Press Release

PA Consumers Lead Nation in Knowledge of Deregulation

    Harrisburg, PA – Ninety-five percent of Pennsylvanians are aware of the fact that they can or will soon be able to choose their electric generation supplier, according to a statewide survey released today by the Pennsylvania Electric Choice Program. This compares to a nationwide awareness level of less than 40 percent (a) and is 15 percentage points higher than a benchmark survey conducted in June.

    The Pennsylvania Electric Choice Program is being implemented jointly by the Public Utility Commission (PUC) and the Pennsylvania Electric Association (PEA), which represents the state’s 10 electric distribution companies. To measure the results of public education efforts on electric choice, statewide opinion surveys are being conducted periodically. The first was conducted prior to the launch of the program in June.

    In Pennsylvania, not only has awareness improved, but the most recent survey also indicates that knowledge of how to participate in the process is increasing, and has more than doubled since June – up to 40 percent from just 17 percent. Moreover, the desire to participate in the Electric Choice Program also has increased. Forty-three percent of those who have seen or heard information about being able to choose their electric generation supplier are more apt to participate based on what they’ve heard. This compares to 32 percent in June.

    A full one-third of respondents (33 percent) claims to have enrolled in the Electric Choice Program, which mirrors actual enrollment numbers. Since July 1, when enrollment opened, 1.8 million of the state’s 5.2 million electric customers have signed up for the opportunity to choose their electric generation supplier.

    "Strong consumer awareness is the first step to building a competitive marketplace for electricity," said Public Utility Commission Chairman John Quain. "This is only the beginning of the process, but all indicators suggest that competition can succeed in Pennsylvania. Consumers are aware, gaining an understanding of the process, and are increasingly willing to participate."

    According to Yankee Energy System’s 1998 deregulation survey, consumer knowledge across the nation of energy deregulation has increased each of the past three years and is higher in areas where consumers are likely to be affected by deregulation. Total awareness has increased from 23 percent in 1996 to 38.1 percent in 1998. Awareness is lowest in the South, where few states have moved to restructure and highest in the West (53 percent) and Northeast (50.8 percent), where states such as California and Pennsylvania have begun to implement electric choice.

    The Pennsylvania Electric Choice education program began in late June with the launch of a statewide advertising campaign and a mailing to all 5.2 million electric customers, which explained how to enroll in the program. In addition, the PUC and the state’s electric distribution companies are reaching out to community-based organizations across the state to engage them in the education process. Most of the program’s educational materials are available in Spanish and in large print or audio cassette format for those with difficulty reading.

    "The innovative and comprehensive Electric Choice communications program is clearly working," said Jim Cunningham, president of the Pennsylvania Electric Association. "The results show the partnership of the PUC and the electric distribution companies has achieved its initial goal of building broad consumer awareness of the opportunity to shop for a power supplier. We must now build on the solid base of consumers who can confidently shop in the new, competitive electricity marketplace."

    In late September, customers who enrolled in the Electric Choice Program received information in the mail on how to shop from their electric distribution company. The mailing contains a "How to Shop" brochure, a list of PUC-licensed suppliers for their area, a per kilowatt-hour price to use to compare supplier prices, a simple guide to calculate savings, and a checklist of questions to ask when shopping.

    There is no deadline for selecting an electric generation supplier, and consumers are encouraged to take time to compare the offers of different suppliers before deciding whether or not to switch. Consumers who do select a new supplier by Nov. 15 will have their switch occur following their first meter reading in January 1999 (GPU Customers can decide up to D

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