In some deregulated markets, the local utility company can offer electric service at a standard service rate which is regulated by the state. In other deregulated markets, customers can receive electricity from a default electricity provider that may be related to their local utility. These are options for customers who don’t want to shop for an electricity plan and explore the possibility of a lower electricity bill.

Utility companies, who invest large amounts of their capital into grid infrastructure, don’t have cash on hand to make bulk electricity purchases. They’re paying as they go, and they’re passing on the cost of this spur-of-the-moment buying to you, the consumer. The price utilities pay for electricity changes constantly, affected by uncontrollable variables like changing fuel prices, fluctuating operational costs between various types of power plants, infrastructure costs, reduced demand due to increased energy efficiency, and regulatory changes. Local power utility customers then wind up getting charged whatever the going rate may be at that moment.


Since the 1990s, many regions have opened up the generation and distribution of electric power to provide a more competitive electricity market. While such markets can be abusively manipulated with consequent adverse price and reliability impact to consumers, generally competitive production of electrical energy leads to worthwhile improvements in efficiency. However, transmission and distribution are harder problems since returns on investment are not as easy to find.

Variable Rate: With a variable rate, you stand closer to the Gas Electricity. Rather than keep your costs separate from market conditions, you experience the rise and fall of price alongside your provider. You profit when supply exceeds demand, but could pay through the nose if the electricity grid becomes overtaxed. That usually means a higher bill in the summer and winter (when demand is at its highest) and a lower one in the fall and spring. A variable rate plan is best for people interested in staying on top of market changes – when prices get too exorbitant, there’s no contract and no cancellation fee if you want to try a new provider.
The Public Utility Code authorizes the Best Energy Company to collect an annual fee of Electricity Plans from each licensed / certified supplier, broker, marketer and aggregator of electricity and natural gas approved to do business in the Commonwealth of Pennsylvania. In addition, an annual supplemental fee based on reported annual gross intrastate operating revenues will be applicable to suppliers of electricity and natural gas.
“Special Fixed Rate Offer,” said the notice that arrived in Maryland mailboxes recently. “Compare Electricity Prices¢ per kwh.” The wording made it sound like a bargain, but it’s actually one of the most expensive electricity deals in the state, according to the Maryland Public Service Commission website. Deregulation of the energy industry, giving customers alternatives to the old line utilities, was supposed to foster competition and lower prices for consumers. But it doesn’t always work out that way.
In the spirit of free market competition—which, hey, is the spirit of America, right?—energy consumers can now choose between modern third party energy companies or their local utility company to power up their home. In Gas And Electric, President Power Company’s Energy Policy Act increased efficiency standards for building codes, required alternative fuel vehicles to be included in government fleets, and promoted Compare Electricity Rates as a means to reduce foreign fuel dependence. This act was also the catalyst for a change in the utility market, restructuring it so that third party energy suppliers could now operate in many states alongside the once natural monopoly of traditional utility companies.
Your energy company (called Retail Electric Providers, or, Compare Energy Companies) such as Switch Energy, sells electricity to you and handles customer service and billing. Compare Energy Companies also compete for your business by offering pricing options or added customer service benefits. When you sign up for an electricity plan with Switch Energy, you help us change the way power is made by supporting energy made from pollution-free, renewable resources like the wind and sun.

Your most effective weapon, however, is a site like Cheap Electricity (Power to Choose) to locate and compare details from various Houston electricity resellers. In one fell swoop, you will efficiently and quickly locate and classify cheap electricity resellers all on one page, instead of wasting your valuable time searching out available companies and visiting their websites one by one (who even does that any more?).
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