Frequently get these offers (for current Penelec customers) but I don't believe they usually give a current comparison rate like the one we received today. It's from Constellation, an Exelon Co. A fixed rate of 6.29¢/kWh for 36 months, which is 7% lower than the current Penelec rate, plus a $100 gift card. Opinions appreciated!
Opinion on changing electric supplier please!
- Thread starter emrtmakesshiteup
- Start date
I have switched suppliers multiple times and never been disappointed. I am not familiar with your particular supplier, but if you do your homework it can really pay off.
I have never switched suppliers and have never been disappointed. For me, the headaches caused by trying to figure out the different terms & conditions is far from worth the few dollars I'd save per month. When signing long term (36mo) contracts, be careful to look for early termination fees.
I'm in Ohio so our Direct Marketers system may vary some from yours, but the key things in contracts here I look for are:
early termination fees, contract renewal terms. The ETF's are usually straight forward. Contract renewal can be a bit trickier. Be aware of the notice of renewal and your responsibility. We have one company that states that you have 5 days from the date of the renewal notice to respond IN WRITING or you are committed. That is total BS. Also BEWARE of variable rates. Had a friend in PA who let the contract roll from fixed to variable and they were severely gouged. The variable rate computation is usually one where you have no idea what it is based on as it is a function of whatever they deem the rate to be.
You are looking at 36 months so it's not an issue but I'd advise anyone to avoid very attractive come on rates for just a few months that reverts to a variable rate. The companies here are banking on a large number of people overlooking the renewal, just as my friend in PA did.
As to your offer, the rate you indicate you received is about half a penny a KWH better. If you use 1000kwh a month then that saves you $5 a month. So you're ahead every month until the Penelec rate is (if ever over the course of the 36 months) under yours. You have the $100 as bank plus your savings. If the reverse is true, that is their rate is a half a penny under yours, then you have 20 months covered, or more depending on how much you saved before that happened.
BTW I just signed a 41 month fixed rate in OHIO for 5.3¢ vs the current utility rate of 5.9¢, but no gift card.
Edit: P.S. in Ohio if you move and stay within the supply market the contract moves with you. If you move outside of the supply market then the contract is terminated without a fee to you.
early termination fees, contract renewal terms. The ETF's are usually straight forward. Contract renewal can be a bit trickier. Be aware of the notice of renewal and your responsibility. We have one company that states that you have 5 days from the date of the renewal notice to respond IN WRITING or you are committed. That is total BS. Also BEWARE of variable rates. Had a friend in PA who let the contract roll from fixed to variable and they were severely gouged. The variable rate computation is usually one where you have no idea what it is based on as it is a function of whatever they deem the rate to be.
You are looking at 36 months so it's not an issue but I'd advise anyone to avoid very attractive come on rates for just a few months that reverts to a variable rate. The companies here are banking on a large number of people overlooking the renewal, just as my friend in PA did.
As to your offer, the rate you indicate you received is about half a penny a KWH better. If you use 1000kwh a month then that saves you $5 a month. So you're ahead every month until the Penelec rate is (if ever over the course of the 36 months) under yours. You have the $100 as bank plus your savings. If the reverse is true, that is their rate is a half a penny under yours, then you have 20 months covered, or more depending on how much you saved before that happened.
BTW I just signed a 41 month fixed rate in OHIO for 5.3¢ vs the current utility rate of 5.9¢, but no gift card.
Edit: P.S. in Ohio if you move and stay within the supply market the contract moves with you. If you move outside of the supply market then the contract is terminated without a fee to you.
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As a rebuttal, the 1st time I did it I spent about an hour. Each succeeding time it became easier. The last time I spent about 10 minutes and saved $120.00 over the course of a year. If I can make $120.00 in 10 minutes that is an hourly rate of $720.00 and that far exceeds my hourly rate as a lawyer.
I will add that I don't need to spend hours trying to find the best deal in the market. I just need to find a reasonable saving over what I have.
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I switched several years ago for a one year period, comparable rates and 10,000 airline miles. No problem switching or switching back.
I’ve taken advantage of ComEd’s various offers here in Chicagoland:
1) I’m on the actual rate pricing instead of flat rate pricing, have saved over $400 over the last five years. Over time one learns not to run the washer / drier / dishwasher / air conditioner in prime time. Every bill breaks out how much I’ve saved (or occasionally lost) that month.
2) I get a $10 credit each month for the four summer months by giving ComEd the right to power off my air conditioner for an hour if needed at peak times. I get that credit whether they power me down or not. It generally happens a few times a summer but I’ve never even been aware of when it actually happens. An easy $40!
I’ve taken advantage of ComEd’s various offers here in Chicagoland:
1) I’m on the actual rate pricing instead of flat rate pricing, have saved over $400 over the last five years. Over time one learns not to run the washer / drier / dishwasher / air conditioner in prime time. Every bill breaks out how much I’ve saved (or occasionally lost) that month.
2) I get a $10 credit each month for the four summer months by giving ComEd the right to power off my air conditioner for an hour if needed at peak times. I get that credit whether they power me down or not. It generally happens a few times a summer but I’ve never even been aware of when it actually happens. An easy $40!
Constellation is good... used to be Baltimore Gas and Electric. I am a stockholder
I switched about 3 times in the last year and have saved about $400. I have total electric and live in PA. I have PPL and find it very easy. They have a list of suppliers on their web site. As stated, do NOT take a variable rate and I never take one with a early termination fee.
I’m intrigued by how individuals earn and spend their money. You refused to spend $40 to have the Comcast technician hook-up all of the cable connections in your house, but yet you won’t shop electricity rates.
kWh’s add up....it’s amazing how much one can save by shopping and changing retail electricity providers.
It's amazing how much time can be wasted, too. There are far more ways to save money than $10/month with an electricity provider.
And yes, I refuse to pay Comcast because their technician who activated service the first time took the lazy way out by activating only1 of 8 cable outlets.
http://www.papowerswitch.com should be all you need. It's absolutely effortless to find the best deal for you and switch. This site shows your rate to compare plus all details of suppliers offers (terms, fees, rate type, etc). Most suppliers let you sign up online also. There will be a link from the power switch site.
When I sign up, I make a note on my Google calendar about a month before my fixed rate expires so that I can shop for a new supplier. This whole process is seamless and literally takes no time at all. I've saved $20-$25 per month since I started.
There is also a site for gas, but I haven't found many deals for my area as of yet. I think because gas is already so cheap.
The most important piece of advice is to avoid variable rates at all costs. Even if you sign up for anfixed rate plan, it will revert to variable once your term is up.
When I sign up, I make a note on my Google calendar about a month before my fixed rate expires so that I can shop for a new supplier. This whole process is seamless and literally takes no time at all. I've saved $20-$25 per month since I started.
There is also a site for gas, but I haven't found many deals for my area as of yet. I think because gas is already so cheap.
The most important piece of advice is to avoid variable rates at all costs. Even if you sign up for anfixed rate plan, it will revert to variable once your term is up.
