Cheap Electricity

Cheap electricity now doesn’t that just sound like a funny combination of two words. I know what you are thinking; that it isn’t even possible to have cheap electricity anymore. Gone are the days where a thirty five dollar electricity bill appeared in your mail box. Well not so fast there Sparky!

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Thanks to major improvement in efficiency and technology of heating and air conditioning systems over the past ten years we have been able to significantly reduce electricity costs. This is very exciting. Now by using the best contractors and getting the right advice you can start to see those cheap electricity bills again.

This isn’t the best part though. You see many states are starting to deregulate their cheap electricity companies and this has created competition do drive down prices. The technology option can cost thousands if not tens of thousands of dollars but taking advantage of energy deregulation can potentially cost nothing and you can start to realize the savings in days. Just think a lower bill and no mess.

Looking For Cheap Electricity

When you are looking for cheap electricity provided by your new cheap electricity provider what should you be looking for in your search? I think that the three major issues are as follows, price per kilowatt hour, contract term and the termination penalty. In my opinion, these are the major issues when selecting an electricity service provider.

The price per kilowatt seams to create confusion for people. It is really simple to use and everyday example. We all have the enjoyable experience of visiting our local gas station every week. Now when you look at the sign as you drive up to the gas station you see the big numbers indicating the price per gallon. If the price is a dollar per gallon (unrealistic thinking I know) and you use ten gallons your bill is ten dollars. The same logic applies to price per kilowatt. If you price is .096 kWh and you use 1,000 kWh your electric usage cost is ninety six dollars. Just remember that there are other charges in addition to the quoted price per kWh. These may include a delivery fee from the delivery company, state taxes or other miscellaneous expenses that your local government thought you should pay so you can have electricity.

 Cheap Electricity Contracts

The length of the contract term is also important. You make an agreement with the energy provider to pay the bill for so many months and they agree to supply you with cheap electricity for so many months. In my opinion you want to lock in the lowest rate you can for as long a term as you can. This way you have control.

This is where the termination fee comes in. Most contracts have some type of termination penalty. So let’s say you just got a smoking deal on cheap electricity and you lock it in for two years. Sometime in the twelfth month of your contract rates drop .015 per kWh. You normally use two thousand kWh a month and your termination fee is ninety dollars. Your monthly saving is thirty dollars and in three months you have paid off the termination fee. Why not take advantage of the new cheap electricity rates.

On the other hand if the price of electricity increases you have your cheap electricity rate locked in. So many people are afraid to sign up for long term contracts and they just don’t see what power they are giving up. I hope you understand and take advantage of long term contracts.

Like everything the devil is in the details and you will need to read your service contract very carefully. But if you follow these guidelines you will be able to capitalize on cheap electricity and reduce your electricity bill today!

If you found this article of interest you may also want to read our other articles on Texas electric rates and New York electricity. Thank you for reading about cheap electricity.

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