Understanding electricity plans

Fixed vs. variable rates

A fixed-rate plan locks your supply rate for the length of the term, so your rate per kilowatt-hour stays the same even when the market moves. Your bill still changes with usage.

A variable-rate plan moves with the market. It can be cheaper in mild months and noticeably more expensive during a heat wave or a cold snap.

Read the rate the right way

Advertised rates are often quoted at a specific usage level, such as 1,000 kWh per month. If your household uses much less, your effective rate can be higher than advertised because of monthly base charges.

• Rate per kWh at your actual average usage
• Monthly base or minimum usage fee
• Term length and what happens when it ends
• Early termination fee
• Whether the plan includes renewable supply

Watch the rollover

When a fixed term ends, many plans roll onto a month-to-month variable rate that is higher than what you signed up for. Set a reminder about a month before your term expires.