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Allentown Electricity Rates

Allentown Electric Rates

Lowest electric rates in Allentown today:

Allentown Energy Market Data

Last updated June 2020

  •  The average Allentown commercial electricity rate is 8.62 ¢/kWh (19% lower than the national average). 
  • The average Allentown residential electricity rate is 13.75 ¢/kWh (5% higher than the national average).

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Allentown Electric Companies

Since Pennsylvania electric deregulation began in 1996, businesses have the power to choose their specific electricity provider or to continue to purchase from their utility company. For businesses of all sizes in Allentown, the deregulated market allows business owners to compare energy plans from top energy suppliers and shop for the best electricity rate.

Energy Deregulation in Pennsylvania

In 1994 the Public Utilities Commission began investigating the energy market and published their findings in "The Report and Recommendation on Electric Competition". Their research convinced the state assembly to pass the Electricity Generation Customer Choice and Competition Act in 1996. Over the next 15 years, Pennsylvania removed market rate caps by region gradually forming a free market.

What is the difference between a Utility and an Energy Provider?

Utilities are the entities in charge of the operation and maintenance of the energy infrastructure, like wires and towers. The local utility in Allentown is PPL Electric Utilities. Each utility is responsible for transporting electricity from the generators to residential homes and businesses in Allentown.

Energy providers in Allentown, like Direct Energy, Entrust, and Public Power, are the competitive energy retailers. Each energy provider buys energy from the wholesale market (the generators) and then re-sells it to consumers (homeowners, renters, and businesses).

In most cases, the consumer (the homeowner, renter, or business) signs a contract with an energy provider for a specific energy plan. The basic energy plan details the rate class, the energy rate per kWh, the contract term length (6, 12, 24, 36 months), and other contract terms like the cancellation fee policy.

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About Allentown, PA

Allentown is the 3rd largest city in Pennsylvania and the 231st largest city in the U.S, with a growing population of 121,283.

Founded in 1762 by William Allen, the city was named after him in 1838. Traditionally recognized as an industrial city with it’s economy dependent on iron and mining, it has since expanded to a wide range of products and services, including publishing, food processing, chemicals, electrical and medical equipment, and furniture.

Allentown is located just 35 miles northwest of Philadelphia, offering the comfort of a small city with big city attractions not too far away.

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Allentown, PA Energy Profile

Pennsylvania is the 3rd highest electricity-generating state in the nation, behind only Texas and Florida. Commercial energy consumption makes up 17.1% of all energy consumption in the state.

Electricity for Allentown business and residential users is generated across the regional electricity grid, and several entities are collectively responsible for providing electricity:

  • PJM Interconnection: PJM operates the wholesale electricity marketplace and ensures the reliability of the electricity grid and conducts long-term planning for the future of electricity generation and transmission.
  • Pennsylvania Public Utilities Commission (PUC): Electricity is regulated at the state level by the PA PUC. The PUC sets rates (which influence how much electricity costs) and manages programs to improve energy efficiency and promote renewable electricity.
  • PPL: PPL is the distribution company in Allentown. While all customers can choose their electricity supplier, PPL is the only distributor for Allentown homes and businesses.

Electricity Plans and Rates in Allentown

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