Types of Electric Suppliers

All businesses and residential customers in the West Penn Power service territories can shop for their electric generation supplier. The supplier you choose might be a firm located in Pennsylvania or elsewhere in the U.S. If you decide not to choose a supplier right away, West Penn Power will continue to supply your electricity until you do.

The following are some of the types of electric generation suppliers. 

  • Aggregator - An entity, licensed by the PaPUC that purchases electric energy and takes title to electric energy as an intermediary for a large number of consumers and to bargain on their behalf for electricity and related services. The group "aggregates" or combines customers into one large customer for purposes of negotiation. It purchases the electricity as a single customer for the group.
  • Electric Generation Supplier - A person or corporation, generator, broker, marketer, aggregator or any other entity licensed by the PaPUC that sells electricity to customers, using the transmission or distribution facilities of an electric distribution company.
  • Investor Owned Utility - A utility company owned and operated by private investors.
  • Marketer - A company, licensed by the PaPUC that buys and resells electricity, but typically does not own generating facilities.

Additional definitions can be found at the Pennsylvania Public Utility Commission (PaPUC) website.

All electric generation suppliers must be licensed by the PaPUC, including municipalities and boroughs that want to provide service outside their municipal limits. Rural electric cooperatives must have a certificate to supply service outside their areas.

All licensed suppliers will be required to furnish a bond that will ensure their financial responsibility and the supply of electricity to satisfy their contracts. Consumers who want to know if an electric supplier is licensed can check with the PaPUC or ask West Penn Power for the PaPUC's list of licensed suppliers.

For additional information about electric competition, call the Retail Choice Center toll-free at 866-592-6171.

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