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Bryan Miller — Energy Consultant & Advisor, Shipley Energy Advisors
Electricity costs continue to pressure Pennsylvania businesses — from small manufacturers to regional healthcare networks and large distribution centers. While energy itself isn’t getting cheaper, the way you buy it can make a measurable difference.
If your business is still taking service under the utility’s default “Price to Compare” (PTC) — the regulated rate that utilities must offer — you may be missing out on significant savings and flexibility available in Pennsylvania’s competitive market.
Pennsylvania was one of the early adopters of electric choice. That means companies in PPL Electric, PECO Energy, Duquesne Light, Met-Ed, Penelec, and West Penn Power territories can select a competitive supplier for their generation supply — while still receiving delivery and billing from their local utility.
The difference between doing nothing (staying on the default rate) and being proactive can easily amount to double-digit percentage savings and far better budget predictability.
(Ranges reflect current market-to-PTC comparisons as of recent auctions and wholesale pricing.)
Pennsylvania’s power markets are part of the PJM Interconnection, which manages both wholesale energy and capacity costs — the charges that ensure enough generation is available to meet future demand. These capacity auction results play a major role in shaping retail supply prices for commercial and industrial buyers. However, most businesses still default to standard 12- or 24-month terms without considering where capacity and forward energy curves are trending. This can mean renewing into a high-priced window or missing a temporary dip in wholesale rates.
As an energy consultant, I focus on aligning contract timing with your operational needs and the broader market cycle. That means analyzing forward pricing, capacity trends, and your start date to find the sweet spot — sometimes an 11-, 15-, or 17-month term that sidesteps volatile market periods and locks in value before the next utility auction adjustment.
The strategy: Match your contract term to the most favorable section of the market curve — not just a round number on the calendar. This timing-driven approach helps you secure lower costs, avoid risky renewal windows, and maintain budget stability across fiscal years.
Pennsylvania’s deregulated model is fully mature: utilities no longer earn profit on generation supply. Instead, they pass through energy costs from wholesale auctions several times a year. That creates opportunities for well-timed procurement. When the market dips between auctions, commercial buyers who act quickly can lock in favorable rates before utilities adjust their PTC in the next filing.
For most businesses, energy ranks among the top five controllable expenses — but it’s often left unmanaged. Treating electricity as a strategic procurement category rather than a recurring line item transforms it from a cost burden into a competitive advantage.
If your accounts are currently on the UTILITY DEFAULT PTC, you’re likely paying more than necessary — and represent the single greatest opportunity for savings.
Other indicators it’s time to review your options:
When reviewing supplier proposals, make sure to:
Target outcome: 8–18% reduction in supply cost + better renewal flexibility and predictability
Contact Shipley Energy today to explore electricity plans that fit your business’s needs and learn more strategies for managing your energy costs throughout the year.
