Residents of certain states are allowed to choose the utility company that supplies power to their home in order to take advantage or lower rates, better service, or sources that don’t negatively affect the environment.
Start by finding the website of your state’s utility commission, which will explain which utility companies you can choose between, if any. The contact information on these utility companies should be available there as well. Check to make sure the provider is licensed by the state utility commission.
Utility Company Monthly Rates
Price is usually the first concern when it comes to paying for energy. Some utility companies have an overall rate that includes everything, while others base their rate on categories of use. Before selecting a provider, ask if the rate includes generation, transmission, distribution charges, fuel charges or any other fees.
Check to see if the monthly rate is fixed or variable. Fixed rates remain the same for a specific term of agreement. But, utility companies that use variable rates will often change what they charge based on the time of day or month that the energy is used. This could work to your advantage or disadvantage depending on your habits or time of use. Make sure you ask about as many details regarding a variable rate as possible.
Utility Company Policies, Terms and Contracts
Depending on the utility companies provider, your credit may be a factor. Some utilities only provide service to customers with good credit, while denying service to those with an outstanding balance or bad payment history. In some cases they simply require customers with poor credit for a deposit.
If you are in the lower income bracket, are elderly, or disabled, than states often have programs that subsidize your monthly payment.
Utility companies differ greatly on their contracts. Some offer plans with no minimum contract period and monthly payments, while others offer contracts with specific terms. Companies with this policy often penalize customers for canceling early. Ask them about the terms of the contract.
Distribution Methods for Utility Companies
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 electricity company to find your average kilowatt use per month and multiply that by each company's kilowatt per hour rate.