Electric Competition in Pennsylvania: Contract Duration
October 13, 2014
In Pennsylvania, customer preferences have shifted towards longer-term fixed priced retail contracts. The 2013 Pennsylvania data shows a customer’s preference for two year fixed longer-term contracts over both one-year fixed term contracts and three-year fixed term contracts.
The data for 2013 shows that two-year, fixed-term contracts had the most customer accounts with 419,819 (43%) of 974,503. The residential class comprised most of the two-year, fixed-term accounts with 362,705 (86%) of 419,819. The small class had the most nonresidential, two-year, fixed-term customer accounts with 44,466 (78%) of 57,114.
This is a dramatic shift from the 2012 Pennsylvania data. In 2012, across all customer classes, more than 84% of all customer accounts had one-year fixed term contracts. And, within each customer class, more than half of the accounts had one-year fixed term contracts.
The polar vortex impacted the markets in early 2014. It is unclear if the effects of the polar vortex will reinforce the preference for two-year fixed term contracts or if preferences will shift back to one-year fixed term contracts.
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.