Winter price spikes drive 50K Pa. electric customers back to local suppliers

Katie Colaneri

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Katie Colaneri is a reporter for StateImpact Pennsylvania and WHYY in Philadelphia covering energy and the environment. Before joining StateImpact, Katie worked as an investigative and enterprise reporter at WBGO in Newark, New Jersey. She covered some of New Jersey's biggest stories including the devastation and aftermath of Hurricane Sandy in 2012 and Tropical Storm Irene in 2011, as well as the day-to-day triumphs and struggles to revitalize state's largest city. A native of New Jersey with roots in South Central Pennsylvania, Katie holds a bachelor's degree from Wellesley College.

April 24, 2014 | 5:09 PM

Electricity customers in Pennsylvania on variable rate plans suffered from sticker shock this winter when temperatures plunged and prices spiked. That’s driven at least 50,000 customers back to their local utilities since early March, according to the state Public Utility Commission.
Rather than shopping around for electric suppliers, those customers are letting geography choose for them, which can be a more stable option.
However, PUC spokeswoman Jennifer Kocher said that could be more expensive for them in the long run because local or “default” utilities only update their prices every quarter, so the commission is trying to entice consumers back into the competitive marketplace.
“We’re waiting for the final okay on some rules that will say that disclosure statements all have to look the same,” Kocher said. “It has to be in plain English and it has to spell out exactly what will happen to the rates.”

Kocher said the new disclosure statements could take effect in June.
The PUC is also pushing for new rules that would help customers switch their rate plans faster. Some customers have had to wait through a whole billing cycle and pay higher rates while waiting for the switch to a new plan to take effect.
But, if approved by the Independent Regulatory Review Commission, utilities will need at least six months to make that change, so to avoid giving customers another round of sticker shock this summer, the PUC is also updating its online marketplace.
More than 2.1 million customers are still with competitive suppliers, either through variable rate plans or temporary fixed plans.
After receiving thousands of complaints from consumers, the PUC and State Attorney General Kathleen Kane are investigating the price spikes.