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The Pennsylvania Power Market is Evolving—is Your Business Prepared?

When Pennsylvania deregulated in 1996, rates were frozen for certain utilities to give the competitive market time to grow and to allow time for the regulatory proceedings required to implement this bill. At the end of this year, the rate caps the PP&L territory, one of the remaining five utilities that still has caps, will be ending and businesses receiving energy supply from that utility will be faced with increases to default service pricing. Large C&I customers (those above 500kW) who stay with the utility will default to hourly pricing, or market-based rates, as opposed to a fixed price.

These changes can amount to uncertainty for customers in this region who are not prepared for rate increases or hourly pricing. Representatives from the Direct Energy Business’ Government & Regulatory Affairs and PA Sales teams help make sense of the changes in Pennsylvania and how they will impact businesses.

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>> Buying Strategies for a Volatile Market
After trending consistently downward for most of the previous 10 months, natural gas and electricity finally showed some resilience. NYMEX natural gas futures reached a six-year low of $3.15 on April 27 but have traded within a range of $3.15 to $4.50 since then. May natural gas futures expired at $3.538, an increase of $0.12 or 3 percent during the month. Crude oil, now over $70 per barrel for the first time since last November, has rallied due to optimism that a recovering economy will spur demand and concerns about a weak dollar and inflation.
>> Regional Advocacy Issues
Direct Energy Business is working on behalf of our customers to help secure favorable legislation and initiatives that support retail choice and competitive wholesale markets, including: supporting California’s direct access bills and supporting competitively-neutral post-rate cap utility procurement plans in Pennsylvania.
>> Commodity Pricing Charts
See the latest commodity pricing charts, including regional electricity pricing, crude and natural gas futures, historical average weekly coal spot prices and Canadian commodity pricing.
>> Company News & Events
Learn more about the Direct Energy Business Committed to Pennsylvania event, our Event Greening activities, news from our parent company, Centrica, and upcoming events and trade shows where you can find us.
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