How to Compare the Rates for Electric Companies

Compare electric rates and save.

Some states allow consumers to choose their electric company. Comparing their rates is key to finding the supplier with the best prices.

Things You'll Need

• Internet access
• Calculator
• Telephone

Instructions

1. For each electric company, find the price for 1 kilowatt of energy so you can compare on even terms. The price to compare can be found on company websites or through a phone call to the state utility commission. Ask the companies how long their prices are effective. For more realistic prices, ask the companies about their price per kilowatt hour of electricity based on 1,000 kilowatt hours of average monthly usage.

2. Ask the companies about their rates. Find out if their rates include everything, including the generation, transmission and distribution charges, fuel charges, and any other monthly fees. Break down the fees to accurately compare companies, some of which do not distribute the electricity that they generate.

3. Ask the companies if their rates are fixed or variable. Fixed rates remain the same for a specific duration of time for the term of the agreement. Variable rates can change by the hour, day or month, which can save consumers money if prices decrease but can also cost more if rates go up. If the price is variable, ask the company how prices can change and how they notify consumers of these changes.

Tips & Warnings

• Only choose suppliers with proper licensing.

References

• Power to Choose
• Pennsylvania PUC: PA Power Switch

Resources

• National Association of Regulatory Utility Commissioners