What Is "Price to Compare" and Why Does It Matter?
Learn what Price to Compare (PTC) means, how utilities calculate it, how often it changes, and how to use it as a benchmark when shopping for an energy supplier.
When you start comparing energy plans in a deregulated market, one number quietly does more work than any other: the Price to Compare. It shows up on utility bills, on state shopping websites, and in disclosure documents from suppliers. Understanding what it represents — and what it does not — is the single most useful skill when evaluating whether a competitive offer is actually a good deal.
## What "Price to Compare" Means
Price to Compare, often abbreviated PTC, is the default supply rate set by your local utility for customers who have not chosen a competitive supplier. It is expressed as a price per kilowatt-hour (kWh) for electricity, or per therm/ccf for natural gas, and it represents only the supply portion of your bill — not delivery, taxes, or fees.
The idea is simple: the utility already has to serve customers who never shop, so it publishes the rate those customers pay. Because delivery charges, taxes, and regulatory fees are the same regardless of who supplies your energy, the PTC is the apples-to-apples number you should hold up against a competitive supplier's offer.
Different states use different labels — Price to Compare, standard service rate, default service, provider of last resort rate, or basic generation service. The mechanics are the same across most deregulated markets.
## How the PTC Is Calculated
Utilities do not set the PTC based on what they want to charge. It is calculated from wholesale energy costs the utility incurs to serve default-service customers, plus a small set of approved adjustments reviewed by the state regulator. Typical inputs include:
- Wholesale energy prices from procurement auctions or long-term contracts - Capacity and transmission costs allocated to default-service load - Ancillary market charges - A reconciliation factor that trues up over- or under-collection from prior periods
Because the PTC reflects wholesale costs, it moves with the market. When natural gas or capacity prices rise, the PTC tends to rise at the next scheduled reset. When they fall, it eases back down.
## How Often the PTC Changes
The reset schedule depends on the state and utility. Some regions reset the PTC every six months, on fixed calendar dates. Others reset quarterly, annually, or on a rolling basis tied to procurement auctions. Between resets, the number is fixed and published on the utility's website and on your bill.
Suppliers, on the other hand, can offer fixed-rate plans that lock in a per-kWh price for a defined term — often 6, 12, 24, or 36 months. That difference in cadence is important: a supplier's rate stays put for the contract length, while the PTC continues to reset in the background.
## Using the PTC to Evaluate an Offer
When you compare a competitive plan against the PTC, keep three things in mind.
First, compare like to like. Both numbers should be supply-only rates in the same unit. Do not compare a plan's rate to a bill total or to a bundled utility rate that includes delivery.
Second, factor in the plan's full cost structure. A plan's headline per-kWh rate may be lower than the PTC, but if the plan also has a monthly base charge, a minimum usage fee, or usage-tier pricing, the effective cost at your actual usage level may be different. The plan's facts label lists every component.
Third, think about the contract term. Locking in a rate below today's PTC can be attractive if you expect wholesale prices to rise, but the value depends on where the PTC lands over the life of the contract — which no one can predict with certainty.
## Why the PTC Matters Even If You Never Switch
Even households that never shop should know their PTC. It is the rate you are already paying on default service, and reviewing it whenever it resets is a fast way to sanity-check your bill. If the PTC jumps significantly at a reset, that is also often when comparing competitive offers becomes worthwhile.
## FAQ
Ready to see how competitive offers stack up against your Price to Compare? Enter your ZIP code on 97 Options to review plans in your area side by side.
Frequently Asked Questions
What is Price to Compare?
It is the default supply rate your local utility charges customers who have not chosen a competitive supplier. It reflects only the supply portion of the bill — delivery, taxes, and fees are separate — so it is the fair number to compare against a competitive plan's rate.
How often does the Price to Compare change?
It depends on the state and utility. Some reset every six months, others quarterly, annually, or on a schedule tied to procurement auctions. Between resets the PTC is fixed and published on the utility's website and on your bill.
Does a lower rate than the PTC always mean savings?
Not automatically. A lower per-kWh rate helps, but the full cost also depends on base charges, minimum usage fees, and how the PTC moves during the contract term. Read the plan's facts label and compare the effective cost at your typical usage level.
Where can I find my current Price to Compare?
It is printed on your utility bill and published on the utility's website. In many states the public utility commission also maintains a shopping site that lists the current PTC alongside competitive offers.
Does switching to a competitive supplier change my delivery charges or bill format?
No. Your utility still delivers energy and sets delivery charges. Only the supply portion changes to reflect the plan you selected.