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Default rate vs competitive suppliers in Pennsylvania
Most Pennsylvania customers pay their utility's default rate without knowing they have other options. Here's how the default rate (Price to Compare) stacks up against what competitive suppliers actually offer.
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Written by John Spencer
Updated May 2026
Free comparison · No credit check required · 886 plans from PA suppliers
What the default rate (Price to Compare) is
If you've never chosen an electricity supplier, you're paying your utility's Price to Compare (PTC)— the default generation rate. This isn't a markup or penalty; it's simply what your utility pays to procure electricity on your behalf, passed through without profit.
The PTC covers three things: generation (producing electricity), transmission (moving it across high-voltage lines), and compliance costs (renewable energy mandates, taxes). It does not include delivery charges, which you pay regardless of your supplier.
Each PA utility updates its PTC on a different schedule. PECO adjusts quarterly; PPL and Duquesne Light adjust twice yearly; FirstEnergy utilities (Met-Ed, Penelec, Penn Power, West Penn Power) update quarterly. Rates reflect wholesale market conditions from recent PJM auctions.
Current default rates (through May 31, 2026)
PECO
11.024¢
PPL Electric
12.953¢
Duquesne Light
13.750¢
Met-Ed
12.965¢
Penelec
11.747¢
Penn Power
12.606¢
West Penn Power
10.947¢
Range: West Penn Power at 10.947¢ (lowest) to Duquesne Light at 13.75¢ (highest)
What competitive suppliers offer
Pennsylvania's deregulated electricity market includes 100+ PUC-licensed suppliers competing for your business. They buy electricity from the same PJM wholesale market but can offer different pricing structures, contract terms, and rates.
Competitive suppliers typically beat the default rate because:
- Bulk purchasing: Large suppliers aggregate millions of customers and negotiate volume discounts
- Flexible timing: They can buy when wholesale prices are low, while utilities follow rigid procurement schedules
- Competition: Dozens of suppliers competing for your business drives prices down
- Lower overhead:Suppliers don't maintain distribution infrastructure — they only handle billing and customer service
Current supplier market (May 2026)
Fixed-rate plans (3+ months) start as low as 9.09¢/kWh — up to 22% below the highest utility default rate. This comparison filters out short-term teaser rates to show real, sustainable savings.
Savings by utility territory
How the default rate compares to the best available fixed-rate plan (3+ months) in each utility territory. Annual savings calculated at average monthly usage per utility.
| Utility | Default Rate | Best Fixed Rate | Annual Savings |
|---|---|---|---|
| PECO | 11.024¢/kWh | 9.09¢/kWh | $197/year |
| PPL Electric | 12.953¢/kWh | 10.99¢/kWh | $212/year |
| Duquesne Light | 13.750¢/kWh | 10.79¢/kWh | $302/year |
| Met-Ed | 12.965¢/kWh | 11.49¢/kWh | $150/year |
| Penelec | 11.747¢/kWh | 10.59¢/kWh | $122/year |
| Penn Power | 12.606¢/kWh | 11.29¢/kWh | $134/year |
| West Penn Power | 10.947¢/kWh | 9.49¢/kWh | $157/year |
Default rates are current PTC through May 31. Best fixed rate is the lowest 3+ month fixed-rate plan available via PA Power Switch. Savings calculated at each utility's average residential usage (850-900 kWh/month).
Rates increase June 1, 2026
All 7 PA utilities are raising their PTC. Penelec jumps 11.9%, West Penn 10.3%, Met-Ed 7.6%. Locking in a supplier rate now protects against these increases.
Why the gap exists
Wholesale vs. retail timing
Utilities lock in default service rates months in advance through regulated auctions. Suppliers can respond faster to market conditions, buying when prices dip and passing savings to customers.
Competition drives prices down
With 100+ suppliers competing for PA customers, there's constant pressure to undercut competitors. Utilities have no such pressure — they earn revenue from delivery charges, not generation supply.
Contract terms and scale
Large suppliers serve millions of customers across multiple states. They negotiate volume discounts and hedge risk across a broad portfolio. Individual utilities are limited to their service territory.
