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Making a Smart Electricity Choice

1. What do I need to think about before choosing an electricity generation supplier?

Before making a choice, take a few moments to decide why choosing an electricity generation supplier is important to you.

• Is it the supplier who has the lowest price?

• Do you want electricity generated by environmentally friendly or renewable resources such as wind or solar?

• Do you want flexibility to switch suppliers without a long-term contract?

Knowing the answers to these questions will help you determine which electricity supplier best suits your needs.

2. What is my price to compare and why is it important in choosing a generation supplier?

On the bottom of page two of your electric bill, you will find your price to compare number. This is the price you pay per kilowatt-hour (kWh) of electricity. Each supplier provides the District of Columbia Public Service Commission with its average price per kWh, which enables you to see which supplier has the lowest rate.

So if your price to compare is $0.0683 or 6.83 cents per kWh, and you want electricity at the lower price, a new supplier would have to generate your electricity for less than 6.83 cents per kWh.

When making cost comparisons, remember that the cost per kWh could be only one part of the generation cost. Suppliers can also include other standard fees in addition to the per kWh rate that could affect the price you pay. Make sure you ask about any additional fees.

Remember, the generation supply is only one of three parts of your electricity bill. Pepco will continue to charge you for distribution and transmission services, regardless of who generates your electricity.

3. Who are the licensed generation suppliers?

Before choosing a generation supplier, make sure you know all of the electricity supply choices that are available to you. To find out about all of the licensed generation suppliers in the District of Columbia, click here to visit the District of Columbia Public Service Commission (DCPSC) to see the list of suppliers or contact the DCPSC at (202) 626-5100 or the Office of the People’s Counsel at (202) 727-3071.

DCPSC and the Office of the People’s Counsel can tell you what companies are taking new customers and what their rates are – remember to have your price to compare number handy!

Currently, the number of electricity generation suppliers for the District of Columbia is limited, but that number may increase as competition develops.

Current suppliers are:

Washington Gas Energy Service
1-888-884-WGES

Pepco Energy Services
(703) 253-1800

If you decide not choose a new supplier or simply take no action, Pepco ,as the default supplier, will continue to supply your electricity. This is called Standard Offer Service.

You can contact Pepco at (202) 833-7500 or at www.pepco.com.

You may also receive materials in the mail about new suppliers. Contact DCPSC or the Office of the People’s Counsel to learn more about any offers you receive.

4. Before I sign a contract, what details should I pay attention to?

Before signing a contract with a new electricity supplier, you should:

• Carefully review the contract;
• Ask about additional fees;
• Determine the length of the contract
• Determine what happens if you need to break the contract; and
• Ask for the generation supply to be included in your monthly Pepco bill

Once you sign a new contract with a new electricity supplier, your new supplier will notify Pepco that you are switching suppliers. It will take approximately 30 days for the transfer to occur. Your electricity service will not be interrupted during this process.

By asking your new supplier to include their generation cost in your monthly Pepco bill, you will continue to receive one electric bill from Pepco. The “Generation Services” section of your electric bill will have the new suppliers name identified on it. You will continue to make one monthly payment to Pepco and then Pepco will pay the electricity generation supplier.

If you have already made a choice and have a contract with an alternative supplier, make sure you understand any associated fees with canceling your contract. Contact DCPSC for information on your choices and for the steps outlined about before signing another contract.

Choice and the District Market

1. Will there be more choices in the future?

Currently, there are a limited number of suppliers that are active in the District’s competitive electricity market. The number of suppliers, however, may increase as competition in the market continues to develop.

2. Will my bill eventually decrease as the District’s competitive electricity market develops?

Currently, it’s hard to say. Competition historically leads to lower prices over time. A major determining factor in electricity prices is the cost of fuel. In the past year or two, the cost of these fuels used to generate electricity such as coal and natural gas has increased dramatically, impacting the price you pay for electricity.

Energy Efficiency Resources for Consumers

1. Are there ways I can reduce my electricity bill?

You can take charge of your electricity bill by taking simple, easy steps to reduce your energy use. For example, you can clean or replace air conditioning filters and forced air heating filters once a month. You can also use compact fluorescent bulbs to boost light output and use less energy. For more tips and information go to www.pepco.com or call (202) 833-7500.

There are a number of other resources available to consumers including possible payment assistance for those who qualify and information on energy efficiency and ways to lower your electric bill. District residents seeking more information should contact:

American Council for an Energy-Efficient Economy
(202) 429-8873

DC Energy Office
(202) 673-6750

District of Columbia Public Service Commission
(202) 626-5100

Energy Star
(888) STAR-YES

Office of the People's Counsel
(202) 727-3071

Pepco
(202) 833-7500

The Alliance to Save Energy
(202) 857-0666