TL;DR: Pennsylvania’s open energy market lets you pick your own electricity and natural gas supplier – and that choice can save you real money. The average PA electricity rate is 17.78 cents per kWh, with rates ranging from 10.45 cents to 23.23 cents depending on the provider and plan. Suppliers like City Power and Gas, AEP Energy, Constellation, and Champion Energy Services offer fixed-rate, variable, and green energy plans. Use tools like PAPowerSwitch.com and pa.citypowerandgas.com to compare energy rates in PA, check your Price to Compare, and lock in a plan that actually lowers your bill.
The top electricity providers in Pennsylvania for smart savings are licensed energy suppliers that beat your utility’s default rate while offering price stability, good service, and clear terms. Companies like City Power and Gas are competitive suppliers that buy energy wholesale and sell it to you directly – and because they compete for your business, they often offer lower rates or unique plan structures that the utility does not. Other strong options include AEP Energy, Constellation Energy, Champion Energy Services, Inspire Clean Energy, and Green Mountain Energy. The key is to compare your utility’s Price to Compare (found on your bill) against what these suppliers charge, factor in contract length and fees, and choose a plan that fits both your budget and your values.
How Pennsylvania’s Electric Market Works
If you live in Pennsylvania, you already have something a lot of people in other states don’t: the right to choose your energy supplier. Back in 1996, Pennsylvania changed the rules. Instead of one company controlling everything, they opened things up, so now you can shop around for better deals.
Here’s the basic setup. Think of electric utilities as the postal service for electricity. They own the power lines, poles, and equipment in your neighborhood. Their job is getting electricity from power plants to your home safely and reliably. These are companies like PECO, PPL Electric, and Duquesne Light. You can’t pick them – they’re based on your address.
But the company that actually sells you the electricity? That’s your choice. Energy suppliers buy electricity from power plants and sell it directly to customers. Unlike utilities, suppliers don’t own power lines or fix outages. They focus on providing the actual electricity that flows through utility infrastructure.
Since launching in 2010, City Power & Gas – Electric and Gas Company in Pennsylvania, has been committed to providing the best rates and exceptional service as a leading electric and gas company in Pennsylvania. Their mission is to provide energy solutions tailored to your needs, whether you choose 100% renewable energy, a 50% blend, or a standard plan.
Pennsylvania’s deregulated electricity market includes 117 providers, so you have plenty of options. But plenty of options also means plenty of room for confusion – which is why knowing what to look for matters so much.
Why Rates Are Rising – and Why Choosing Matters More Than Ever
Let’s be honest: electricity rates in Pennsylvania have been going up, and that trend doesn’t look like it’s slowing down.
As of March 2026, the cost of electricity in Pennsylvania is 18 cents per kilowatt-hour – roughly 12% lower than the national average cost. That sounds reasonable until you look at how fast it’s been climbing. Electricity rates increased in most parts of Pennsylvania by 10-20% on June 1, 2025. The most recent actions by PJM are projected to tack on an additional increase of approximately 5% for electricity prices starting on June 1, 2026.
A PECO residential customer who uses 700 kilowatt hours of electricity monthly saw a 10% jump – or $13.58 extra per month – in 2025. These bills will go up another $2.70 each month in 2026.
A big driver behind these hikes is the PJM capacity auction system. Capacity costs are high because of the lack of energy supply in the face of growing demand. The July 2024 PJM capacity auction for 2025-2026 resulted in a bid price that was 833% higher than the 2024-2025 year.
PJM has predicted big growth in electricity demand, especially from data centers. These facilities are expected to use a much bigger share of total electricity, jumping from 4.4% in 2023 to somewhere between 6.7% and 12% by 2028.
All of this makes one thing clear: sitting on the default utility rate without comparing options could cost you hundreds of dollars a year.
Top Electricity Providers in Pennsylvania
Not every energy supplier is worth your time. Here are some of the most reliable electricity providers in Pennsylvania right now, based on rate quality, plan options, and customer experience.
City Power and Gas
Since 2010, City Power & Gas – Electric Company in Pennsylvania, has been committed to providing the best rates and exceptional service as a leading electric and gas company in Pennsylvania. Their mission is to provide energy solutions tailored to your needs, whether you choose 100% renewable energy, a 50% blend, or a standard plan.
What makes them stand out goes beyond just rates. As a City Power & Gas customer, you’re automatically enrolled in their exclusive Rewards program. Each month, you’ll receive $25 in Reward Dollars that you can use at over 330,000 local deals, restaurants, stores, and brands – that’s up to $300 worth of savings per year. They also value customer loyalty with an annual cashback reward, calculating 2% of your total energy supply spend and sending you a check for that amount.
City Power and Gas does not surprise customers with hidden fees. Their rates and fees are outlined and explained in the Terms and Conditions that accompany each service plan.
If you’re looking for an electric and gas company in Pennsylvania that bundles solid rates with real perks, City Power and Gas is a strong pick. You can compare plans right now at pa.citypowerandgas.com.
