Electric bills

[pontifex]

Question for those of you who can change your electricity supplier.

I'm in PA and we can use PP&L who owns/maintains the lines and equipment as the supplier, or we can choose another one to possibly get a better rate.

I have been doing like 1 or 2 year fixed rate contracts with other suppliers to get lower rates. I have not had any issues with this, although after the contract is up they will move you to a monthly variable rate unless you choose another fixed rate plan, which is in past experience is usually a bit higher than your initial plan.

My current contract is up next month and looking to either switch or keep the one I have. Now the one I have is offering me a slightly lower rate for a 20 month plan (with a early cancellation fee) or a variable rate month to month plan (not much lower than the fixed rate plan.).

So wondering how you guys handle this to keep costs low?
I tend to stay away from the variable rate plans because you never know what the price will be. Could be lower which is good, but could be higher, which is bad. But then again, since I can change, it might not be too bad. I just have to keep up with it month to month, so extra work for me.

With sticking to the fixed rate plans, you stay at the rate for the time period, no surprises, but then you also end up paying more if prices drop.

Some fixed rate plans go for 3 months, 6 months, 1 year, 2 years.

just looking at suppliers now and the lowest variable rate plan is
$0.0489 per kWh

The lowest fixed rate plan is $0.0499 per kWh for 3 months.
The next longest term with lowest fixed rate price is 6 months at $0.0545 per kWh.
The lowest 1 year fixed rate plan is $0.0655 per kWh (this is the company I am currently using so this must be for new customers only?)

 

[deadlyapp]

If you know what the primary generation is for each of the utilities companies, you can get a good feel for what is going to happen to the price over time. Right now we're pretty much at the bottom of energy costs, no matter what generation method they use, but if they're primarily natural gas you'll probably see pretty low numbers for the next year or two until oil starts to rebound (forecast for 2017-2018 last I saw). Nuclear will probably go up, especially if the plants are aging as they need to recertify at some point.

 

[lxskllr]

I don't change suppliers. I use the people who set the lines in the first place, and don't worry about it. I don't feel like dealing with paperwork, and analyzing all the ways companies are trying to screw me, to save a small amount of money. It would be different if I were using energy that got trucked to my house.

 

[rcpratt]

I agree that we're probably at the bottom right now, but those are pretty significant premiums to lock in the fixed rate (+30% for the 1yr?).

Personally, I don't think those terms are long enough to really protect you against the projected upswing in prices. Natural gas is hovering around $2 right now, and with this el nino winter and record storage levels, I really don't see that changing until next winter at the earliest.

I'd take the variable rate based on the numbers you provided.

 

[pontifex]

I agree that we're probably at the bottom right now, but those are pretty significant premiums to lock in the fixed rate (+30% for the 1yr?).

Personally, I don't think those terms are long enough to really protect you against the projected upswing in prices. Natural gas is hovering around $2 right now, and with this el nino winter and record storage levels, I really don't see that changing until next winter at the earliest.

I'd take the variable rate based on the numbers you provided.

so you don't think the variable rates will go up higher or much higher?
I'm worried that the 1st month it will be $0.0489 per kWh but then the next month it will be like double that or something.





actually, i just noticed that those really low priced variable rates are introductory rates.

the lowest variable rate that isn't introductory is $0.0700 per kWh
staying with my current company at the 20 month fixed rate is $0.0710 per kWh which isn't much more than the variable rate!

 

[rcpratt]

I can't believe they let them offer introductory rates and other bullshit like that. If you can just keep skipping from supplier to supplier and play that game, maybe you can save a few bucks. Sounds obnoxious.

If the cost increase is $0.001/kWh for the fixed rate, I'd take that. More price upside than downside overall, probably.

 

[RaistlinZ]

I live in Northern VA. Even if I could change my power supplier I probably wouldn't. My current supplier keeps power running smoothly.

After really bad storms I'm always hearing on the news of thousands of people without power, while mine always stays on.

Dependability > saving a few bucks.

 

[Red Squirrel]

Just think, these companies have to pay the electric company whatever the price is, and still have to make money. So somehow in the end it will end up being more expensive. They usually have some sort of fine print in there where you end up paying more at some point in time.

 

[Slew Foot]

dang, here in CA PG&E charges 30 cents a kwh last i checked. i got solar panels so i dont care anymore.

 

[rcpratt]

I live in Northern VA. Even if I could change my power supplier I probably wouldn't. My current supplier keeps power running smoothly.

After really bad storms I'm always hearing on the news of thousands of people without power, while mine always stays on.

Dependability > saving a few bucks.

I don't think you can choose your distribution company. They aren't coming out and hanging you new wires.

 

[pontifex]

I don't think you can choose your distribution company. They aren't coming out and hanging you new wires.

Right. Like pp&l owns and maintains all power lines and equipment i PA or at least where i live. Its just the power supplier you can change.