Reading Electricity Rates

Contents

1 Reading Electricity Rates
2 Reading Utility Companies
3 Reading Power Outages
4 Reading Price to Compare
5 Energy Deregulation in Reading
6 Choosing an Energy Plan
7 Can I Select a 100% Renewable Energy Plan?
8 Is There an Early Cancellation Fee?
9 Should I Choose a Fixed or Variable Rate?
10 What Happens at the End of my Term?
11 View by City
12 Clean Energy
13 Electricity Rates

Residents living in Reading, PA have the option to switch energy suppliers and save money on the electric bills. Reading electricity rates have seen a downward trend since Pennsylvania deregulated the electricity markets back in 1996. Before energy deregulation utility companies had a monopoly over the generation, transmission, and delivery of power. Customers had no choice but to pay the price the utility company was charging. Energy deregulation has allowed other energy suppliers to offer Reading residents an alternative to the utility company. It is not uncommon for residents to save 10-30% after switching to an alternate energy provider.

The city of Reading has a population of just over 85,000 and is located 60 miles northwest of Philadelphia. The city is subject to cold winters and receives just under 20 inches of snowfall annually. The cold winters in Pennsylvania can push up the demand for energy causing prices to rise to those on variable rates.

Reading Utility Companies

If you’re moving to Reading, then you will need to set up your electric account with Met-Ed. Met-Ed is the primary utility company in Reading that is responsible for maintaining and managing the power lines that deliver the electricity to homes and businesses in its service area. The delivery charge represents the regulated section of the electric bill and is overseen by the Pennsylvania Public Utility Commission (PAPUC). A customer can’t switch to another utility company for this service.

Reading Power Outages

If you experience a power outage, then you will need to contact the utility company. Met-Ed is responsible for fixing all power outages within its service area.

Met-Ed Customer Contact Number: 1-888-544-4877

Reading Price to Compare

Along with delivering the electricity to its customers, Met-Ed is also responsible for providing a default rate to those that decide not to switch to a competing energy supplier. The default rate is commonly referred to as the price to compare. This rate is not considered to be very competitive since the utility company does not have a financial incentive to keep customers on the default rate. Residents can use this rate while shopping for a new energy plan. If an energy supplier is offering a rate lower than the price to compare, then the customer will be saving money by switching.

Energy Deregulation in Reading

Much like the rest of Pennsylvania, the city of Reading has benefited from the state deregulating the electricity market. Legislation introduced in 1996, known as the Electricity Generation Choice and Competition Act, unbundled the responsibilities of the utility companies. This has allowed electric suppliers operating in Pennsylvania to offer supply rates as an alternative to the utility company’s default rate. The supply rate represents the deregulated section of the electric bill and is the cost of generating the power the customer is estimated to use during the term of the agreement. Lowering the supply rate on the electric bill can add up to huge savings!

Electricity suppliers that provide supply services in the state must be licensed by the Pennsylvania Public Utility Commission (PAPUC). A list of qualified energy suppliers can be found on PAPUC’s website.

Choosing an Energy Plan

Energy choice has provided Reading residents different options when choosing the right energy plan. The energy plan that is right for you may not be the same one that is right for your neighbor. Whether you’re looking for price security or want to cut down on your carbon footprint, there will be an electric supplier that can meet your needs. Below are a few questions to keep in mind while shopping for a new energy plan.

Can I Select a 100% Renewable Energy Plan?

Yes, more energy suppliers are offering plans that include 100% renewable energy. Renewable energy is generated from renewable energy sources such as wind, power, and biofuels. If you select this plan then the estimated number of kilowatt-hours you are estimated to use will be generated from renewable energy sources and uploaded to the power grid.

Is There an Early Cancellation Fee?

Most energy plans will include an early cancellation fee. Early cancellation fees will be listed in the terms and conditions of the energy plan. Early cancellation fees can come in the form of a flat fee or a dollar amount that is multiplied by how many months are left in the agreement after the customer switches. These fees can cost up to $300 so be sure you are aware of any early cancellation fees before switching to a new provider!

Should I Choose a Fixed or Variable Rate?

Choosing between a fixed or variable rate plan has a lot to do with a customer’s risk tolerance. If you’re looking for price security, then selecting a fixed rate product will be the best choice. Fixed rates will stay the same during the duration of the agreement. If the market increases, then you will be protected. However, if the market drops then you may be stuck paying a higher rate.

Variable rates can change monthly. Most variable rates change at the sole discretion of the energy supplier. It is not uncommon to have a low introductory variable rate for the first few months only to have the rate sharply increase down the road. Most variable-rate plans do not include an early cancellation fee allowing the customer to change energy providers without having to pay a penalty.

What Happens at the End of my Term?

Most energy suppliers will switch their customers to a monthly variable rate once the initial term expires. Once this happens don’t be surprised to have the electric bill double or even triple on you in a single billing period. We recommend locking in a new energy plan a month before the expiration of your current plan.