Unlike with long-term plans, monthly, variable rate (no-contract) plans have no cancellation fees. You won’t have to pay a penalty if you decide to take your business elsewhere because you found a better deal. Plus, you won’t be left paying more than you should if the market rate for energy trends down. However, if the market prices rise, you’ll have to pay more than those who are in-contract.
Utilities, or energy companies, in Maryland offer customers information to know how much they are spending on electric supply each month. Baltimore Gas & Electric Co., for example, provides a tool known as the Standard Offer Service, which shows customers how much they can expect to pay for energy supply each month. Current supply rates show that BGE customers will pay 8.225 cents per kilowatt hour (kWh). ChooseEnergy.com, as of mid-May, offers a 36-month plan that could save 13 percent on that rate now.
For example, shoppers for Texas electricity plans in the 77494 ZIP code in Katy, TX, could find 12-month plans for 6.8 cents/kWh in February; by June, electricity rates had increased 27 percent to 9.3 cents/kWh. As of early September, 12-month plans were up again, to 9.9 cents/kWh – a 6.5 percent hike from June and a 46 percent increase just since February.
It’s very important to do your own research to understand the business focus of the company you are considering, as well as tax advantages (and possible disadvantages) if the company is a limited partnership. For example, Seadrill Ltd. SDRL, -1.72% provides offshore-drilling services worldwide. Seadrill Partners LLC SDLP, -3.22% operates offshore-drilling rigs under specific contracts with several major oil companies, including Exxon Mobil Corp. XOM, +0.17% and Chevron Corp. CVX, -0.43%
Dallas area residents now have the option for choosing their electric provider. However, with all of the different plans that are available, it can be difficult to make the right decision for your particular electricity needs. You may find yourself overwhelmed by the number of options presented to you by all the electric company advertisements or concerned about shady marketing gimmicks.