Illustrative Case: Philadelphia-Area Dispensary Leaves PECO Default for a Fixed EGS Rate

The facility and starting situation

Assume a single-location medical dispensary in Montgomery County on a PECO account in PJM [pa-puc-retail-markets]. The store is a 4,800-square-foot leased retail suite in a suburban strip center. Pennsylvania dispensary permits allow up to three locations per permit [pa-doh-dispensaries]; this operator runs one room with a secure vestibule, display cases, two consult rooms, and a vault.

The load stack is typical retail cannabis: LED display and track lighting, HVAC sized for humid southeastern Pennsylvania summers, 24-hour security and cameras, and two reach-in refrigerators. Statewide normals are 5,701 heating degree days and 706 cooling degree days, with Philadelphia-area dew points in the upper 60s and low 70s F from June through August [noaa-cag-pennsylvania]. The rooftop unit runs hard from late June through September.

The account sits on PECO Rate GS, general service at secondary voltage [peco-rates-tariffs]. Peak demand reads 42 kW in July interval data, well below the threshold where PECO moves a customer to hourly default generation. At opening the operator signed the lease, opened the store, and never reviewed the supply line. Default generation rolled through two Price to Compare resets without anyone comparing the published benchmark to market offers [pa-puc-retail-markets].

What the baseline bills showed

The table uses assumed usage as an input; tariff structures are cited.

Line item	Assumption or rate	Monthly (summer)	Monthly (winter)	Notes
Floor area	4,800 sq ft
Peak demand	42 kW (assumed)	42 kW	38 kW	Rate GS
Usage	12,800 kWh	12,800 kWh	10,200 kWh	Assumed
PECO delivery	GS per-kWh and demand components [peco-rates-tariffs]	~$420	~$380	Confirm on bill
Default generation + transmission	Modeled 10.8 cents per kWh	~$1,382	~$1,102	Includes reset swings
Modeled total		~$1,802	~$1,482	Excludes taxes

Annualized: roughly 141,000 kWh and about $19,500 a year at the modeled all-in rate. That aligns with the EIA June 2026 Pennsylvania commercial average of 13.33 cents per kWh applied to the same usage, about $18,800 [eia-epm-5-6-a]. The US commercial average was 14.19 cents in the same period [eia-epm-5-6-a], so Pennsylvania was slightly below national on a blended basis.

PECO's Generation Supply Adjustment resets June 1 and December 1 under Act 129 default-service procurement rules [pa-puc-retail-markets]. The operator noticed a $140 jump on the December bill and a $95 drop in June but did not trace either move to the PTC reset. No one compared the bill to PAPowerSwitch offers [pa-papowerswitch].

What changed

The operator ran a structured procurement in March 2026, before the first full summer at the location.

Benchmark against Price to Compare. The CFO pulled the published PTC for the GS rate class and compared it to three fixed offers from PUC-licensed Electric Generation Suppliers listed on PAPowerSwitch [pa-papowerswitch]. Pennsylvania grants full commercial choice to all PECO customers [pa-puc-retail-markets].

Fixed EGS contract. The winning bid was a 24-month fixed generation price at 9.7 cents per kWh for energy, with capacity and transmission structured as a fixed adder of 1.0 cent, for 10.7 cents all-in on supply-side lines. PECO continued to bill delivery on a consolidated statement.

LED retrofit before peak creep. Display lighting ran older fixtures at high watt density. PECO's Act 129 Phase V business efficiency program covers LED lighting and controls for non-residential customers [peco-biz-savings]. A prescriptive rebate on 24 canopy fixtures cut an assumed 6 kW and kept peak demand below 50 kW through the first summer.

Lease audit on meter ownership. The strip center landlord confirmed the dispensary owns its sub-panel and meter. Shared load with a neighboring salon was already on a separate account, avoiding a billing dispute at enrollment.

The Pennsylvania switching guide covers enrollment mechanics. The fixed vs. index vs. block-and-index page explains why this operator rejected index offers.

The math after

Compare the modeled default path to the fixed EGS contract over 141,000 kWh a year.

Component	Before (annual)	After (annual)	Notes
PECO delivery	~$4,900	~$4,900	Unchanged
Default generation + transmission	~$15,200 at 10.8 cents		Includes reset noise
Fixed EGS supply + transmission		~$15,100 at 10.7 cents	24-month term
Modeled supply-side total	~$15,200	~$15,100
Modeled all-in	~$19,500	~$18,400	~$1,100/year

On a cents-per-kWh basis, 1.1 cents on 141,000 kWh is about $1,550 a year in supply-side savings. The LED work trimmed another $400 a year in kWh at the same contract rate.

