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History of Deregulation in PA

The opportunity to switch PA power comes from the deregulation of PA's electric companies. Now, instead of paying for power from an electrical supplier that has been assigned to them, Pennsylvanians can use Shop My Power to learn about the other electric companies around and switch their power supplier to the one they feel is the best option for their lifestyle.

In the Beginning

Until 1997, the Pennsylvania Public Utility Commission firmly regulated the electricity market. The PA power switch movement began when a house bill was passed to eliminate the monopolies controlled by the main electric companies. This sparked competition among new and existing companies, which was meant to lead to lower prices and more satisfied customers.

At first, however, the exciting PA power switch wasn't as easy as it is today. The deregulation bill was altered to include rate caps (or price ceilings) for electric providers in order to keep the price competition normal. Because of this, providers were allowed to bill customers for a Competitive Transition Charge to cover stranded costs. With rate caps in place and CTCs in effect, it was hard for deregulation to be successful.

Deregulation Today

Today, however, deregulation has been beneficial for residents looking to switch their PA power. Because rate caps expired at the end of 2010, the competition between electric providers is now in full swing. Pennsylvanians can shop around for the best rates, contracts, and features of many different providers and choose which one fits their lifestyle and budget the best.

Customers can now have more control over their electric bills and can switch easily. When customers switch their electric provider, they still keep their distributor, which means their flow of electricity won't be interrupted. And now, with the increase of environmentally-friendly energy, customers can shop for "green" power if they're minding their carbon footprint.