Over the past 30 years, costs for everyday essentials have climbed — milk is up 34%, eggs by 65%. But what about the electricity powering your fridge?
Surprisingly, Pennsylvania shoppers could be paying about the same for electricity in 2024 as they did in 1996 — if they take advantage of the state’s competitive energy market.
A new report released by former Pennsylvania Public Utilities Commissioner John Hanger — an architect of the state’s transition to competitive energy markets — revealed that the average 2024 residential retail supply price of electricity in Pennsylvania was just one-thousandth of a cent more per kWh than it was in 1996 –– virtually identical to the average utility rate 30 years ago.
Hanger’s data analysis is a continuation of research he first started in 2016 as a way to evaluate consumer benefits in a competitive market years after breaking up utility monopolies.
Sharing the news of his latest white paper, Hanger said, “It’s clear that competition in an energy market is working. The monopoly utility structure made energy less affordable and customers still had roaming blackouts in the early 1990s. By introducing competition to the market, power generation has increased and customers are able to hold utility companies accountable because they can shop for their electricity supplier.”
Hanger’s analysis reveals that customers in three utility service territories –– who shopped the lowest fixed-price offers from a retail energy supplier –– likely paid LESS in 2024 than when they were with their vertically integrated utility company in 1996.
What does that mean in dollars and cents?
An electricity customer in the PECO service territory (southeast Pennsylvania) who shopped for the lowest retail energy supply offer paid nearly $15 less a month for 500 kWh of electricity than what they were paying with their utility company in 1996.
“Competition puts power where it belongs — in the hands of consumers,” said Chris Ercoli, president and CEO of the Retail Energy Advancement League. “John Hanger’s report makes it clear: retail competition has allowed active shoppers to win on price and choice –– and even if you don’t switch, it has kept everyone’s rate in check.”
Hanger found that when inflation adjustments were added to the 1996 rates, PECO’s captive ratepayers would have been paying $42 more a month in 2024 for PECO’s electric supply. But with the downward price pressure of retail supply competitive offers, PECO’s rate was contained to only $4 more a month in 2024 than what it was in 1996 –– demonstrating that competition was benefiting all residential energy users.
Whether you’re actively shopping for electricity or sticking with your utility, Pennsylvania’s competitive energy market is already working in your favor. Customers have power with electricity competition because all suppliers have to compete for your business, helping to keep bills in check –– for everyone. And for those who do take the time to shop, the savings can go even further.
To read more about John Hanger’s white paper, click here.
