Don’t be fooled by electricity rate gimmicks.
Power companies can advertise what appear to be great rates, but may end up costing you far more than you’d expect if you’re not careful. Most of the rates on powertochoose.org that advertise between 3 and 5 cents are applying credits when you’ve reached specific usage (kWh) levels. If you don’t qualify consistently for those credits, the rates will result in significantly higher costs. The “free nights, etc.” offers charge you so much more during the times you are paying (14 cents/kWh or more), you’ll end up paying hundreds of dollars more annually. And many companies will quote only their portion of the charges, conveniently leaving CenterPoint’s charges out of the conversation.
Even when companies do include CenterPoint’s charges in their advertised rates, when those charges are listed in their entirety as a separate line item, you will be charged for all changes to CenterPoint’s rate. CenterPoint’s charges change regularly and as you might expect, increase far more often than decrease.
Rates that protect you from those increases add more cost savings over the term of the contract.
The Public Utility Commission requires every retail electric provider to provide their average rate when exactly 500, 1,000, and 2,000 kWh are consumed. Average rates can look awesome, but they are not what is applied to your monthly electricity usage. Lantern uses the actual rates listed in each offer’s Electricity Facts Label (EFL) and your previous 12 months of usage to calculate the monthly cost and determine the lowest overall cost for you. We do many of these analyses daily, for homes of all sizes, from tiny apartments to homes of 4,000 sq ft or more. We are currently recommending a great 36 month rate to the majority of homeowners that contact us, even if there is a shorter term rate that costs a little less. Why? Because it is very likely that rates available at the end of the 3, 6 or 12 month will be significantly higher than the 36 month rate is now. Combine that with protection from the majority of CenterPoint’s increases over the 3 year period and it becomes a no-brainer.
Today, a rate that is advertised at 3.3 cents/kWh may end up costing you 10.6 or more. The only way to know for sure is to do the math. Lantern does that for you, and shows you in our free report that includes the spreadsheet. Contact us today, even if you are under contract for a while, and we will put you on our calendar to follow up at the right time!