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Old 01-27-2011, 10:36 AM   #7
Thaddy
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Member#: 128109
Join Date: Oct 2006
Chapter/Region: MAIC
Location: Pittsburgh
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Quote:
Originally Posted by cwb124 View Post
I keep getting letters about an alternative energy company. PECO still handles pretty much every aspect of my service and bill, but I pay less? Seems like there's a catch that I don't know about.
Since PECO is your utility, they will still be responsible for the transmission and line maintenance. Your provider, let's use ConEd as an example, is entered into long and short term contracts to actually serve the demand for their retail and commercial customers in these newly deregulated zones. Instead of PECO sourcing the MW's, ConEd is. But they're still flowing that electricity over PECO's lines because they're the regional transmission operator.

The price at which power is sold is heavily dependant on the price of natural gas. Right now there is a large available supply and recent drops in demand (people are using less energy) has resulted in power prices that are very low by historical standards. Low prices = competitive markets = happy consumers.

<- Works in the deregulated energy industry and has spent plenty of time at PECO and Exelon.
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Last edited by Thaddy; 01-27-2011 at 10:43 AM.
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