We all choose who provides our phone, internet, and television service based on rates and service. So why not choose the best energy company to provide you with electricity based on the same criteria?
Homeowners in many states are allowed to choose the energy companies that supply power to their home in order to take advantage or cheaper rates, improved service, or renewable energy sources that are friendlier to the environment.
Start by finding the website of your state’s energy commission, which will explain which energy companies you can choose between, if any. The contact information on these energy companies should be available there as well. Check to make sure the provider is licensed by the state utility commission.
Resources Used by Energy Companies
Inquire about the energy company’s energy sources, and whether or not they offer a choice for their customers. Some companies utilize partial or completely renewable energy, and are priced differently based on what the customer wants.
Some providers have an Electricity Facts Label that shows how the electricity is generated. It could come from coal, oil, natural gas, nuclear power, or something renewable like wind, solar, hydroelectric or geothermal energy. You could ask them for the exact percentage of electricity that comes from alternative energy sources. For example, Green Mountain Energy offers their customers a way to get electricity from 100% clean, renewable energy sources at a competitive rate.
Those who own homes or small businesses will sometimes choose to install a small solar panel or wind turbine to offset some of their monthly energy cost and reduce their carbon footprint. Certain states will subsidize or rebate the initial cost of purchasing a solar panel or wind turbine. Some states will even pay the owner of the device if it generates more energy than that customer uses.
Energy Company Distribution Methods
Regardless of the company you select to provide your electricity, your local transmission and distribution service provider will always deliver it. They’re the ones responsible for maintain and improving the power lines, wires, meters, and poles that bring the electricity to your home.
Therefore, you should choose the company that best fits your cost and service needs. Calculate the estimated monthly cost of service from each company. Use your current energy company to find your average kilowatt use per month and multiply that by each company's kilowatt per hour rate.