With higher fuel costs expected to influence energy rates this winter, FirstEnergy Corp. (NYSE: FE) is encouraging customers of its utility companies in Ohio, Pennsylvania, New Jersey and Maryland to evaluate electric supply deals that fit their budget and protect against rising energy prices.
The price of natural gas – which makes up the largest share of U.S. electricity generation – has been rising in recent months due to low inventory levels and continuing demand. The U.S. Energy Information Administration (EIA) expects natural gas prices to remain volatile over the winter months, with colder weather potentially driving demand and prices even higher. As these costs fluctuate, customers could see an increase in the rates they pay for electric generation.
In deregulated states like Ohio, Pennsylvania, New Jersey and Maryland, FirstEnergy’s utilities deliver electricity to homes and business and bill for electricity, but customers have the ability to shop among a wide range of competitive energy suppliers for electric generation, which typically represents about half of a customer’s monthly bill. A variety of energy pricing options and plans are available from these suppliers. A careful review of those options could result in potential savings this winter.
“With energy rates elevated and poised to increase further, we encourage our customers who live in states with energy choice to review their bills and make sure they’ve selected a plan that best meets their monthly financial needs,” said Mark Jones, vice president of Customer Engagement for FirstEnergy.
When evaluating options, customers should consider energy price, plan structure (fixed or variable rate), contract terms and conditions, and any taxes, charges or fees that may apply. Customers who choose not to shop among suppliers can continue to rely on their local utility for all facets of electric service, including generation (default service). In some cases, the prices paid for electricity under default service may offer savings over competitive energy plans. Customers should consult the price to compare under the “Messages” section of their electric bill when considering their different alternatives.