How to Choose Your Electric Supplier

Now that recent changes in the law allow you to choose the company that generates your electricity, it's important to be a wise shopper. And to aid you in making the right selection, here are some questions you should ask any prospective electricity supplier before signing on the dotted line.

You may find that a private power company will answer many of these questions somewhat differently from your local electric cooperative. That's because those utilities operate with the objective of making a profit for their stockholders. The purpose of a co-op, on the other hand, is simply to serve its members - people like you. You can count on it.

So investigate carefully before you make that final commitment to a generation supplier. After all, you don't want to suffer a nasty stock later. Like when you get your bill.

You are not required to do anything to continue your present electric service with Warren Electric.

Questions to Ask a Potential Supplier

How much will I pay?
Find out the cost per kilowatt-hour (kWh), excluding charges for transmission, distribution and local service.

Are all kilowatt-hours charged at the same rate?
Rates may change at different times of the day or at some future point as set in your contract. Make sure you are comparing apples to apples.

Are there incentives for switching?
Consider the value of any "bonuses" you might receive for signing a contract. They may sound good, but deware of possible long-term costs. For example, is a free month of electricity worth it if you end up paying more over the length of the contract?

What are the terms of the contract?
Study the length of the contract period and the terms under which you may terminate it. Ask if it will be renewed automatically or if it can be renegotiated.

Are there restrictions on how much electricity I can use and when I can use it?
Ask if the supplier offers time-of-use rates or other pricing structures that can provide you with additional savings

How much will I save on my monthly bill if I switch?
Ask whether the savings comes off just the generation portion or the bottom line on your bill. When comparing, check with your co-op for its most current rate.

What is the cost for switching?
Ask if there are any stranded costs or fees you must pay when switching from your current supplier and if there are other fees to sign up with a new one.

How will I be billed?
Learn how expenses will be itemized on your bill and whether you will be billed separately for generation.

What are my payment options for generation?
For example, find out if you can pay with a credit card or have the amount automatically withdrawn monthy from your checking account. Ask whether "levelized billing" is an option.

Am I negotiating with a reliable supplier?
Make sure the supplier is licensed to sell electricity by the Pennsylvania Public Utility Commission (PUC). You might also want to ask your supplier if it is investing in your community--hiring local people, opening a local office, funding local groups--to improve the quality of life for everyone.

Before You Choose

• Read your sales contract and carefully review all terms. Don't assume anything.
  
  
• Check competitive rates against your co-op's most recent generation rate.
  
  
• Be aware that prices may be even better after customer choice expands to all consumers in Pennsylvania.
  
  
• Understand how prices are calculated. Formulas may be complicated and confusing.
  
  
• Listen carefully to telemarketers and get all the information you need. Don't let yourself be bullied or sweet-talked into a deal that sounds too good to be ture.
  
  
• Make sure power suppliers are licensed by the state Pennsylvania PUC.
  
  
• Ask your co-op about charges you will continue to pay for local service. Your total cost for electricity includes more than just generation.
  
  
• Remember, customer choice means you don't have to switch. You can choose to continue buying electric generation from your local electric cooperative, just as you do now.
  
  

As more Questions and Answers come up, WEC will add it to this web page.