Commercial electricity and gas rates, energy market structure, regulations, and utility providers for property managers operating in Pennsylvania.
Pennsylvania has a deregulated electricity market, with competitive supply available since 2010. PECO (serving the Philadelphia metro) and PPL Electric (serving central and eastern PA) handle distribution. Commercial customers can shop for generation supply through licensed Electric Generation Suppliers (EGS). Pennsylvania participates in the PJM Interconnection wholesale market.
What this means for property managers:
In Pennsylvania's deregulated market, you can shop for competitive electricity supply rates from third-party providers. This creates opportunities for cost savings through contract negotiation, but also requires active management of supply contracts, renewal timelines, and market price monitoring. Distribution charges remain fixed with your local utility.
Commercial customers can choose their electricity supplier from competitive providers.
Rising
PJM capacity market auctions have driven significant increases in the capacity component of commercial bills, with some accounts seeing 20-30% increases in that line item alone.
Pennsylvania does not have a statewide benchmarking mandate, but Philadelphia enacted the Building Energy Performance Program (BEPP) requiring commercial buildings over 50,000 sqft to benchmark and disclose energy usage, with building tune-up requirements. Pittsburgh has also adopted energy benchmarking. The state's Alternative Energy Portfolio Standard requires increasing percentages of renewable energy in the supply mix.
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