Published in Learning Center • Energy 101

What is the Price to Compare? The One Number You Need to Know

Your electricity bill has a single highlighted number labeled "Price to Compare" or "Price to Beat." This number is intentionally placed where your eye will find it first. But what is it actually telling you? And why is it the most important number on your bill when shopping for a better rate?

This guide explains what the Price to Compare is, how utilities calculate it, why it matters for rate shopping, and how to use it strategically when switching suppliers.

The Basic Definition

The Price to Compare (PTC) is the per-kilowatt-hour (¢/kWh) rate that your utility's default supplier currently charges for electricity supply. It represents what you would pay if you stayed with the utility's standard rate and did nothing.

Price to Compare = Regulated utility's current supply rate (cents per kWh)

In simple terms: It's the baseline rate you can beat by shopping around.

How It's Calculated

Utilities calculate the Price to Compare by dividing their total supply charge by your usage in kWh. However, some jurisdictions use a slight modification:

  • Pennsylvania, Ohio, and most ERCOT markets: Simple calculation: Supply charge ÷ kWh used
  • New York and Connecticut (some utilities): Use a 12-month average rate to smooth out seasonal variations
  • Illinois: Use a benchmark rate set by regulators quarterly

Example (Pennsylvania):

Your utility bill shows:

  • Supply charge: $127.50
  • Usage: 1,020 kWh
  • Price to Compare = $127.50 ÷ 1,020 kWh = 12.5¢/kWh

Where to Find It on Your Bill

The Price to Compare is prominently displayed on bills in deregulated states, typically in:

  • A highlighted box at the top of the bill
  • Next to the "Standard Offer" or "Default Service" section
  • As a circled number on a side panel
  • In a "Shopping Summary" section with comparative rates

If you don't see a Price to Compare: You either live in a regulated state (no shopping available) or your utility isn't presenting it clearly. Contact your utility to ask for it, or calculate it yourself using your bill.

Real Bill Example

Here's what a typical Pennsylvania bill looks like:

PRICE TO COMPARE 12.5¢/kWh

This highlighted section tells you: "If you do nothing, you'll pay 12.5 cents per kilowatt-hour for electricity supply."

Why It Matters: The Shopping Comparison

The Price to Compare is your reference point for shopping. When you compare suppliers, you're trying to beat this number.

Scenario: Shopping for Better Rates

Your bill shows: Price to Compare = 12.5¢/kWh

You shop around and find these alternatives:

  • Supplier A: 11.8¢/kWh (beats PTC by 0.7¢)
  • Supplier B: 12.3¢/kWh (beats PTC by 0.2¢)
  • Supplier C: 13.1¢/kWh (WORSE than PTC by 0.6¢)

You should choose Supplier A. If you use 1,000 kWh/month:

  • PTC (staying put): 1,000 × $0.125 = $125/month
  • Supplier A: 1,000 × $0.118 = $118/month
  • Monthly savings: $7 | Annual savings: $84

Important Context: What Price to Compare Does NOT Include

The Price to Compare ONLY shows the supply rate. It does NOT include:

  • Delivery charges: What you pay the utility for poles, wires, and infrastructure (cannot be changed by shopping)
  • Regulatory riders: Grid modernization, tree trimming, decommissioning costs
  • Taxes: Sales tax or municipal fees
  • Base charges: Monthly customer fee (varies by supplier, some competitive suppliers charge this)

Critical point: When comparing suppliers, don't just compare their advertised rate to the Price to Compare. Include their base charges and any fees to calculate true total cost.

Complete Cost Comparison Example

Your PTC is 12.5¢/kWh with no base charge. You find:

  • Competitor A: 11.8¢/kWh + $5/month base = (1,000 kWh × $0.118) + $5 = $123/month
  • Competitor B: 11.5¢/kWh + $8/month base = (1,000 kWh × $0.115) + $8 = $123/month
  • Stay with utility: 12.5¢/kWh + $0 = (1,000 kWh × $0.125) + $0 = $125/month

Competitors A and B both save $2/month, but for different reasons. Competitor B has better rate but higher fees.

