It's come to my attention that some [retail electric providers]
have been working the system . . . They’ve got all these tricky
little things in their prices, and whatever the fact sheets are
called – the nutrition label – that makes it really difficult for
—Donna Nelson, Chairman of the Public Utilities Commission of Texas
kiloWhat eliminates the confusion by:
comparing a large selection of plans
incorporating seasonal variations into the cost
customizing pricing to your home's usage
The Current Traps On Power To Choose
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
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.
So how do you find out which plan is best for you?
KiloWhat allows you to enter information about
how you use electricity, and then we crunch the numbers--pricing
each plan out month by month--to tell you how much you can actually
expect to pay. Shop KiloWhat now for rates that
you can trust.