
 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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