How you can save money on your next electric bill as rates rise

PHILADELPHIA (WPVI) -- Major electricity rate increases are now in effect and for some, that could mean sticker shock when you open up your next bill.

Distributors blame decreased supply and an increased demand, due in large part to data centers and AI requiring so much power.

The rate increase happened June 1st.

In Pennsylvania, PECO rates are going up more than 12%. PPL Electric rates are increasing 16%. And in South Jersey, Atlantic City Electric and PSE&G rates will go up 17%.

"So there's three major things that you can do. First is to shop around," said Dan McCunney with NRG Energy.

You can shop your rate and choose your own electricity supplier in Pennsylvania, New Jersey, and Delaware.

Pennsylvania made it easy with PAPowerSwitch.com

But there are two important things to consider:

"First off, know whether you want a fixed rate or a variable rate," said Stephen DeFrank who is Chair with the Pennsylvania Public Utilities Commission.

If you choose a variable rate, make sure you mark on your calendar when the introductory rate expires and a higher rate goes into effect.

If your introductory rate is just three months, start looking for a new supplier in month two.

"The distribution companies, so that's the PECOs, PPLs...they have three days to switch you, but they have their clock starts whenever they get that notice back from the supplier," said DeFrank.

And here's the second thing to consider.

"The other thing to look for is whether there are fees," DeFrank added. "If there's a monthly fee or an enrollment fee or a cancellation fee."

You can filter your search to include only suppliers that don't charge such fees. It's a good idea since they can make a big difference.

For instance, here's PECO's price to compare for zip code 19146: $0.10400 per kilowatt hour and the estimated monthly bill is $72.80.

The price to compare from SFE Energy Pennsylvania Inc is less, but due to its monthly fee of $39.24, your bill would actually go up.

On the other hand, look at the price to compare for American Power & Gas of Pennsylvania which is $0.07690 per kilowatt. That will lower your estimated monthly bill to $53.83 - nearly $19 dollars less. There are no fees and since it's a three-month fixed rate, you can at least save all summer long.

You might also look for companies that offer clean energy or perks, like ways to save on travel.

"So you sign up for an electric plan that gets you airline miles, and for every kilowatt hour that you use, you're earning miles," said McCunney.