In 1996, utility companies and state officials formed a partnership to eliminate competition to allow providers an opportunity to recoup infrastructure investment costs, with a goal of moving to a free market.

"What it is doing is giving consumers an opportunity to competitively shop for the distribution piece, the power generation piece, and that's three-quarters of the bill,” said Public Utility Commissioner John Coleman.

Despite early speculation of utility bills doubling or tripling when the rate caps expire, Coleman told WJAC-TV that the sluggish economy and booming Marcellus Shale natural gas drilling industry in the northern Alleghenies is keeping utility prices relatively low.

“Penelec and Allegheny customers are facing a little better than others across the state,” said Coleman.

"The demand for electricity is down, so they've been able to get some very good prices,” said Centre County Commissioner Jon Eich. “If we were in a roaring economy, then we might see a much larger jump and we may see a significant increase once the economy recovers."

Despite the promise of options for new electricity providers, Coleman told WJAC-TV that there are fewer new residential providers than anticipated.

“In the instance of Allegheny Power and Penelec, there are over 60 companies that are now positioned to competitively compete for that part piece of the generation,” said Coleman. "In the residential marketplace, there are few, but I would expect as we get closer to a January one date, that we will see more and more of these companies that will be offering a competitive generation piece to consumers."

Although some customers are discovering lower prices when grouping with an apartment complex or community, Coleman says people shouldn’t feel pressured.

"There are those that are looking to pull together bundles of companies or residences that will allow them to have a better buying power and command a better price,” said Coleman. “You can do this individually, as well; you don't need to go through an aggregator."

Philipsburg is one of dozens of communities marketing themselves for a new electric provider; borough manager Jan McDonald told WJAC-TV that recent offers are only a few cents cheaper per kilowatt-hour.

“We’ve been approached by a number of companies. We haven’t selected anyone yet, but some of our neighbors have,” said McDonald. “If the borough can come up with a plan on a utility, that's going to offer something that is good or better than what we were doing and that protects us, then we will offer that to the community."

Coleman urges consumers to read fine print carefully before choosing and signing with a new electric provider.

“There are some that are longer-term contracts, some of them are variable term and some of them have cancellation fees associated with them,” said Coleman. “It's just like shopping for any other commodity."

To check residential electric providers available where you live and compare prices, CLICK HERE.