How to Choose Electric Utility Companies

How to Choose Electric Utility Companies thumbnail
Not all electricity companies offer the same services or prices.

Homeowners living in some states, including Texas and Maryland, choose which electricity company supplies their power. Some homeowners in these states have no idea that this right exists, while homeowners in other states lack the ability to change electric utility companies. Homeowners may choose to change electric companies to receive a lower rate, to take advantage of more environmentally friendly energy production or after experiencing poor service. Choosing the best electricity company for your needs may allow you to spend less on utility bills. Does this Spark an idea?

Things You'll Need

  • Current electricity bill
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Instructions

    • 1

      Call your local city hall to find out if your area is participating in an electric choice program. Some counties still lack the diversity of electricity companies needed to offer a choice, even in states with an electric choice program, says the Maryland Attorney General's office.

    • 2

      Ask the state or country government office in charge of the electric choice program in your area for details. The program may only allow you to choose which company generates the electricity, but not which company delivers it to your home, according to the Michigan Public Service Commission.

    • 3

      Gather the contact information, rates and plan details for all of the electricity companies in your area. You can only make an informed choice by comparing all of the important information.

    • 4

      Ask each electric utility company if any start-up or transfer fees will apply if you choose its service. According to WattsNewCt.com, some companies may charge a large fee to new customers. If the company offers significantly lower rates on electricity, it may be worth the fee to switch.

    • 5

      Consider choosing an electricity provider who derives its power from more environmentally friendly sources. The experts at Pennsylvania Utility Choice explain that some companies may generate part of their electricity through renewable sources like wind or solar generators.

    • 6

      Calculate the estimated monthly cost of service from each company. Use your current electricity company to find your average kilowatt use per month and multiply that by each company's kilowatt per hour rate.

    • 7

      Choose the company that best fits your needs. Renewable energy sources may be worth a price increase for some homeowners, while others prefer the lowest monthly price available.

Tips & Warnings

  • Check with the Better Business Bureau for reports on the quality of customer service offered by each company. Companies with high complaint rates may lead to issues with bill payment or long power outages.

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References

  • Photo Credit electricity image by Mat Hayward from Fotolia.com

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