Pittsburgh-based Direct Energy announced this morning that it will enter PPL’s service territory on January 1, 2010, offering markedly lower rates for residential customers.

When the current rate caps on PPL expire next year, residential customers are expected to see a 30% jump in their rates.  Direct Energy announced today that it is offering a 12-month discounted program with a 9-month step down, saving customers 15% off of PPL’s default rate.  In addition to the 12 month plan, Direct is also offering a 36-month fixed rate plan, as well as a 12 month “green” offering, where the supplier will purchase renewable energy products.

The debate in Harrisburg as to whether or not to extend rate caps on providers has essentially swirled around the question of whether or not there would be any competition to help offset expected rate increases.  Today’s announcement seems to answer that question in the affirmative, with Direct Energy becoming the third – and largest – supplier that has announced intentions to compete in the deregulated market.  Direct currently serves 5 million customers across 21 states.

With the price of nearly everything on the rise, today’s announcement is some welcomed good news for electric utility customers in the mid-state and beyond.  You can check it out here: http://directenergy.com/EN/Pennsylvania/Pages/Landing-Page/home.aspx