Energy deregulation gave consumers power to choose who supplies electricity to their homes. The states that deregulated electricity allow the residents to select an energy provider who will be responsible for purchasing and transmitting electricity to their houses. The customers in these areas can choose from the wide array of available options, ranging from fixed-rate plans to renewable energy offers. The incumbent electric utility owns the power lines, and is responsible for delivering the electricity to the final destination. It is also responsible for addressing any power outages if they occur.
How to Compare Electricity Rates
Comparing electric rates is a multi-stage process. First you should research available plans from various electric companies. Not only you should compare the prices offered by the providers in your area, but you should consider the plan features too. Just think of the energy plan as a mortgage on your electricity. The longer the term is, the longer you can forget about the electricity supply rates. No matter whether they go up or down, you will still pay that fixed price until the contract expires. While, electricity prices demonstrate seasonality traits, as electricity prices tend to rise during summer and winter, and decline during fall and spring, they do so wildly. The rate boosts during high usage season could be as high as 30-40%, while declines could not be significant enough to offset these increases. Therefore, you can view fixed rate plans as an insurance against wild rises and declines in electricity, similarly to how you view fixed-rate mortgages against your home.
What to Look For in an Electricity Plan
There are multiple factors to consider when selecting an electric plan. The term of the contract, the price, renewable or tradition energy, supplier reputation are just a few of them. It will depend on your preference as there is no plan that fits all. Each factor has positives and negatives that should be considered carefully. While the term of the contract is the first thing one should consider, it is not all black and white. Intuitively, the longer the term the better, as you will enjoy the benefit of the fixed rate you chose for a longer period of time. However, if the electricity rates were to fall, you will be paying higher rate than the market. By switching to alternative supplier, you can also select a green energy product, something traditional utilities generally do not offer. While saving our planet is always desirable, it comes at a cost. Renewable electricity plans are, on average, 10-20% more expensive than conventional. Finally, doing independent research on supplier of your choice is always appropriate. We, at PowerSetter, only partner with the most reputable suppliers, but you should always perform your independent analysis.
How Much Money You Can Save
Let's face it we all want to save money if it does not require significant changes in our lifestyles. Unlike clothing, electricity is a commodity and will be the same no matter where you purchase it from. As such, the price you pay will directly affect your monthly savings without any need to cut on your spending. The actual dollar amount saved will depend on three factors: the price your utility charges for supply, the price you are going to switch into, and your average monthly electricity consumption. The bigger the difference between the utility and your plan price, or alternatively the higher your monthly energy usage, the larger savings you are going to accumulate. You can also view estimated savings when you research the plans available on our platform.
After you select the plan that fits your objectives, you are ready to switch. Select the plan of your choice, enter required information, and .... that's it! The whole process should not take more than 5-10 minutes of your time, and could generate savings of over 30% annually. The switch will be seamless and most likely will occur during your next billing cycle. If you are ready to learn more about the money-saving opportunities available, begin researching the available plans now!