Figuring out How Much You Are Actually Paying for Your Monthly Electricity Costs

I still think a lot of electricity customers in Texas are under the assumption that their hometown electric company is just a local business. Well, that is no longer necessarily true. Energy providers such as TXU in Midland TX are now multi-national corporations. They do serve local customers, but the infrastructure behind the companies can be global. It might give you that warm and fuzzy feeling to be sticking with a local provider for your electricity needs, but you may be paying for that feeling right out of your wallet. There are companies out there that offer a lower rate on the same electricity coming to your house.

You can switch to another electricity supplier and you still are served by your local company. They still maintain the wires in the city and to your home that bring the electricity. You still call them if there is an emergency with the actual transmission lines for electric power. You just pay for the electricity you use to another company. This is how you can get a lower rate. You can choose the lowest rate you pay per kilowatt by doing this. It is good to check every few months to see if there is a lower rate available.

For homes that are using 1,000 kilowatt hours or more per month, there usually is no monthly fee. Just look at your contract length and do not switch before it expires to avoid any early cancellation fees. The savings per month on electricity can be substantial depending on what you are paying now. It is easy to see what you are paying per unit of electricity. Just look at your kilowatt hour rate on your bill. It will show in cents on the dollar. That is multiplied out by how many kilowatt hours you use, and that is based on what your meter says. Then you look on your bill for any fees, taxes and surcharges you are paying. Get your per kilowatt hour lower, and you may be able to save a good amount of money.