AEP Energy
AEP Energy is a well-known energy supplier in PA that regularly posts competitive fixed-rate plans on PAPowerSwitch. They tend to offer rates lower than default utility pricing during certain seasons, making them a good option for cost-focused shoppers.
Constellation Energy
Constellation is one of the largest energy providers in the country. They serve over 2.5 million customers across multiple states and have set a goal of reaching 100% carbon-free energy by 2040. For customers who want green energy in Pennsylvania from a big, established brand, Constellation is a solid choice.
Champion Energy Services
Champion is known for simple pricing and strong customer service. They post on PAPowerSwitch regularly with straightforward fixed-rate plans and no confusing contract language.
Other Notable Suppliers
Other electricity providers worth checking include Inspire Clean Energy, Green Mountain Energy, Public Power, APG&E, CleanChoice Energy, and Verde Energy USA. Each offers different plan types, from basic fixed-rate deals to 100% renewable energy plans.
The full list of licensed suppliers with active offers includes companies like Clearview Energy, Direct Energy, Frontier Utilities, and many more – all listed on PAPowerSwitch.
Types of Energy Plans in Pennsylvania
Picking the right type of plan matters just as much as picking the right supplier. Here’s the breakdown.
Fixed-Rate Plans
A fixed rate stays the same for the length of your contract, usually 6 to 24 months. A variable rate changes each month based on market prices. Fixed rates are better for most households because they offer predictable bills and protection from price spikes.
If current rates look good to you, locking in a fixed-rate plan protects you from the next round of increases. Shopping for a fixed rate electricity plan from a supplier is smart because the utility rate does not yet reflect new, higher capacity costs. But if you stay with the utility rate, your bill will go up 10-20%. Fixed rate offers from suppliers already incorporate the coming capacity costs.
Variable-Rate Plans
Variable plans change from month to month based on market conditions. They can work in your favor during low-demand months, but they carry real risk. Variable rates spiked 300% during the 2024 polar vortex. For most families, the unpredictability isn’t worth the occasional savings.
Green Energy Plans
Many electricity providers in Pennsylvania offer plans backed by renewable energy. Green energy plans are supported 100% by Renewable Energy Certificates (RECs), which represent proof that 1 megawatt-hour of electricity was generated from an eligible renewable energy resource like biomass, hydro, solar, or wind.
City Power & Gas – Natural Gas Company in Pennsylvania, is dedicated to making a positive impact on the planet. Their energy comes from renewable sources, so you can feel good about powering your home with clean, green energy.
Green energy in Pennsylvania doesn’t have to cost a fortune. Many renewable plans are priced close to standard options, so you can reduce your carbon footprint without a huge premium.
How to Compare Energy Rates in PA
Shopping for energy doesn’t need to take all day. Here’s a quick process.
Step 1: Find Your Price to Compare
The Price to Compare, or PTC, is the rate your utility charges for the supply portion of your electricity or gas bill. It is listed on your bill. If a competitive supplier offers a rate below your PTC with no hidden fees, switching may save you money.
Step 2: Use PAPowerSwitch
Enter your zip code to instantly compare electricity plans for your home in Pennsylvania. The Pennsylvania Public Utility Commission regulates the many essential utilities you use every day, and PAPowerSwitch is just one of the many ways they help ensure safe and reliable service at reasonable rates.
Step 3: Compare at City Power and Gas
Shopping around for a new energy rate doesn’t have to be confusing or time-consuming. Get a free energy quote for any of their electricity, natural gas, or combination packages – all you need is your zip code! Head to pa.citypowerandgas.com to see current rates for your area.
Step 4: Read the Fine Print
Rate per kWh is not the whole picture. Look at contract length, early cancellation fees, and whether there is a monthly recurring charge layered on top of the rate. A plan showing 8 cents per kWh with a $15 monthly fee can end up costing more than a plan at 10 cents with no fee.
Step 5: Switch
Switching providers takes one to two billing cycles and causes zero interruption to your service. Your local utility still handles delivery, outages, and billing. The only thing that changes is who supplies your power – and how much you pay for it.
Smart Tips for Cutting Your Electricity Bill
Picking the right energy supplier is step one. But you can squeeze even more savings out of your monthly bill with a few simple habits.
- Shift high-usage appliances to off-peak hours. Running your dishwasher or laundry late at night or early morning can lower your delivery charges on time-of-use plans.
- Swap to LED bulbs and energy-efficient appliances. Reduce your electric bill by opting for energy-efficient appliances, installing smart thermostats, and replacing traditional bulbs with LEDs.
- Install a smart thermostat. Programmable and smart thermostats optimize heating and cooling around your schedule.
- Review your bill every month. Watch for rate changes, spikes in usage, or surprise fees. Catching these early saves you from bigger problems later.
- Take advantage of rewards programs. City Power & Gas automatically enrolls customers in their Rewards program, offering $25 per month in Reward Dollars at over 330,000 local deals – that’s up to $300 in annual savings.
