Electric Competition in Pennsylvania: Flat Rates Versus Time Varying Rates
October 13, 2014
In 2013, customer preferences shifted towards flat rate retail contracts. The 2013 Pennsylvania data shows a customer’s preference for flat rate over other time-varying rates, including seasonal, other, time of use, hourly/real time and hybrid rate products.
The data for 2013 shows that flat rates (rates that are constant and changes no more frequently than monthly, excluding seasonable rates) had the most customer accounts with 1,065,907 (81%) of 1,319,654. The residential class comprised 933,888 (88%) of flat-rate accounts. The small class had the most non-residential, flat-rate customer accounts with 108,015 (82%) of 132,019.
This shows a shift in consumer preferences from the 2012 Pennsylvania data. The 2012 data showed a marginal preference for flat rates.
The polar vortex impacted the markets in early 2014. It is unclear if the effects of the polar vortex will reinforce consumer preferences for flat rates.
The data and the full Retail Choice Activity Reports, which discusses retail electricity choice activity trends in Pennsylvania, are available at https://www.puc.state.pa.us/utility_industry/electricity/retail_choice_activity_reports.aspx.
This Eckert Seamans Energy and Utilities Blog is intended to keep readers current on matters affecting businesses and is not intended to be legal advice. If you have any questions about the content of this post, please contact Carl Shultz at (717) 255-3742; cshultz@eckertseamans.com.