Save Money on Utilities with These Tips from Source One
Each month Source One will provide some tips to save money in various ways. These tips will be brought to you by our own internal team, this month’s tip focuses on saving money on utilties and was provided by Scott Decker, Sr Project Analyst.
In Pennsylvania, and many states across the US, energy is deregulated, which means you can shop around for a lower price on the supply portion of your bill. The companies that compete for your business on the supply portion are sometimes referred to as secondary energy or retail suppliers. There are a number of websites providing monthly rate comparisons online depending on the state, which show the energy rates that residential customers can obtain from various secondary energy suppliers on a per kWh basis. The distribution charges and other customer charges of your energy bill you cannot affect, since the local default utility still maintains the lines and transmission infrastructure.
If you use the small home or apartment average of 500-700 KwH per month, even a few cents off of each kWh can translate into about $15-$20 savings per month. Contracts with secondary energy suppliers can lock in a fixed rate, or carry a variable rate that is based on the energy market. Depending on the current state of the market, one may be more advantageous than the other. In a variable price contract, check your bill regularly to make sure large jumps in price are not occuring. Also be sure to double check the cancellation fees in case you are moving out of your current residence within the contract time period. In any case, pricing from secondary energy suppliers is usually more competitive than the default energy supplier and can lead to some great savings.