Ohio Apples to Apples Comparison
Are you comparing ohio electric companies looking for a great rate but don’t know where to start? We’ve got you covered. We’re going to give you a couple of key things to keep in mind when shopping for the best Ohio electricity rate.
There are some important details that are easy to overlook when shopping for a new electricity plan. Such as the difference between fixed vs variable, cancellation fees, and term length.
Use these general ideas to hunt down those cheap plans. But remember, always read the contract and terms of service agreement. It may be dry but reading those documents could save you from getting hit with hidden fees!
The first fork in the road is choosing a plan with cheap electricity rates is whether you want a fixed rate plan or a variable rate plan. While both types of plans have advantages, they also have disadvantages.
Fixed rate plans have a rate that is set for the duration of the plan’s term. That means when you sign the contract the rate stays the same whether that term is 6 months a year, two years or longer. If prices go down, you’ll still have to pay the same fixed rate even if it is higher.
However, if wholesale electricity prices spike (like they do in winter and summer) then you save money because you already secured that low rate.
Variable rate plans have electricity rates that go up or down every month. That rate depends on the wholesale price for electricity in your local area in the PJM grid (called Locational Marginal Pricing or LMP). The great thing about variable rate plans is that they are ideal customer who need a short term option. Variable month-to-month plans don’t have a contract and you can leave whenever you want. Unfortunately, variable rate plans often have a low introductory rate that goes up to the regular wholesale price after the introductory period ends.
For both fixed and variable plans, seaonal demand plays a huge role in pricing. Demand
usually goes up the summer and winter due to increased cooling and heating needs. The best time to shop for cheap Ohio electricity is during the “shoulder months” of autumn and spring when temperatures are moderate and demand for electricity isn’t as high.
The next thing to consider is the length of the contract you want. Short term contracts ranging from 6 months to 9 months offer you more flexibility since you can switch electric providers once that short term is over. It’s a quick solution to high electricity bills if you don’t need to commit to a longer term plan.
Medium length contracts like 12 to 18 months are good for locking in cheap rates for a reasonable amount of time. While they don’t offer the immediate flexiblility of short term plan, but rates tend to change every 6 months. For that reason, medium length terms shield you from rate price increases for a much longer period.
Long term contracts like a 36 month contract are great if your really planning ahead and want to lock in a great rate for the foreseeable future. The problem is that those long terms can really be LONG and the cancellation fees can prevent you from switching to a lower rate plan. On the other hand, you don’t need to worry about shopping for 36 months.
Columbus Ohio Electricity Rates
On www.ohenergyratings.com you can look at a table of plans and their respective rates and even sort them by cheapest rate! Once you’ve found the cheapest rate make sure it’s the right term length for your needs.
Local utility rates also affect how you might pay per month. Knowing your your local utility charges helps you nail down a real number you can expect to pay on your monthly bill. Currently AEP Ohio Power company has a monthly distribution charge of $8.40. There is also a monthly energy charge of 1.82747 cents per kWh. These are charges that will appear on your bill from the local utility regardless of what plan you choose.
Finally, read the terms and conditions for your contract and look for discriptions of charges and fees. These include include the amount of recurring and nonrecurring charges, late payment fees, insufficient fund fees, and other fees.
A common fee for fixed rate plans is the cancellation fee which can run from $10 to as high as $150. Choosing a plan with a low cancellation fee can help you save in the future should you need to change plans before your term is up.
To summarize, choose whether you want a fixed or variable plan. Be sure to consider the plan’s term length. When it comes to comparing rates, try to shop in autumn and spring when rates are at their lowest. Lastly, always read the plan’s terms and conditions. This way you’ll ensure that you are getting a cheap rate with no surprises!
Remember, switching is easy. You can compare the best Cleveland electricity plans in your zip code area, read our active blog, or check out our reviews at http://www.ohenergyratings.com.