How to Compare Utility Rates

Some states allow customers to shop for the best utility rates.

Paying utility bills is a necessity for most people, whether it is electricity, gas or some other form of energy. Most states regulate the cost of energy, but some states allow customers to compare rates and choose the best deal for their household. These states are: Delaware, the District of Columbia, Illinois, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Texas.

Instructions

1. Determine the price per kilowatt hour for electric service and price for hundred cubic feet for gas service. These are basic units of measurement for energy and allows customers to compare prices from a variety of companies.

2. Determine how each company charges for related costs. The best-case scenario is a rate that is all-inclusive. Some companies charge separately for the cost of generating electricity, transmission and distribution charges, fuel costs, sales tax and monthly customer fees.

3. Ask about automatic customer service fees or price increases/decreases. Utility companies sometimes have automatic charges if a customer uses a certain amount of electricity or gas.

4. Determine if the rates are fixed or change from month to month. If the rate is fixed, find out if it is set to change at a specific time and whether the current fixed rate is guaranteed for a certain period of time. If the rate varies, find out what factors influence it: usage, time of day, time of year, etc.

5. Ask if more than one rate plan is offered. If so, get specifics on the differences between plans.

References

• Compare Texas Electricity Rates

Resources

• Texas Electric Choice
• Shopping for Electricity