How to Choose an Electric Power Company
Certain states allow consumers to choose their own electricity provider. Knowing what to look for in a company can result in significant savings. Homeowners have different reasons for wanting to change providers. The most common reasons are poor service, better rates, or preference of a company choosing to produce energy and addressing effects on the environment.
- Verify if your state allows consumers to choose their own electric power company provider. The easiest and most accurate way to locate this information is by contacting your city or county government.
- Collect the names and numbers of providers in your area and contact each company. Have pen and paper handy to record important information.
- Contact each company and ask questions in order to make an informed decision. You need to ask about rates, available plans, contracts (if applicable), service hours and the estimated repair time in the event of an outage. If you are a consumer with concerns about the environment, ask each company about their power sources. Consumers with environmental concerns should look for companies utilizing "green" electricity, as opposed to companies that use natural resources.
- Review a recent power bill to determine your estimated monthly usage. Use the rates obtained to determine what you can expect to pay for each company. Multiply your average kilowatt usage by each company's kilowatt per hour rate.
- Determine which factors are most important. Keep in mind one company may be cheaper, but they may not utilize green energy methods. Make a decision based on what is most important to you. Your decision depends on pricing, customer service, and your views on the environment.
- Contact the company selected to sign up for service.