If you’re a resident or business in southeastern Pennsylvania, you’re likely familiar with PECO Energy. But did you know that simply staying on PECO’s default plan may not always be the most cost-effective choice? In this blog, we’ll walk you through how to compare PECO rates and alternative suppliers, what “price to compare” means, and how you can use this information to make smarter energy decisions.
What Is PECO Energy And How Does The Market Work?
PECO Energy is the utility responsible for delivering electricity (and in many cases natural gas) to homes and businesses across Philadelphia, Bucks, Chester and Delaware counties in Pennsylvania.
However and this is crucial, the generation and supply of your electricity can often be chosen by you, through licensed competitive suppliers, thanks to Pennsylvania’s deregulated energy market.
Here’s the breakdown:
- PECO delivers the power, maintains the wires and infrastructure, handles outages and your billing (if you stay on default).
- You can instead choose a third-party supplier to provide the generation portion of your electricity. PECO still handles distribution.
- The benchmark: PECO publishes a “Price to Compare”. This is the default generation supply rate you’ll pay if you don’t choose a different plan.
Why Compare PECO Rates And Supplier Plans?
There are several reasons why comparing is worth your while:
- Potential Savings – If a supplier can offer you a fixed rate lower than PECO’s PTC, you could save money. For example, as of June 1 2025 through Nov 30 2025, PECO’s residential PTC is about 10.40 ¢/kWh. Some suppliers have plans as low as 9.39 ¢/kWh for a 12-month fixed term.
- Price Stability & Term Certain – Many suppliers offer fixed-rate plans, which mean you won’t see your rate suddenly spike mid-term. Staying on PECO’s default could expose you to quarterly adjustments.
- Choice Of Green/Renewable Options – Some alternative suppliers offer green energy plans, which you may not get through the default.
- Control And Transparency – When you compare and choose, you’re more informed about what you pay and under what conditions (e.g., early termination fees, variable vs fixed rate).
How To Compare PECO Rates And Suppliers – Step By Step
Here’s a simplified process you can follow:
- Find Your ZIP Code And Usage – Knowing your area and how much electricity you use is key, since rates vary.
- Check PECO’s Current Price To Compare – For example, the PTC for June 1, 2025 through Nov 30, 2025 is about 10.40 ¢/kWh for residential.
- Look Up Alternative Suppliers – Use marketplaces or comparison tools, filter by term (e.g., 12 months), fixed rate vs variable, renewable options, supplier reputation. For example, one list shows offers like: Clearview Energy – 9 months at ~9.7 ¢/kWh; Energy Harbour – 12 months at ~11.9 ¢/kWh.
- Compare Risk vs Reward – A supplier’s rate might look lower now, but ask: Is it fixed or variable? Are there early termination fees? What happens when the term ends? Some users have reported being locked into higher rates after promotional periods.
- Check Contract Terms Carefully – Read the fine print. If the rate is fixed for 12 months, what happens afterwards? Will the rate revert to something much higher? Is the supplier reliable?
- Decide And Enroll – If you find a plan that beats the PTC and meets your criteria, you can enroll online or by phone. The switch will be handled by the supplier; your delivery remains with PECO.
- Monitor Your Bill – After switching, watch your monthly bill to ensure the rate you signed up for is being applied. Mark your calendar for the contract end so you can shop again if needed.
Things To Watch Out For & Common Pitfalls
- Variable Rate Plans – While they may start low, they can rise without much notice. Many consumers advise avoiding variable rates unless you truly understand the risk.
- Door-To-Door Solicitations Or Unsolicited Calls – Some users report unwanted contact from agents claiming to represent PECO or offering “too good to be true” deals. Always verify supplier credentials.
- Auto-Renewal Traps – Contracts may automatically roll over at higher rates unless you act. Set reminders ahead of renewal.
- Comparing Apples-To-Apples – When you see a low rate from a supplier, ensure that it includes all charges and is comparable to PECO’s PTC for your usage and term.
- Distribution Service Stays With PECO – Even if you choose a supplier, PECO remains your distributor. So, if there’s an outage or writing issue, you’ll still call PECO. Your supplier handles the generation side.
As its core, comparing PECO Energy rates and suppliers gives you an opportunity to take control of one of your fixed expenses, electricity. If you’ve been simply defaulting with PECO, you may be preparing more than necessary or missing out on better terms. But at the same time, the “cheapest” option isn’t always the best if it comes with unpredictable terms or hidden costs.
