Best Fixed-Rate Electricity Plans in Pennsylvania

A fixed-rate plan locks your supply rate for the entire contract term — if you sign up at 9.5¢/kWh for 12 months, you pay 9.5¢ for all 12 months regardless of market changes. A variable rate can change monthly based on wholesale market conditions. Fixed rates provide budget predictability; variable rates offer flexibility but carry price risk.

Lock in fixed rates when you believe current rates are lower than future rates. With PJM capacity auction prices at historic highs ($329.17/MW-day in 2025 vs. $28.92 in 2023), many industry observers expect retail rates to increase. However, timing the market is difficult — the best approach is usually to lock in a rate you're comfortable with rather than waiting for a "perfect" moment.

An early termination fee is a penalty for canceling a fixed-rate contract before the term ends. ETFs typically range from $50 to $200 in Pennsylvania. Some plans have no ETF. When comparing plans, factor in the ETF risk — a slightly higher rate with no ETF might be better if you might move or need to switch suppliers.

PJM runs the regional grid and holds annual capacity auctions where generators are paid to ensure enough power is available. The 2025 auction cleared at $329.17/MW-day — an 833% increase from 2023. These costs eventually flow through to retail rates. Utility default rates typically reflect these costs first; competitive suppliers may absorb or pass through increases differently.

It depends on your situation and market outlook. Longer terms (12-24 months) provide more rate stability but lock you in if rates drop. Shorter terms (3-6 months) offer flexibility but require more frequent decision-making. Given current market conditions with expected rate increases, longer terms may offer better protection — but you're also betting on future market direction.