What Happens When My PA Electricity Plan Expires?
The last thing most electricity customers think about when they shop for a new electricity plan is what happens when the plan ends. The problem is that it can be just as important as deciding which plan to choose. The reason is that while your plan with a supplier may end, your relationship with them doesn't necessarily end. And that can be a problem...
According to PA law, as your contract with your electricity supplier draws to an end, they are required to send you two notices. The first one comes between 45 to 60 days before the contract ends, either electronically or by delivered mail. This one is to notify you of the up-coming contract expiration. The second notice, or "Options Notice", is sent via first class mail so that it arrives 30 days before the contract expiration date. The Options Notice spell out your choices before your contract ends and on the date the contract ends.
Customers have three basic choices:
- Renew plan with current supplier. The notice will list the specific changes to the terms of service being proposed as well as any new pricing.
- Shop and switch to a new retail electricity supplier.
- Switch to your local utility's Price to Compare rate.
Switching suppliers can happen in as little as three business days. But it's best to allow several extra days. You new supplier notifies your local utility and your old provider about the switch. You will then receive a request for confirmation from your local utility it will list the date that you can effect the change-over without facing a cancellation fee.
What Happens If I Ignore My Electric Supplier Renewal Notices?
WARNING: Do not ignore electric supplier renewal notices!
If you do nothing when the notice arrives, your current supplier can automatically renew you to an expensive variable rate plan. Under PA law, suppliers are only required to tell customers about the price for the first billing cycle and nothing afterwards. That means you could face sudden sharp price increases without warning.
So be sure to expect and respond the renewal notices to arrive as your plan nears its expiration date.