Bethlehem PA Electric Service Without a Deposit

by admin on January 29, 2010

Recently, Bethlehem PA has deregulated the electricity market which means that consumers will have a choice in who provides their electricity. No longer can the provider you have been using monopolize the market. This means that smaller companies will now come in and compete for your business, allowing you to get electricity at cheaper rates.


If you choose to use a Bethlehem PA electricity supplier that offers cheaper rates, you may be required to pay a deposit. This is often the case when you have no established credit, or the credit you have is bad. Residential and commercial customers who do not have good or established credit may have to pay a deposit in order to get cheaper rates from one of the competing electric companies.

This means that many consumers may consider the pay as you go prepaid plans that are offered. While this sounds attractive, you should be aware of what it may involve. Some Bethlehem PA prepaid electricity providers may entice you with an offer to hook you up with electricity for a fee, for example $99. You may assume that this applies to your first months bill, but often it does not. Shortly after you sign up, you may be informed that you have to pay $200 to $500 or more in order to keep your electric service.

Even then, your monthly Bethlehem PA electric bill is not based on what you actually use. These companies often go by historical use, which could mean you end up paying based on someone else’s usage. If you did not live in your current place of residence a year ago, you will pay based on the electricity usage of whoever did live at that location.

Even if you must come up with a substantial amount for a deposit, choosing to go with a traditional Bethlehem PA electricity provider is a smart choice. Over the next year, you have the opportunity to build good credit and establish yourself as someone who makes timely payments. You may also get your deposit back. When another year rolls around and it is time to sign up for Pennsylvania electricity service again, most likely you will not be required to pay a deposit.


The state of Pennsylvania is allowing deregulation to be established so that energy becomes more affordable for residents and commercial consumers. The competitive electricity market is set up in such a way that the companies who have monopolized the market must keep their rates set at a static price. This allows smaller electricity providers to come in to Bethlehem PA to compete for your business without having to fear being priced out of the market by the monopoly companies.

Overall, this means that electric service in Bethlehem PA may become cheaper, and consumers may see exciting new terms that have never been seen before. Consumers will be able to choose between variable and fixed rate terms. Generally, you can choose a 1 year fixed rate all the way up to 5 years. Fixed rate simply means that for the duration of your contract, your Bethlehem PA electricity rates will not change.

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