PA Price to Compare Explained

What "Price to Compare" means

The Price to Compare (PTC) is the per-kilowatt-hour rate that your Pennsylvania utility charges customers who haven't chosen a competitive electricity supplier. It represents the supply (or generation) portion of your bill — the cost of the electricity itself, separate from the cost of delivering it to your home.

Your electricity bill has two main components:

1. Supply (generation): What you pay for the electricity itself. This is what the PTC covers, and this is what competitive suppliers can beat.
2. Delivery (distribution): What your utility charges to transmit electricity through poles, wires, and transformers to your home. This stays the same regardless of your supplier.

When Pennsylvania deregulated its electricity market in 1996, it separated these two functions. Your utility — PECO, PPL, Duquesne Light, or one of the FirstEnergy companies — continues to handle delivery. But you can choose who generates the electricity you use. The PTC is the default generation rate for customers who don't make that choice.

How the PTC is set

Pennsylvania utilities don't set the PTC arbitrarily. It's the result of a regulated procurement process overseen by the PA Public Utility Commission.

The procurement process

Each utility runs periodic auctions to secure electricity supply for customers on default service. These auctions occur at different times for different utilities, with contracts of varying lengths. The utility buys electricity at wholesale prices and passes those costs directly to customers — no markup, no profit on the supply side.

What's included in the PTC

• Generation costs: The wholesale price of electricity from power plants.
• Transmission costs: Moving power across the high-voltage grid to your local distribution system.
• Alternative Energy Portfolio Standards: Pennsylvania requires utilities to procure a percentage of power from renewable and alternative sources.
• Gross receipts tax: A state tax embedded in the supply rate.

When the PTC changes

Pennsylvania utilities update the PTC quarterly, typically on:

• June 1
• September 1
• December 1
• March 1

Exact dates vary by utility. The PA PUC publishes upcoming rates approximately two weeks before they take effect.

Current PTC rates by PA utility

Each Pennsylvania utility has its own PTC. Here are the major utilities and their approximate current residential rates (as of mid-2026):

Note: Rates shown are approximate and subject to quarterly changes. Check PA Power Switch or your utility's website for current rates. For utility-specific details, see our PTC pages for PECO, PPL, Duquesne Light, Met-Ed, Penelec, Penn Power, and West Penn Power.

Why the PTC changes

The PTC isn't static. It moves with wholesale market conditions, sometimes dramatically. Understanding why helps you anticipate changes and time your shopping accordingly.

Wholesale electricity market conditions

Pennsylvania utilities buy electricity on the PJM wholesale market. When wholesale prices rise — due to fuel costs, plant retirements, or demand spikes — the PTC eventually rises to reflect those costs.

Natural gas prices

Natural gas sets the marginal price of electricity in most hours. When gas is cheap, wholesale electricity is cheaper. When gas spikes (as it did during cold snaps in recent winters), electricity follows. PA's proximity to Marcellus Shale gas production provides some buffer, but prices still fluctuate.

Capacity auction results

PJM runs annual capacity auctions that determine how much generators are paid for being available during peak demand. The 2024 auction increased capacity prices by 833% — from $28.92 to $269.92 per megawatt-day. The 2026 auction pushed prices even higher, to $329.17. These costs are being phased into customer rates across 2025 and 2026.

Generation retirements

As older coal and nuclear plants retire, the grid has less buffer capacity. This tightens supply and puts upward pressure on both wholesale prices and capacity costs. Pennsylvania has seen significant coal plant retirements in recent years.

Growing demand

Data centers, EV charging, and building electrification are adding load to the PJM grid. Higher demand with constrained supply pushes prices up.

How to beat your utility's PTC

The whole point of knowing your PTC is to beat it. Competitive suppliers often offer rates below the default, and even small savings compound over a year.

The math

At typical Pennsylvania household usage of around 850 kWh/month:

• A 1¢/kWh savings = $8.50/month = $102/year
• A 2¢/kWh savings = $17/month = $204/year
• A 3¢/kWh savings = $25.50/month = $306/year

Higher-usage households save proportionally more. A household using 1,500 kWh/month during summer AC season could save $15-$45/month depending on the rate differential.

Where to find better rates

• PA Power Switch — the official state comparison tool
• Volt Butler — independent comparison with editorial guidance
• Direct supplier websites — some plans are only available direct

What to look for

• Rate below your PTC:The obvious starting point. If a plan isn't cheaper than your current default rate, why switch?
• Fixed rate for the term: Variable rates can spike above your PTC during high-demand periods.
• Reasonable term length:Match the contract to your situation. Don't lock into 24 months if you're moving in 6.
• Minimal fees: Monthly fees and early termination fees affect your total cost.

When PTC vs. competitive rates make sense

Default service isn't inherently bad. There are legitimate reasons to stay on your utility's PTC — and reasons to shop.

When default service (PTC) makes sense

• You can't find a rate below the PTC:In some market conditions, competitive rates aren't much better than default. If you can't beat it, don't switch for the sake of switching.
• You value simplicity: No contract to track, no renewal to remember. Default service is hands-off.
• You're moving soon:If you're leaving your utility territory within 2-3 months, switching may not be worth the administrative effort.

When shopping makes sense

• Rates are available below your PTC:If you can lock in 9.5¢/kWh when your PTC is 11.5¢/kWh, that's real money.
• You want rate certainty:Fixed-rate plans protect you from PTC increases. If wholesale prices spike, your locked rate doesn't change.
• You want green energy options:Many competitive suppliers offer 100% renewable plans that default service doesn't provide.

Frequently asked questions

Why is my PTC higher than last quarter?

PTC changes quarterly based on wholesale electricity costs and capacity market results. The 2024-2026 PJM capacity auctions set record-high prices due to coal plant retirements, data center demand growth, and electrification trends. These costs are being phased into customer rates across multiple quarters. Your utility passes through procurement costs without markup — when wholesale prices rise, so does your PTC.

How often does the PTC change?

Pennsylvania utilities update the PTC quarterly, typically on June 1, September 1, December 1, and March 1. The exact dates vary slightly by utility. Check your utility's website or the PA PUC's announcements for precise change dates. The PA PUC publishes upcoming PTC rates about two weeks before they take effect.

Can my utility raise the PTC without notice?

No. PTC changes require PA PUC approval and follow a predictable quarterly schedule. Your utility cannot raise the PTC arbitrarily. The rate is set through a regulated process based on actual procurement costs. The PUC publishes upcoming rates before they take effect, giving customers time to shop for alternatives if the new PTC is unfavorable.

What happens if I don't choose a supplier?

If you don't choose a competitive supplier, you automatically receive "default service" from your utility at the Price to Compare rate. There's nothing wrong with default service — it's reliable and regulated. But it's often not the cheapest option. Competitive suppliers frequently offer rates below the PTC, meaning you may be paying more than necessary if you don't shop.

Is the PTC the same across all PA utilities?

No. Each Pennsylvania utility has its own PTC based on its specific procurement costs and timing. PECO, PPL, Duquesne Light, Met-Ed, Penelec, Penn Power, and West Penn Power all have different PTCs. Even within FirstEnergy's Pennsylvania companies (Met-Ed, Penelec, Penn Power, West Penn Power), rates differ because each has its own procurement schedule and customer base characteristics.