The top plans on Power To Choose are advertising a rate of about 5¢/kWh. That rate sounds too good to be true, and in reality it isn't true. If you sign up for one of these plans, you will almost certainly end up paying more. Many of the plans that appear near the top of the list use one or more of the following tricks to sell consumers on one rate and then charge them another:

• Huge Base Charges: The plans at the top of the list right charge a huge flat fee (around $50) for usage up to 1000 kWh. That's great if you use exactly 1000 kWh--you will pay 5¢ per kWh. But in the winter months, you will still pay $50, even if you barely use any electricity at all. That's a terrible deal. Also, you start paying an exorbitant rate once your usage goes above 1000 kWh. charge for your additional usage.
• Tiered Pricing: A plan will have a low rate up to a point, and then the rate skyrockets, so when you hit the summer months, you end up paying way more than you expected.
• Short-Term Plans: Many electricity providers will offer you a good rate on a 3 month plan, but when your contract up, your rates rise quickly. They are counting on you forgetting or being too busy to switch providers. Oftentimes it works, or they would not be offering these plans.
• Seasonal Plans: Energy prices are seasonal--they go up in the summer and down in the winter. In the fall, you will start to see some 6 or 9 month plans. A plan that does not cover summer will look good next to a plan that covers one or two summers. However, once your contract is up, your electricity prices will be subject to change when rates are at their highest.

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Penny power isn't realistic. Sign up for one of these plans, and you may be in for an unpleasant surprise on your electricity bill.

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Here is one of the ways that consumers can be misled on Power To Choose and similar web sites.

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