PA PowerSwitch Turning Turns to Failure

[ArcticSplash]

Only 18% of PECO customers so far have even bothered to switch.

The reasons are pretty obvious. The discounts aren't worth the trouble to waste one's time over, the marketing hype is ridiculous, and we all suffered the pain of having our rates jacked up just prior to dereg implementation just so these bill-stuffers could have some breathing room to act like a gas station---quick to raise the rate, slow to lower it.


Electricity deregulation sucks.

PUC is putting Pa.'s default system in play | Philadelphia Inquirer | 05/08/2011

[raider.adam]

As I understand it, the rates went up because they were held artificially low by Harrisburg for several years.

[Jayfar]

I saw a previous article indicating a much larger percentage of industrial customers switched.

EDIT:

Yes, most of the large industrial customers switched.

Peco: 16% of customers have switched suppliers - Philly.com

About 16 percent of Peco's 1.6 million customers, including most of its large industrial customers, have switched to alternative suppliers, according to Cathy Engel Menendez, spokeswoman for the Philadelphia utility.

[ArcticSplash]

As I understand it, the rates went up because they were held artificially low by Harrisburg for several years.

Cite please?

The PUC never pushed rates lower than the cost of production and distribution, otherwise the utilities would have gone cash poor and bankrupt. Uranium and natgas prices have been at record lows for a while now, so fuel input costs were never putting pressure on the utilities before or after dereg.

[ArcticSplash]

I saw a previous article indicating a much larger percentage of industrial and customers switched.

EDIT:

Yes, most of the large industrial customers switched.

Peco: 16% of customers have switched suppliers - Philly.com

Comm and Ind customers negotiate their own electricity contracts with utilities, including regulated markets. It's always been like this. The switch puts the one-sided bidding for very large consumers at their advantage.

However for individual residential customers, there still is no collusion power [aka a "buyers strike"] that forces rates low.

The massive rate hike just prior to dereg that impacted residential ratepayers proves my point. Where is the monetary proof that dereg is/was/going-to-be better? The wallet doesn't lie.

[Malloy]

IMO 18% switch in a few months is pretty impressive (especially when you look at the dollars) I think it will continue to grow. I'm not switching, but I wouldn't call that a failure.

[Bob_Head]

the marketing hype is ridiculous

And the pyramid-scheme style way the marketing was conducted didn't help. Very few of the people selling the new options could answer many of my most basic questions. The knew price point, and nothing else. Even on price questions they were a bit weak. They really couldn't set themselves apart from all the alarm, home improvement and magazine salespeople who plague my stoop. It didn't seem like a scam, but it wasn't enough to get me to switch, either.

[Malloy]

Agreed 10000%. VERY weak effort.

And the pyramid-scheme style way the marketing was conducted didn't help. Very few of the people selling the new options couldn't answer many of my most basic questions. The knew price point, and nothing else. Even on price questions they were a bit weak. They really couldn't set themselves apart from all the alarm, home improvement and magazine salespeople who plague my stoop. It didn't seem like a scam, but it wasn't enough to get me to switch, either.

[longtimephilly]

I agree with Bob. I didn't trust any of the people ringing my doorbell Saturday morning with little information and unable to answer questions.

[raider.adam]

Cite please?

The PUC never pushed rates lower than the cost of production and distribution, otherwise the utilities would have gone cash poor and bankrupt. Uranium and natgas prices have been at record lows for a while now, so fuel input costs were never putting pressure on the utilities before or after dereg.

Electricity deregulation is a win for Pennsylvania | PennLive.com

The utilities were rate capped for over 10 years. The rates went up because the caps came off, as was legislated to happen back in 1996.

[ArcticSplash]

Electricity deregulation is a win for Pennsylvania | PennLive.com

The utilities were rate capped for over 10 years. The rates went up because the caps came off, as was legislated to happen back in 1996.

And yet natgas, the primary fuel for electricity generation, has hit unheard-of historic lows [they were higher 10 years ago].