Best Electric Rates

Knowing whether you’re getting the best rate depends on your near and long-term goals.

Here’s what to keep in mind when figuring out whether you’re payment the best rate.

Cheap Rates - While some rates might be advertised as much cheaper than average, many of these rates may be introductory, and could change after only a short time. So if you’re careful about watching your rate each month, a cheap rate might work for you.

Rate Structure - Some suppliers offer usage bill credits if you use a certain amount of electricity (like 1,000 kWh), and these can help you save money and lower your monthly rate. This might be the best rate structure for you if you’re able to track your usage each month. Many suppliers offer online tools for tracking your monthly usage.

Long-term Fixed Rates - If you plan to be in your home for a long time, it might make sense to lock in a long-term fixed rate and avoid future price increases, even if the rate is higher than short-term rates. Some suppliers offer rates for 24 months, 36 months, or even 48 months!

Variable Rates - These rates can change from month to month. While the first month may be cheap, later months might be more expensive. The good news is that suppliers typically are not able to charge a cancellation fee if you decide to switch away. Depending on your state, switching to another supplier could take more than 1 billing cyle.

Utility Rates - Sometimes the utility’s price to compare can be lower than supplier rates. The utility rate typically changes multiple times a year, and if you decide to stay with the utility it’s a good idea to sign up for rate alerts, so you’ll be notified of any change.