Comparing Electric Companies – Which One is Right for You?

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In states with deregulated energy markets, consumers can choose their electric suppliers. This is also known as “energy choice.”

When choosing between electric companies, it’s essential to consider its rates and plans. We will highlight some key factors to look for, including the length of contracts, variable rates, and free nights or weekends.

Compare Rates

Many homeowners focus on keeping utility rates low and are familiar with the monthly fees associated with their internet service and water bill. However, things need to be clarified regarding their electricity bill.

As the retail energy market continues to evolve, more consumers are shopping around for a better rate on their home power supply. While it’s easy to be overwhelmed by the various supplier websites, rate aggregation sites, and brokers pitching their deals, some simple steps can help make the process much more straightforward.

Start by looking at your current bill. Take note of the electricity supply charges on your statement, expressed as cents per kilowatt-hour. This is the portion of your account you have control over and is the amount you’ll be able to compare when choosing an electricity company.

Consider any introductory or promotional offers when evaluating an electricity provider’s rate. If you choose a plan offering variable speeds, your bill will fluctuate monthly, depending on energy demand. Be especially wary of programs that offer rates that change based on “market conditions,” supplier discretion,” or other vague terms and conditions.

Utility companies tend to increase their rates when they can, which makes it all the more important to keep an eye on your price to compare and shop for the best deal possible. Taking the time to find the right electricity supplier can mean significant savings on your energy bill.

Compare Customer Service

When comparing electricity companies, it’s essential to consider customer service. After all, your energy company will be responsible for restoring your power during a power outage and providing customer support. You can learn more about your potential provider by looking at their reputation and asking if they have good customer service. In addition, it is essential to check if the company you are considering is licensed by your local utility commission to offer energy services in your area. 

Compare Offers

Customers can choose a provider for their energy supply in deregulated electricity markets. Electric companies in Midland, TX, offer a variety of deals that are often cheaper than utility rates and can cater to specific needs such as green/renewable power or term lengths. However, it’s important to remember that the utility company still delivers your electricity and manages the power delivery through its infrastructure. Utility fees are not subject to the same competitive pressures as supplier charges and can only be changed by your utility’s regulator. The best way to find the right offer is by looking at your current costs. Specifically, look at the “electric supply charges” shown on your bill in cents per kilowatt-hour. This is the only portion of your account you control, and it is where the most significant savings can be found.

To see current offers in your market, enter your zip code in our unaffiliated marketplace today. You can also browse rates, plan types, term lengths, and green options. Just be sure to check for any contract or early termination fees that may cancel out the savings you could get from a cheaper rate. Then, you can rest assured that you’ll be on the path to saving money.

Plans

As you shop for an electricity provider, consider the rate plans they offer. These include fixed-rate and variable-rate plans. Fixed-rate plans lock in a rate for the length of your contract, protecting you against energy price spikes. Variable-rate plans, on the other hand, fluctuate based on market conditions. They are also susceptible to seasonal price fluctuations.

Look for enticing incentives when comparing plan options. These can be anything from a guaranteed satisfaction period to loyalty rewards for staying with the company once your contract is completed. Be sure to review contract terms carefully, too. You should also check for any early termination fees or other add-on charges, which can offset the savings of a cheaper rate.

In addition to the type of rate plan, you should also consider any other features that may make a specific provider more appealing than another. For example, some providers offer no-deposit programs, eliminating the need for a credit check to start service. Others have no-contract plans, allowing consumers to cancel without incurring cancellation fees.

Electricity deregulation has ushered in a new age of choice for residential customers. Not only are traditional utilities competing for your business, but you can now shop the competitive supplier marketplace, where ESCOs (Energy Service Companies) offer more personalized deals that weren’t available before deregulation.

Remember, though, that your electric utility still delivers your power while a provider supplies the actual energy you use. This is similar to how a post office has a package while a store provides the goods.

Consider your energy usage to determine which plan option is right for you. You can estimate your usage by reviewing the last 12 months of your utility bills or using an online kWh calculator. Once you’ve calculated your usage, you can compare the rates different providers offer to find the best deal. Be sure to consider any additional fees, like monthly service fees or renewable energy surcharges, when calculating the total cost of a plan.

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