Understanding Your Rights as a PA Energy Consumer
The Pennsylvania Public Utility Commission exists to protect you. The PA PUC is the government entity in the state of Pennsylvania that regulates providers of utility services, including electric and gas companies.
You have the right to clear pricing information, honest contract terms, and the ability to file a complaint if something goes wrong. Make sure any energy supplier you consider is licensed in Pennsylvania. You can confirm this on the PUC’s website. Licensed suppliers like City Power and Gas are required to follow state rules on pricing, disclosure, and customer service.
If a supplier’s teaser rate jumps after an intro period and they didn’t make that clear upfront, that’s a problem worth reporting. Stay alert, read your contracts, and don’t hesitate to call the PUC at 1-800-692-7380 if something seems off.
Natural Gas Providers in Pennsylvania
This article focuses on electricity, but it’s worth noting that the same open-market rules apply to natural gas. The natural gas side of things works similarly. UGI Utilities and Peoples Natural Gas are the main utilities, managing pipes and delivery across different regions. As gas suppliers, companies like City Power and Gas compete to supply the actual gas that flows through their infrastructure.
If you’re already comparing electricity rates, take a few extra minutes to check your natural gas rate too. Many energy suppliers – City Power and Gas included – offer both electricity and natural gas plans, sometimes at a bundle discount.
Frequently Asked Questions
1. Can I really choose my electricity provider in Pennsylvania?
Yes. Pennsylvania is a deregulated energy state. That means you have a choice. Your local electric utility company still delivers power and gas to your home, but the energy supplier – the company that sells you electricity or natural gas – can be chosen by you.
2. Will switching energy suppliers cause a service interruption?
No. Switching energy suppliers in Pennsylvania does not interrupt your service. Your local utility still delivers electricity and gas through the same infrastructure.
3. What is the Price to Compare on my electric bill?
The Price to Compare is a baseline energy rate calculated by taking the estimated amount you would pay your local utility for service – if you did not choose an alternate electricity supplier – and dividing that amount by your total kilowatt hours used. Any supplier rate below this number (with no hidden fees) could save you money.
4. What’s the difference between fixed and variable electricity rates?
A fixed rate stays the same for the length of your contract, usually 6 to 24 months. A variable rate changes each month based on market prices. Fixed rates are better for most households because they offer predictable bills and protection from price spikes.
5. Does City Power and Gas offer renewable energy plans?
Yes. Their mission is to provide energy solutions tailored to your needs, whether you choose 100% renewable energy, a 50% blend, or a standard plan.
6. What are the average electricity rates in Pennsylvania right now?
As of March 2026, the cost of electricity in Pennsylvania is 18 cents per kilowatt-hour – roughly 12% lower than the national average cost. Competitive suppliers may offer rates well below this average.
7. How long does it take to switch electricity providers in PA?
Switching usually takes 30-45 days with no service interruption. Your new supplier handles the paperwork with your utility.
8. Are there hidden fees when switching to a new energy supplier?
Some suppliers include monthly recurring charges or early termination fees. City Power and Gas does not surprise customers with hidden fees. Their rates and fees are outlined and explained in the Terms and Conditions that accompany each service plan. Always read the full terms before you sign up.
9. How do I compare natural gas rates in Pennsylvania?
The process is the same as comparing electric rates. Check your natural gas Price to Compare on your bill, then visit PAGasSwitch or pa.citypowerandgas.com to see if a competitive gas supplier can beat that rate.
10. Why are Pennsylvania electricity rates going up?
Aging infrastructure, transmission bottlenecks, and increased demand from data centers are hitting consumers’ wallets. Increasing demand, aging power infrastructure, and transmission bottlenecks lead to higher electricity rates. Capacity costs are high because of the lack of energy supply in the face of growing demand, and the 2024 PJM capacity auction resulted in a bid price 833% higher than the previous year.
Key Takeaways
- Pennsylvania is a deregulated state. You can pick your electricity and natural gas supplier without changing your local utility or losing service.
- Your Price to Compare is your benchmark. Find it on your bill and measure every supplier offer against it.
- Fixed-rate plans are the safest bet for most households. They lock in your rate and shield you from market spikes.
- City Power and Gas is a licensed PA energy supplier offering fixed-rate plans, renewable energy options, a $25/month rewards program, and 2% annual cashback – with no hidden fees. Compare plans at pa.citypowerandgas.com.
- Green energy plans are widely available and often priced close to standard plans.
- Rates are rising. Capacity costs jumped 833% in the last auction cycle, and bills across PA went up 10-20% in 2025 with more increases expected in 2026.
- Use PAPowerSwitch.com as a starting point to compare all licensed suppliers, then check individual supplier sites for the most current offers.
- Watch out for teaser rates that jump after an intro period, and always check for monthly fees and cancellation charges.
- Switching takes about 30-45 days, causes no service interruption, and your utility handles the transition.
Don’t forget natural gas. The same shopping approach works for gas suppliers, and companies like City Power and Gas offer both.