Here are some steps and information about Energy Choice PA
A few years ago the PUC deregulated the energy companies as we know them. This has been a blessing and a curse. Yes, there is more competition for lowering the cost of electricity delivered to the customer but it can be a curse in that if you are not careful, you will regret your change. Here are some things to consider when looking at your electric bill:
The cost of electricity is about $0.10 to $0.12 per kwh. However, the cost to compare on your bill is different, usually around $0.07 per kwh. Why is this? There are some fixed costs that cannot be negotiated, like the distribution. When you shop for electric you can choose who generates it, but the same electric company still delivers it ¬— that is the fixed cost. The part of the electric bill you are comparing is the cost of generation.
I have found that there are issues with this system. You need to be very proactive if you are going to change generators. Without due diligence, you may regret the switch. There are some things to know before you get started.
• Is it a rate you lock into? Meaning, is it a fixed rate or variable? I recommend a fixed rate plan. Variable rate plans can start low, then increase.
• Is it renewable? I like to support renewable energies. Also, is it from PA or outside of PA? The cost for renewable energy often comes at a slightly higher price.
• Is there a fixed service fee?
• What is the term of the rate? Four months? Six? !2? Is it indefinite?
• Introductory rate? Be wary of this. When it expires, the rates can skyrocket! This is why you need to be on top of your plan.
The pitfalls I have found are that customers don’t stay up on the fluctuating energy market. This is a dynamic system, much like the stock market. You need to be aware of the rates, or the variable rate and the introductory rate. The bottom line is, you think you are getting a great rate and saving money, but after the introductory period the rate skyrockets up to $0.26 per KWH! I have found customers suddenly have a $1000 electric bill due to the variable rate from the introductory period expiring. This is what you need to look for.
Be diligent and you can save a bunch. Watch for the term expiring, if you get a variable rate, and don’t be surprised if your costs change.
Below is the link to the PA PUC Energy Choice website. It is very self-explanatory and straightforward. If you switch your generators, you will want to bookmark the link so you can stay in touch with the plans as they change.