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Pilot
Retail Choice Programs
The
Pennsylvania Electric Generation Choice & Competition
Act of 1996 called for Pennsylvania utilities to implement
pilot retail electricity choice programs. These programs
are meant to educate utilities, regulators, consumers,
and others about how a competitive electricity market
will work in the state.
The pilot programs began in November 1997, and pilot
program participants will be rolled into the first block
of consumers to be given choice on January 1, 1999.
About 250,000 Pennsylvania electricity consumers are
taking part in the pilot programs, making the retail
choice program the most active of any in the U.S. so
far. Many participants are experiencing savings of about
10 percent.
Details
Here
is how the retail access pilot programs that began
on November 1, 1997 work:
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Under
the pilot, 5 percent of the load of each utilities
customers representing each rate class-or about
230,000 participants total-are allowed to select
competitive electricity suppliers.
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An
open enrollment period was held to sign up pilot
participants. Since the number of willing participants
exceeded the number needed for the program, lotteries
were held to randomly select those customers able
to participate.
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Residential
and commercial customers who participate in the
pilots receive a 13 percent customer participation
credit on their utility bills. Industrial customers
receive a 10 percent credit.
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In
addition to the participation credit, pilot participants
receive a credit from their utility for each kilowatt-hour
of electricity they purchase on the competitive
market. The residential and commercial customer
credit is 3 cents per kWh, and the industrial customer
credit is either 2.4 or 2.7 cents per kWh, depending
on the utility.
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Pilot
participants are rolled into the first block of
customers to be phased in to competition by January
1999.
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Customers'
local distribution companies will continue to deliver
power to customers under the pilot, much like they
will in the fully competitive market. A separate
charge for the power used will be included on the
bill.
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Customers
are allowed to switch suppliers no more than once
a month. They can also return to their incumbent
utility as their supplier, but cannot re-enter the
pilot once they have done so.
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Consumer's
Guide
Frequently
Asked Questions
What's
a Kilowatt? and Other Definitions
Questions
for Suppliers
Implementation of PA's Electric Competition
Law
Pilot Retail Choice Programs
Electrotechnologies
for Home & Business
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