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Power Play
Stories by Ken Zapinski

Electric Choice deadline coming up

Friday, November 13, 1998

By Ken Zapinski, Post-Gazette Staff Writer

Electric customers wanting to take full advantage of the state's new electric choice program have until Monday to choose a new power supplier.

Those customers will start receiving electricity from their new supplier in January. Those who sign up later will begin their new supply contracts in February or later.

The stakes for missing a month aren't great, however. The typical Duquesne Light customer who chooses the lowest-cost supplier - Allegheny Energy - will save about 13 cents a day, or $4 off what otherwise would be a $76 monthly bill.

Allegheny Energy (888-232-4642), a marketing company affiliated with Allegheny Power utility company, lowered the price it is offering Duquesne Light customers by almost 7 percent last week, making it the lowest-cost supplier in that market.

Allegheny Energy is also the lowest-priced outside supplier in the Pennsylvania Power service territory north of Pittsburgh. A typical Penn Power customer choosing Allegheny Energy will save about $1.50 off a bill that otherwise would be around $70.

The city of Pittsburgh and a Philadelphia-based group, the Energy Cooperative Association of Pennsylvania, are trying to establish community-based negotiating cooperatives to bring even lower priced power to the area, but so far, they have been unsuccessful. But consumers aren't risking anything if they want to start saving now.

Allegheny Energy will guarantee its rate for 12 months, but customers are free to switch to another supplier without penalty, according to the company. A customer can sign up now, then switch if a better price comes along next summer. That would be similar to what some people do with their long-distance telephone service, routinely switching companies whenever they can find a better deal.

In the Allegheny Power utility company service area, the typical customer will not save anything by choosing an outside supplier because Allegheny Power's rates are already so low. And they are about to get lower, thanks to a recent settlement with the Pennsylvania Public Utility Commission.

The state's electric choice program is about more than price, however. Environmentalists are happy because they can purchase electricity that is produced without using coal, nuclear power, or other fuels they deem undesirable. Green Mountain Energy Resources (888-246-6730) is selling three different electricity "blends" that are produced using renewable resources such as wind and natural gas captured from landfills.

And in a quirk, the most expensive electric service for some people can turn out to be the cheapest electric service for others. DTE Edison America (800-800-2334) is offering the lowest price per kilowatt. The catch is, you must be a member of the company's "America's First Energy Club," with dues of up $144 a year. But for some, it can be a good deal.

For instance, Duquesne Light customers paying the lowest membership rate - a yearly payment of $100 for a year while paying monthly bills via the Internet - would have to use 1,250 kilowatt hours per month, or about twice the typical customer, for DTE Edison America to have the lowest overall price. And if the customers also buy their natural gas from the company, the usage point drops even further.

In addition, Energy Club members also receive special discounts from businesses affiliated with the program, such as a 10 percent discount at Papa J's restaurants and a 10 percent discount at Shackleford's & Maxwell's Flowers.

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