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Philadelphia Electricity Rates

Philadelphia Electric Rates

Lowest electric rates in Philadelphia today:

Philadelphia Energy Market Data

Last updated June 2020

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

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Philadelphia Commercial Electricity Rates and Plans

How to find the best electric rate for your business

For businesses of all sizes – from small businesses to enterprise-level, the deregulated market has enabled competition. Today, every business has the ability to compare energy plans from top energy suppliers and shop for the best rate available.

In most cases, businesses will be able to effectively manage and/or reduce their monthly electricity costs by switching energy plans and providers every year.

Philadelpha, PA Skyline

Philadelphia Energy Providers and Utilities

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 Philadelphia, the deregulated market allows business owners to compare energy plans from top energy suppliers and shop for the best 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 Philadelphia is Penn Power, Penelec, Duquesne Light Company, PPL Electric Utilities, West Penn Power, and Met-Ed. Each utility is responsible for transporting electricity from the generators to residential homes and businesses in Philadelphia.

Energy providers in Philadelphia, 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.

The famous Melrose Diner in Philadelphia

About Philadelphia

Philadelphia, also known as Philly, is the largest city in Pennsylvania and the 6th largest city in the U.S, with a growing population of 1,580,863.

Founded in 1682, Philadelphia played a major role in the founding of the country as it served as the meeting place for the Second Continental Congress and signing of both the Declaration of Independence and the U.S. Constitution and then served as the nation’s first capital.

Today, Philadelphia is home to the 6th largest workforce in the U.S including highly skilled professionals in leading industries, including energy, manufacturing, life sciences, technology and financial services. With a strategic east coast location between New York City and Washington, DC, the Philadelphia metro area serves as the headquarters for 18 Fortune 500 companies.

Also known as the City of Brotherly Love, Philadelphia was named the first World Heritage City in the U.S. and consistently ranks as one of the top places to visit in the U.S.

Power lines outside Philadelphia

Philadelphia, Pennsylvania Energy Profile

Electricity for Philadelphia 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.
  • PECO: PECO is the distribution company in Philadelphia. While all customers can choose their electricity supplier, PECO is the only distributor for Philadelphia homes and businesses.
  • City of Philadelphia: The City has a strong working relationship with PECO and regularly files comments on relevant proceedings with the PUC. The Office of Sustainability is reviewing opportunities to be more involved with PJM.

Electricity Rates in Philadelphia

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