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Understanding Contracts

Know the lingo when it comes to kilowatt-per-hour rates and minimum contract term lengths.

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Electric Generation Supplier Contract Summary

Each electric supplier must now give customers an Electric Generation Supplier Contract Summary when they enroll in a new contract. This is an easy-to-read, one-page document which includes the following information:

Term Description
Electric Generation Supplier Information Name, telephone number, website, etc. Plain language statement that the supplier is responsible for generation charges.
Price Structure Fixed or variable.  If variable, based on what?  If variable, how often is the rate expected to vary? If variable, give any applicable ranges/ceilings. If no ranges/ceilings, a plain language statement indicating this fact.  If variable, describe when the customer will receive notification of price changes in relation to time of month, final monthly meter read, billing cycle or when the price takes effect.  
Generation/Supply Price $/kWh or ¢/kWh. If variable rate, the first billing cycle’s rate. Any introductory rate with length of term.
Generation Price at Various Usage Levels

Price per kWh for usages at:

  • 500 kWh
  • 1,000 kWh
  • 2,000 kWh

**This row is required only if the price varies by usage and/or there are fees in addition to the per kWh price.  See 52 Pa. Code §§ 54.5(c)(4) and 54.7.
Statement Regarding Services Plain language that the supply price may not always provide savings to the customer.
Deposit Requirements Any deposit requirements necessary for a customer and any terms associated with that deposit, in plain language.
Incentives

Any bonuses, discounts, cashback, etc., offers and any associated terms, in plain language.

**This row is required only if the supplier is offering any special incentives.
Contract Start Date Plain language regarding start of EGS service (meter reads/billing cycles/etc.).
Contract Duration/Length In months, billing cycles, etc. 
Cancellation/Early Termination Fees Yes or no. If yes, describe the amount of the fee and how to avoid that fee, if possible.
End of Contract   Treatment of customer at end of contract.  Timing of notices.   
Right of Rescission An explanation of the customer’s 3-day right of rescission per 52 Pa. Code § 54.5(d) and how to exercise this right.

 

Canceling an Agreement

Before switching suppliers, carefully review your contract’s disclosure statement to see if there are any penalty/switching fees or cancellation fees. Call your current supplier if you are not sure.

Switching back to your electric distribution company comes with no cost.


Contract Renewal Notice

You will receive two renewal notices before your contract expires - one 45-60 days prior and the other 30 days prior. The second notice, known as the option notice, includes:

  • Specific changes to the terms being proposed.
  • Information on new prices.
  • An explanation of the customer’s options and how to take action.
  • The date by which action must be taken by the customer.
  • The telephone numbers and website addresses for the Commission and the Office of Consumer Advocate (OCA).

Make sure you read these notices, as they will assist you in making the decision to stay with your current supplier or shop for another supplier.

IMPORTANT: If you choose to take no action with your renewal and options notices, your rate may change. For example, a fixed rate may change to a monthly variable rate. If you have a variable rate, once the term expires, you may be moved to a different variable rate that could be higher.

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Frequently Asked Questions

Check your disclosure or contract summary to see if there is an early cancellation fee.  You can also contact your current supplier and ask – their phone number is on your bill.  If you do have an early cancellation fee, you can still switch suppliers, but if you do this before the end of your contract you may have to pay the early cancellation fee (early cancellation fees do not apply in the last 30 days of your contract – so you are free to shop during this time). 

Yes, you just have to contact your electric utility and request to return to your default service.  You should review your agreement with your current supplier to see if there are penalties for early cancellation if you wish to do this in the middle of your current contract. If you are not sure, call your current supplier.

You will receive your first notice depending upon how you agreed to receive notices from your supplier – check your disclosure or call your supplier if you have questions about this.  You will receive your second notice in writing by U.S. postal mail.  

It is important that you respond to your notices and take action.  If you do not respond to your contract expiration notices, your supplier can continue to provide you with service – but it may be at different terms and prices.  Your notices will explain these new terms and prices.  

If your contract with your supplier expires and you do not respond to your expiration notices, your supplier can continue to serve you – but your terms and price may change.  The supplier may even place you on a variable rate – but if they do, they must then provide you with advance notice of any future price changes. 

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400 North St, Harrisburg, PA 17120 | (800) 692-7380

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The Official Electric Shopping Website of the Pennsylvania Public Utility Commission. Copyright ©2024 Pennsylvania Public Utility Commission. All Rights Reserved.