- By ChooseEnergy.com
- In Blog
- Posted October 8, 2014
This is a guest post by our affiliate partner Choose Energy.
It used to be that when it came to utilities, there was only one or two companies that
monopolized power. You were stuck having to deal with companies that charged high prices
for their services and products.
Today, many states’ utilities have been deregulated, so you have the
power to choose which
company you want to service your home. If you live in one of
states where energy is deregulated, you may have the opportunity to save upwards
of 20% on your monthly electricity bill by switching energy providers.
Switching energy providers is new and still foreign to many, and can be confusing.
When selecting an energy provider, you should evaluate them based on the following four criteria:
Suppliers compete on price, and switching to a different supplier will mean that you
can pay less for the same exact electricity. There’s no difference in quality, and the
lights won’t flicker.
Another way suppliers vary is by the length of the plan. Because prices are always
fluctuating on the open market, you have the option to lock in a long term plan, or a
short term plan.
Long term plans are generally more conservative. For a longer time, you’ll be paying
the same amount, but means you could miss out on potential savings if the market prices drop.
Short term plans are more adventurous. This gives you more flexibility, and the opportunity
to shop for electricity more often. With a shorter term plan, you could be a position to
take advantage of lower rates, if the market price falls. Additionally, you might end up
with a slightly more expensive plan if the market rates jump up.
There are plenty of energy suppliers out there, and it can be hard to understand who’s
reputable and who’s not. By reviewing suppliers’ reputations, and shopping from reputable
locations, you can avoid paying too much from deceptive energy plans.
Renewable energy is calculated through Renewable Energy Certificates, or RECs, which
are purchased to match your energy usage. By choosing a 100% green plan, the supplier
will purchase as many of these certificates as needed to match your annual electricity
usage. By choosing a 25% renewable plan, then the supplier will purchase enough RECs
to cover 25% of your electricity usage.
These RECs fund renewable energy projects ensure that clean energy is going on the
grid. Likewise, because more clean energy is going on the grid, that means less coal
and nuclear energy is populating the electricity grid.
By choosing a green plan, you can help fund clean energy and help remove energy
sources with high carbon emissions.
For more information or for any additional questions, go to