation suppliers for your area, along with their toll-free numbers. More importantly, you will receive a price per kilowatt-hour from your current electric distribution company to use to compare supplier prices. What are renewable resources? How can I purchase energy that is environmentally friendly? Renewable means that the resource is capable of being replaced naturally. Some electric generation suppliers may offer an energy mix that includes the use of renewable resources. If you are interested in purchasing energy that is environmentally Friendly, ask suppliers what percentage of their mix is generated by renewable fuels or technologies. Examples of these include: solar photovoltaic energy, solar thermal energy, wind power, low head hydro power, geothermal energy, landfill and mine based methane gas, energy from waste and sustainable biomass energy. How will I know that a supplier is reliable? Only electric generation suppliers that are licensed by the Public Utility Commission (PUC) can do business in Pennsylvania. What is the 'price to compare'? If you enroll in the Electric Choice Program, this is the kilowatt-hour (kWh) amount you will use to compare the prices offered by different electric generation suppliers and figureout how much you might save. I've heard talk about 'transition charges' and 'stranded costs.' What are these and how do they affect me? Stranded costs are expenses for utility plants and equipment that are not profitable in a competitive electric market. The PUC allows companies to recover some of these costs through a transition charge on every electric customer's bill. Will I need a special meter if I choose a new supplier? In most cases, no. You might, however, choose to have an advanced meter, which can monitor your electric use during specific time periods. If a supplier offers this service, advanced metering allows you to benefit from special time-of-day discounts or other potential ways to save money. What is an aggregator? A buying group that bargains for electricity by negotiating lower prices for customers who have authorized them to act on their behalf.
Helpful Hint for Shopping -- Compare Prices You will receive a letter from your EDC if you are successfully enrolled in the program. This letter will include a kilowatt-hour (kWh) price to compare. Compare this to the kWh prices offered to you by electric generation suppliers. To estimate monthly savings, subtract the supplier's price from the price to compare from your EDC. Then, multiply the difference by the average number of kWh you use in a month. · When comparing prices, it's also important to consider the effect of time-of-day pricing or other incentives, if applicable. · If a supplier offers a discount, be sure to find out what part of your bill that discount applies to (for example, does it apply to your entire bill of just the generation charge?). |
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