Frequently Asked Questions
Consumers in Pennsylvania and New Jersey - including electric cooperative members like you - are now able to choose the company that generates their electricity. This means you no longer have to buy electric power from the local utility that delivers it to your home or business. Instead, you are be able to "shop for power," if you wish.
Here are answers to some questions you might have about consumer choice. Warren Electric Cooperative will continue to provide you with information and updates on your rights and choices under the law.
Questions and Answers
Q. What Exactly is Customer Choice?
A. Simply put, it's the ability of consumers to choose the company that generates their electricity. This generation supplier could be your local electric co-op, or any licensed provider - even one from outside the state.
Q. How does Customer Choice Work?
A. It's like choosing a long-distance phone company. You select a generating company, but Warren Electric co-op, will still deliver the electricity to your home or business over its existing power lines in the same way long-distance calls are routed over your local phone company's lines.
Q. When did Customer Choice begin?
A. In Pennsylvania, all (100%) of electric co-ops members had customer choice on January 1, 1999. For IOU's it began for one-third of electric consumers on January 1, 1999. Another third was included on January 2, 1999, with all customers having choice on January 1, 2000.
Q. Will I still be a Co-op Member?
A. Yes. Even if you buy electric generation from a supplier other than your co-op, you will remain a co-op member and receive your electricity over co-op lines.
Q. Can I keep buying electricity from my Co-op, anyway?
A. You sure can. Remember, you have a choice. That means you can choose not to switch, and your local electric co-op will continue to supply you with electricity - just as it does now.
Q. Will my electric bill look different?
A. Yes, it will. Customer choice requires costs to be shown separately. For example, on your co-op bill, you may see separate charges for generation (kilowatt-hours puchased), transmission, distribution and metering. In addition, there may be a line item to cover stranded costs. (But more about those later.) You may also request a separate bill for generation, if you buy your electricity from someone other than your co-op.
Q. How will I be able to "shop" for power suppliers?
A. You will receive information on competiting generation suppliers from Warren Electric Cooperative or state regulatory agency ( Pennsylvania Public Utility Commission). Also, some suppliers may contact you by phone or mail, or both.
Q. Will competition make electric rates come down?
A. Competition may cause generation cost to decrease, but no one knows for sure by how much. Any savings you might see will probably depend on how much eletricity you use and the plan you select. It is important to keep in mind, though, that generation costs are only part of your total electric bill, so don't expect any giant reductions. Remember, too, that Warren Electric Cooperative operates on a non-profit basis. This means co-ops will continue keeping rates for delivering electricity and other local services as low as possible.
Q. Must I sign a contract?
A. Not necessarily, although in some cases a contract between consumers and generation suppliers may be required. Remember, a contract may lock in a certain price, but it can also lock you out of savings that might be able to find in the meantime.
Q. If I switch suppliers and I'm not happy, can I switch again?
A. You will be able to switch only within the limits of your purchase agreement. For example, your contact may state that you may only switch at the end of a billing period. As always, the best advice is: read the "fine print."
Q. What are these "stranded costs" you mentioned?
A. An electric company's investments in things like power plants and lines can become "stranded" when their customers buy generation elsewhere. If the "stranded" amount is too great, that company can quickly become uncompetitve. To recover at least some of these costs without raising rates above market prices, utilities may impose a charge on those customers buying power elsewhere as a way to protect their remaining customers.
Q. Will all customers, including low-income and rural resident, still get electricity?
A. Yes. Customer Choice requires that all customers continue to have access to electricity. It also mandates that all consumers be allowed to shop for the best electric generation deal.
Q. What about power reliability?
A. Bad weather and other unforeseen events--including outages on the transmission lines of GPU-Energy that delivers power to Warren Electric co-op substations--will continue to be a challenge. However, your co-op will still be the "People You Can Count On.™" to keep power flowing to your doorstep. Competition won't change that.
Q. What if something happens and my supplier can't generate power?
A. Your co-op would then provide electric generation, so your power is not interrupted. The rate you'll pay for this "back up" power will be pre-set by your co-op.
Q. I presently read my own meter. Will competition change this?
A. When deregulation kicks in, co-op members who switch to a power supplier other than their co-op may not be able to read their own electric meters. Alternative generation suppliers may demand daily (or more frequent) readings, something not possible under a self-read set-up.
Q. Will my co-op continue to be involved in the community?
A. Absolutely. Warren Electric Co-op has always provided more than just electricity to the communities we serve. Warren Electric has assisted rural areas with NOAA Weather Radio, fire protection, business/home loan programs, Youth Tours and solutions to wastewater problems. Co-ops will continue doing these things even after electric competition.
Q. Who do I call if I have other questions?
A. Anytime you have a question, simply call the Warren Electric Co-op office Electric Choice Hotline at 1-800-364-8640 between 7:30 AM to 4:00 PM, Monday - Friday. We will be glad to help.
As more Questions and Answers come up, WEC will add it to this web page.
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