Don’t be deceived by rate advertisements that seem to good to be true. A low initial rate is important, but it’s not a good deal if your company is going to raise prices on you after two months. Here are some questions to ask about the new electricity contract you’re signing.
- How will the rate change over time? Does it stay constant or will it vary with the market? If you think that prices will increase, a fixed rate will save you money. Remember, though, that a variable-plan is virtually guaranteed to save you some money relative to your current plan with BG&E.
- How long is the contract? Six months, one year, two years, or longer? Your choice here depends on whether you trust the company and its contract, as well as whether you will want to switch.
- Does the company offer a bonus just for signing up with them? Will this bonus have been worth it after the full contract with this company?
- Where does the electricity come from? Does this plan get electricity from just anywhere, or does it specifically use a renewable energy plant?
One thing you don’t have to worry about is the physical security of your electric connection; BG&E will still deliver your power. They’ll be as good or bad at actually getting electricity to your house as they always have.