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Reading Electricity Rates

Reading Energy Rates

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 Reading, the deregulated market allows business owners to compare energy plans from top energy suppliers and shop for the best available 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 Reading is PPL Electric Utilities. Each utility is responsible for transporting electricity from the generators to residential homes and businesses in Reading.

Energy providers in Reading, 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.

Lindbergh Bridge in Reading, PA

About Reading, PA

Reading is in the southeastern part of Pennsylvania with a population of 88,423.

The city was built in 1743 by Richard and Thomas Penn, the sons of William Penn who established the state of Pennsylvania. The name Reading came from their former home town of Reading, England. The city used as a military base during the French and Indian War.

The Reading Railroad was created in 1883, which is featured in the well-know board game, Monopoly. The city is known for its outlets malls, producing the first one in the country in the 1970’s.

Pennsylvania Business Profile

It is estimated that Pennsylvania is home to 1 million small businesses in a wide variety of industries and categories. Small businesses in Pennsylvania make up 98.2% of the total businesses in the state with the remaining 1.8% being large or enterprise level companies.

As of the latest SUSB census, Pennsylvania small businesses employed over 2 million people in the state representing 47% of the total employees in Pennsylvania.

Key Statistics

  • Firms with fewer than 100 employees have the largest share of small business employment.
  • 927,691 small businesses
  • 2.4 million small business employees

Top Small Business Industries in Pennsylvania

  • Retail Trade
  • Accommodation and Food Service
  • Manufacturing
Power lines in Reading PA

Reading, Pennsylvania 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 Reading 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.
  • Met-Ed: Met-Ed is the primary distribution company in Reading, servicing more than 560,000 customers in southeast Pennsylvania. While all customers can choose their electricity supplier, Met-Ed is the primary distributor for Reading homes and businesses.

Electricity Plans and Rates in Reading, PA

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