A Penny Saved is a Penny Earned

A Penny Saved is a Penny Earned -
Benjamin Franklin

Wednesday, January 7, 2015

Cutting Electricity Costs

After doing some research on energy providers for the Dallas/Fort Worth area, I found Champion Energy to be the best value (read more below on how to compare providers). By the way, to save money on your first bill if you use my referral code we both get $25 off our bill (make sure they are still offering this).
Referral Code: asummerville16923

Energy Deregulation swept into Texas, after much debate, when Senate Bill SB7 passed in 2002 giving Texans the power to choose www.powertochoose.org. Along with the energy tidal wave came small companies who, unprepared, quickly became bankrupt. Few utility companies were able to compete with the sustainability of Texas giant TXU. The contracts, advertising and constant changes, which even TXU began to offer, left Texans bewildered and confused.

Now the dust has settled somewhat with few major competitors in the race for the lion’s share of energy customers, we are able to take a look at what each of these companies is offering. Lower rates and exceptional service sound good, but are the rates really as low as advertised? Are we comparing apples to oranges? The contracts leave even the most savvy person staring myopically at the small print. Which energy company has the best to offer?

Contracts
There is no such thing as a standard contract. Make sure it will work for you. For instance if you are planning on moving to another state in the next six months, then don’t sign a one year contract which may include a termination fee that could be as high as $250. To compare contracts for a few of the energy providers take a look at www.choosenergy.com.

Pricing
Compare your current electricity bill with the new provider contract. There may be additional charges for: ancillary service, administrative fees, broker/consultant fee or commission, that you are not currently paying for.

Advance Meter
Meters are gradually being replaced by digital smart meters eliminating the need for meter readers. Whichever company you are using, this will probably be on the bill. The current charge appears to be $2.19 per month.

Delivery Rate Change
This may show as TDU Surcharges (Transmission and Distribution Utility) or the actual delivery company such as Oncor. This rate may go up or down each month.

Base Charge
Base rate charged by each company. This varies and is usually around $4 - $10.

Energy Charge
The charge for kilowatts (kWh) per hour. This is another area that you will want to check on your contract. The amount per kWh hour usually depends upon usage in increments of 500. If you use 1,000 kilowatts per month, your rate may be lower than if you accumulate 500 per month. Look at previous bills to get an idea of what your normal usage is. This rate could be fixed or variable.

Incentives
Some companies are offering incentives for signing up. For instance reduction in bills for referrals.

Renewable Energy
Sometimes called green energy, renewable energy is produced by wind, water or sun (solar).



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