For deeper analysis of why PA rates are rising, see our PJM capacity auction explainer.
What you give up by switching
Switching saves money, but there are tradeoffs to understand.
Contract expiration requires action
When your supplier contract ends, you may auto-renew at a higher variable rate. You need to set a reminder to shop again before expiration — or choose a supplier with good renewal terms.
Early termination fees may apply
Some fixed-rate contracts include ETFs of $50-150 if you cancel early. Always check the terms. Many plans have no ETF, and we highlight this in our listings.
Variable rates can spike
Month-to-month variable plans offer flexibility but no price protection. If wholesale prices surge (cold snap, grid emergency), your rate can jump significantly. Fixed-rate plans avoid this risk.
What you keep when you switch
Switching suppliers changes only who generates your electricity. Everything else stays the same.
Same utility (PECO, PPL, Duquesne Light, etc.)
Your utility doesn't change. They still deliver your power.
Same delivery infrastructure
Same wires, same poles, same meter. No equipment changes needed.
Same outage response
Your utility handles all outages regardless of supplier. Call them, not your supplier.
Same billing (usually)
Most suppliers use consolidated billing through your utility. One bill, same as before.
Same payment methods
AutoPay, budget billing, and assistance programs all continue to work.
Right to return anytime
You can switch back to the default rate whenever you want (check for ETFs first).
Find your savings
Enter your ZIP code to see available supplier plans in your utility territory.
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Frequently asked questions
What is the Price to Compare (PTC)?
The Price to Compare is your utility's default generation rate — the cost per kilowatt-hour for electricity supply if you haven't chosen a competitive supplier. It covers generation, transmission, and compliance costs, but not delivery charges. The PTC is set through a regulatory process and updates quarterly (for FirstEnergy utilities) or quarterly/twice yearly (for PECO, PPL, Duquesne Light).
How does my utility set the default rate?
Utilities don't generate electricity themselves anymore. They buy it on your behalf through wholesale auctions managed by PJM Interconnection. The Price to Compare reflects what they paid in these auctions, plus transmission costs, taxes, and renewable energy compliance fees. Rates change when new supply contracts take effect.
Why don't more PA customers switch suppliers?
Many customers don't know they have a choice — they've never received information about competitive options, or they assume the utility's rate is the best deal. Others worry switching is complicated or risky. In reality, about 41% of PA households have already switched, and the process takes minutes with no service interruption.
Can I switch back to the default rate later?
Yes. You can return to your utility's default service at any time. If you're mid-contract with a supplier, check for early termination fees first. Once you notify your supplier (or let the contract expire), you automatically return to the Price to Compare within 1-2 billing cycles.
Does the default rate ever beat competitive rates?
Occasionally, especially during wholesale price spikes when utilities have locked in lower rates through long-term contracts. But over multi-year periods, competitive suppliers consistently offer rates below the PTC. The current market (May 2026) shows supplier rates 1-4 cents below default across all PA utilities.
Related resources
PECO utility page
Plans starting at 9.09¢/kWh
PPL Electric utility page
Plans starting at 10.99¢/kWh
Duquesne Light utility page
Plans starting at 10.79¢/kWh
Met-Ed utility page
Plans starting at 11.49¢/kWh
Penelec utility page
Plans starting at 10.59¢/kWh
Penn Power utility page
Plans starting at 11.29¢/kWh
West Penn Power utility page
Plans starting at 9.49¢/kWh
Price to Compare explained
What the PTC is and how to use it
How to switch suppliers
Step-by-step guide for PA
PJM 2026 capacity auction
Why PA rates keep rising
How we gather this information
We pull supplier plan data directly from PA Power Switch, the official Pennsylvania PUC shopping website. Our automated system refreshes this data weekly.
Utility default rates (Price to Compare) come from official utility filings with the PA PUC. The "best fixed rate" shown is the lowest rate for plans with 3+ month terms — we filter out 1-month teaser rates that revert to higher variable pricing.
Plans are sorted by rate with no paid placements. We may earn a commission if you sign up through our links.
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886 plans across PA · Updated May 2026