Electricity Generation Facilities and Your Pennsylvania Electricity Rate

by jsgs45 on November 10, 2010

Electric Rates PA

Electricity Transmission New Jersey to Connecticut

When deregulation occurs you still have an old but additional needed competitive environment going on beneath the scenes.

Power transmission companies in Pennsylvania get paid for expanding the electric grid, contracting with power generation companies and supplying reliable transport of energy to high demand areas. These same companies were the monopoly utility companies that also sold you retail electric service and still do even in a deregulated market.

Comparison of Pennsylvania Electricity Prices

Although now more retail electricity providers in Pennsylvania and Maryland can sell you electricity service these larger companies still do as well and continue to be the pole and wires company that delivers electricity to your home and business even if you choose a competing electricity company.

You see there will always be one pole and wire coming to your house so these large transmission companies will still continue to receive some of your electric bill dollars.

The transmission companies also can be your competitive retail electric provider unless they have decided to only be a transmission company.

These electricity transmission pole and wires companies in PA and NJ also operate in the business of building out the electric grid, creating new deals to send power to other states such as New York and the Long Island Power Authority which is a state owned utility in Manhattan.

Prior to deregulation this competitive environment has been going on and often times crosses state lines.

Some of the electricity transmission companies in New Jersey and Pennsylvania that participate in bringing electricity to your home or business are:

  • Jersey Central Power and Light Company
  • Neptune Regional Transmission System LLC
  • PECO Energy Company (Philadelphia Electric Company)
  • East Coast Power LLC
  • Hudson Transmission Partners LLC
  • Public Service Electric and Gas Company
  • Rockland Electric Company
  • Atlantic City Electric Company
Electricity Transmission to New York

Electric Power Transmission

These electric utilities have contracts with some of the new retail electric providers that sell competing electric rates in your area at often times cheaper prices than the old monopoly utilities.

These monopoly electric utilities assist in building out electric lines and connecting to generation facilities to provide electricity power where needed. Right now there is a competing deal under way for Hudson Transmission Partners to create an electric delivery line under the Hudson river from New Jersey to Manhattan. This would send New Jersey electric power across state lines to the Consolidated Edison electrical network.

Cross Hudson Corporation is another private electric transmission company that is also trying to compete to create a similar delivery line for electricity to the New York City Housing Authority from New Jersey.

Cross Hudson Corporations believes they are the better company for the job and so the fight is under way to see which electricity transmission company can get that job done best. Ultimately the state and federal regulators will determine who gets the job and it may pan out that two transmission lines are done by both companies.

Since both companies have already received contracts to do this job it appears that New York should have plenty of power for awhile.

This however can cause other issues both good and bad for those in New Jersey and even in Pennsylvania since both states rely on some of the same power generation facilities.

A cooperation among multiple states for retail electric power creates more demand for electric power which can drive up the price.

So if New York demands a lot of electricity during a peak period of the day it is up to the generation facilities and transmission companies to have planned for and worked out something to meet that demand without negatively effecting the price of electricity in their home states.

Having the energy transmission contract setup that does not over promise based on electricity generation facilities available to send out electric service is important.

Electricity Rates in New Jersey

New Jersey Electric Lines

Allowing two private companies to both construct electricity transmission lines from New Jersey to New York City will only help this demand situation in the long run which will have a more positive impact on retail electric customers in New Jersey and Pennsylvania.

More power plants may have to be built in PA and New Jersey eventually if we continue to send power out of state but it also offers these local states greater access to power during high demand times.

Energy consumers in PA and New Jersey ultimately benefit in allowing their transmission and generation industries to grow to create lucrative energy contracts to supply power to New York City and continue to drive down power prices for their local citizens.

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