How Price to Compare Varies Across States

As of December 2025, here are typical Price to Compare rates by state:

State Typical PTC Range Notes
Pennsylvania 11.5-13.5¢/kWh Varies by utility and season
Ohio 10.5-12.5¢/kWh Some utilities still regulated
Texas (ERCOT) 9.5-13¢/kWh Highly variable by region and time
Connecticut 12-14.5¢/kWh Updates quarterly
Illinois 11-13¢/kWh Regulatory benchmark

How Price to Compare Changes

The Price to Compare isn't static. It changes as the utility's costs change.

Why It Goes Up

  • Wholesale electricity price increases: When generation costs rise in wholesale markets, utilities pass through increases
  • Fuel costs: If coal, natural gas, or other fuels become more expensive, generation costs rise
  • Regulatory costs: New environmental requirements or infrastructure costs
  • Seasonal demand: Summer and winter demand peaks drive utilities to buy more expensive power

Why It Goes Down

  • Wholesale price declines: When energy markets are oversupplied or demand falls
  • Renewable energy growth: More wind/solar = less expensive power on wholesale market
  • Fuel price declines: When natural gas or coal prices drop
  • Off-season: Spring and fall demand drops, prices generally lower

Seasonal Pattern

Most PTCs follow a seasonal pattern:

  • Winter (Dec-Mar): Higher PTC (heating demand, cold-weather generation costs)
  • Spring (Apr-May): Falling PTC (moderate weather, less demand)
  • Summer (Jun-Aug): High PTC (cooling demand, peak generation costs)
  • Fall (Sep-Oct): Falling PTC (moderate weather, less demand)

Strategic insight: If you lock in a fixed rate, do it when PTC is high (winter/summer). If you want variable rates, lock in during off-season (spring/fall) when you can get better baseload pricing.

How to Use Price to Compare in Your Shopping Strategy

Step 1: Know Your Current PTC

Find it on your bill. If not visible, calculate it: Supply charge ÷ kWh

Step 2: Use Official Comparison Tools

In deregulated states, official shopping tools compare suppliers to your PTC:

  • Pennsylvania: PA Power Switch (papowerswitch.com)
  • Texas: PowerToChoose (powertochoose.org)
  • Ohio: PUCO comparison tools
  • Connecticut: CT PURA shopping portal
  • Illinois: LIHEAP supplier list

These tools automatically show how each supplier compares to your current PTC.

Step 3: Calculate Total Cost, Not Just Rate

When you find a rate lower than PTC, verify the total cost:

Total annual cost = (Usage × Rate) + (Base charge × 12) + Taxes + Riders

A competitor with 0.5¢/kWh lower rate but $10/month higher base charge might cost the same or more.

Step 4: Time Your Switch

The best time to switch is:

  • When PTC is high: More savings to capture (competitors want your business)
  • Before your contract expires: Don't let auto-renewal catch you
  • During off-peak seasons: If you want variable rates (lower baseline costs)
  • When you get your bill: Momentum helps—shop within 3 days of receiving bill

Key Takeaway

The Price to Compare is your baseline for rate shopping. It's the rate you pay if you do nothing. When shopping, find rates lower than your PTC, but verify total cost including all fees. Seasonal shopping strategy can unlock additional savings—shop when PTC is high.

Common Misconceptions

Misconception 1: "I Can Compare PTC to Any Supplier Rate"

Reality: You can only compare within your service territory. Your PTC applies to your specific utility's delivery area. A competitor's rate outside your area isn't relevant.

Misconception 2: "PTC is the Lowest Rate Available"

Reality: PTC is just the utility's rate. Competitors often offer rates 2-5¢ lower, and sometimes higher. PTC is the baseline, not a guarantee.

Misconception 3: "If I Match the PTC, There's No Difference"

Reality: A competitor matching your PTC rate might have different base charges, contract terms, or include/exclude specific riders. Always calculate total cost.

Next Steps