Lancaster is one of many cities in Pennsylvania that is located in a deregulated electricity market. Lancaster electricity rates have seen a downward trend since the state deregulated the electricity market back in 1996. Before energy deregulation, the utility companies had a monopoly over the generation, transmission, and delivery of power in their respective service areas. If a customer was unhappy with the rate, there was nothing they can do to change it. With the introduction of energy choice, Lancaster residents are now able to shop for an alternate electric supplier and save 10-30% on their electric bills.

The city of Lancaster has a population of just under 60,000. However, Lancaster’s metropolitan area is the second-largest in the state with a population of just over 500,000. The city is located 80 miles west of Philadelphia and sits near the Susquehanna River.

Lancaster Utility Companies

If you’re moving to Lancaster then you will need to set up the electricity account with Pennsylvania Power and Light (PPL). PPL is the utility company in the city that is responsible for maintaining and managing the lines and wires that deliver electricity to customers within its service area. This service represents the delivery charge and is the regulated section of the electric bill. A resident living in the PPL service area will not be able to switch to another utility company for delivery services.

Lancaster Power Outages

If you change energy suppliers and experience a power outage, then you will need to contact the local utility company. PPL is responsible for fixing all power outages within its service area. Thanks to advancements in technology, potential power outages can be detected and even diverted before they can occur.

  • Pennsylvania Power and Light (PPL) Customer Contact Number: 1-800-342-5775
Power outage

Lancaster Price to Compare

Along with delivering power to its customers, the utility company is responsible for providing a default rate for supply services if the customer decides not to switch to another electric supplier. The default rate changes twice per year. This rate is often referred to as the price to compare. Residents shopping for an electric supplier can use the price to compare while shopping for a new energy plan. If a provider is offering a supply rate that is lower than the price to compare, then the customer will be saving money by switching to the new provider.

Lancaster Renewable Energy

Pennsylvania’s Alternative Portfolio Standard (AEPS) requires a percentage of electricity sold in the state must be generated from renewable energy sources. This regulation has artificially created a market to incentivize energy companies to invest in facilities that generate power from sources such as wind, solar, and biofuels. Thanks to the rivers that run through Pennsylvania, hydropower remains the largest contributor to power generation from clean renewable energy sources.  According to the U.S. Energy Information Administration, in 2019 hydropower provided about two-fifths of the state’s renewable electricity.

With greater investments going to renewable energy sources, more energy suppliers are now offering customers 100% renewable energy plans. 100% renewable energy plans generate the number of kilowatt-hours the customer is estimated to use during the term of the agreement from renewable energy sources. These plans often come with a high premium and are not as competitive as conventional methods of power generation such as oil and coal.

Lancaster Energy Suppliers

Thanks to energy choice, the number of energy suppliers providing services in the state of Pennsylvania has grown. This is good news for Lancaster residents that are looking to save money on their electric bills. Whether you’re shopping for the lowest supply rate on the market or looking to lower your carbon footprint, there will be an energy supplier that is right for you.

Energy suppliers that operate in the state are required to be licensed by the Pennsylvania Public Utility Commission (PAPUC). A list of licensed energy suppliers can be found on PAPUC’s website. No two energy suppliers are alike. Below are a few licensed energy suppliers that have built a reputation on competitive rates and quality service.

Direct Energy

Direct Energy

Direct Energy is one of the largest retail energy providers in North America. The company has regional offices across the United States with its corporate headquarters located in Houston, Texas. Direct Energy provides both electricity and natural gas services to residential and business customers. In 2020, the company was acquired by NRG Energy.

Starion Energy

Starion Energy

Starion Energy was founded in Connecticut in 2009. The company has expanded since its founding and now provides energy services to more than 10 states including Pennsylvania. Starion Energy provides both conventional electricity rates along with 100% renewable energy rates at competitive prices.

tomorrow energy

Tomorrow Energy

Tomorrow Energy is no stranger when it comes to 100% renewable energy plans. The company offers competitive electricity rates to customers that are looking to go green. If you’re considering getting off conventional plans that generate electricity from coal and oil, then Tomorrow Energy just might be the right company for you.

Frequently Asked Questions

What is my Current Supply Rate?

The current supply rate will be listed under the supply section of the electric bill. If you are still receiving generation services from the utility company, then you will be paying the default rate, commonly referred to as the price to compare.

How do I Determine my Energy Savings?

To determine the amount of savings by switching to an alternate electric supplier, take the difference between the price to compare and the supply rate being offered, then divide it by the price to compare. For example, if the price to compare is 6.5¢ and an energy supplier is offering 5.8¢, then the customer will be saving 10.8% by switching ((6.5¢ – 5.8¢)/(6.5¢)).

Will I Receive Two Separate Electric Bills?

Most deregulated electricity markets operate under single billing. This means when you switch energy suppliers, you will still receive one electric bill from the utility company that will incorporate both the delivery and supply charges.

Is There an Early Cancellation Fee?

Most energy plans do come with an early cancellation fee. The early cancellation fee can be found in the terms and conditions of the energy plan. Early cancellation fees can come in the form of a flat rate or a fixed fee multiplied by how many months are left in the contract. Early cancellation fees can cost up to $300 so be sure to read the terms and conditions before changing energy suppliers!

What Happens at the End of my Term?

If you take no action at the expiration of your energy plan, then most energy suppliers will put their customers on a monthly variable rate. Once this happens don’t be surprised to have the rate double or even triple in a single billing period. We recommend shopping for a new energy plan a month before the initial plan expires.

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