Delivery stayed flat because PECO still bills distribution on Rate GS regardless of supplier [peco-rates-tariffs]. For a dispensary, procurement focuses on supply stability and on not drifting toward demand-metered classes with higher per-kW charges, not on interval scheduling.

The operator also gained budget certainty. A fixed number for two years simplified monthly reporting to the permit holder. Default supply would have reset again on June 1 and December 1 [pa-puc-retail-markets].

What did not work

A six-month index pilot. Before the fixed contract, the operator tried a monthly index price for one quarter. When PJM day-ahead prices spiked during a July heat wave, the index bill beat default by only $28 and spooked the store manager. The pilot was not renewed.

Community solar subscription. A broker pitched a remote solar credit. The landlord declined credit-assignment paperwork on the lease, and the operator could not assign bill credits without landlord consent.

Delaying the LED retrofit. Supply savings did not fix display lighting that ran 18 hours a day at 90 watts per fixture. Efficiency and supply moved on separate timelines.

Ignoring the December PTC reset. The operator treated the December bill spike as a usage problem until interval data showed flat kWh and a higher generation rate line. Reading the PTC reset calendar would have flagged the move earlier [pa-puc-retail-markets].

Act 129 Phase V efficiency overlap

PECO business efficiency measures can run parallel to supplier switch enrollment. Prescriptive LED rebates require pre-approval before purchase [peco-biz-savings]. Supply contract start and rebate reservation expiration should both appear on the project calendar.

PTC reset calendar on Rate GS

PECO Generation Supply Adjustment resets June 1 and December 1 [pa-puc-retail-markets]. Small dispensaries on Rate GS still benefit from fixing supply before summer cooling kWh rises even when demand kW stays modest. LED prescriptive rebates reduce kWh before the first full summer at a new location [peco-biz-savings].

PAPowerSwitch documentation for the file

Save the PTC screenshot and winning EGS quote in the same compliance folder as the cannabis license renewal packet. Future operators inherit supply contract end dates [pa-papowerswitch] [pa-puc-retail-markets].

Index pilot lesson documented

The six-month index trial showed $28 savings versus default in one quarter in this model, insufficient for manager comfort. Fixed contract simplified AP and board reporting [pa-puc-retail-markets].

PECO GS demand threshold watch

Rate GS applies demand charges when billing demand exceeds tariff minimums [peco-rates-tariffs]. This store stayed near 42 kW peak. Monitor interval data after LED retrofit and refrigeration adds so peak does not cross into higher demand tiers unintentionally [peco-biz-savings].

PTC reset training for store managers

PECO Generation Supply Adjustment resets June 1 and December 1 [pa-puc-retail-markets]. After fixed EGS enrollment, store managers should watch delivery lines, not generation rate spikes from default resets they no longer pay.

Act 129 LED timing with EGS start

PECO prescriptive LED rebates require pre-approval before install [peco-biz-savings]. Sequence rebate reservation before EGS enrollment if both happen in the same month so AP can match rebate deposit timing to fixture vendor invoices.

Strip center landlord consent for LED

Landlord consent for canopy LED retrofits should be in writing before PECO prescriptive pre-approval; lease silence is not approval [peco-biz-savings].

Strip center landlord consent for LED

Landlord consent for canopy LED retrofits should be in writing before PECO prescriptive pre-approval; lease silence is not approval [peco-biz-savings].

PAPowerSwitch screenshot in vendor file

Store a dated PAPowerSwitch Price to Compare screenshot with the executed EGS contract so future managers know which benchmark justified the switch [pa-papowerswitch] [pa-puc-retail-markets].

Lessons that transfer to other Pennsylvania dispensary operators

Treat PECO's Price to Compare as a benchmark, not a contract offer [pa-puc-retail-markets]. Compare all-in supply, not the postcard kWh rate. Pennsylvania grants full commercial choice on PECO [pa-papowerswitch]. Watch peak demand on Rate GS; per-kW distribution demand applies on billing demand even for storefronts [peco-rates-tariffs]. Claim PECO LED incentives before you buy fixtures [peco-biz-savings]. Sign a fixed price before your first full summer so pro formas use a known supply number. See the dispensary retail energy page and the FAQ on supplier choice.