How to Shop and Compare IL Electricity RatesPosted on
Need Help Finding the Best Electricity Rate?
Natural gas prices are falling, which means lower energy rates for the Ameren service area are hopefully on the horizon! Unfortunately shopping for an electricity plan in Springfield can seem like a hassle. Don’t spend more money than you have to! Here’s some tips and insider knowledge to help you shop and compare the best Illinois electricity rates!
Know When to Shop electricity rates
Generally electricity rates are controlled by two things- natural gas prices and electricity usage. Because Natural gas powers generators, natural gas prices effect electric rates. On the other hand, usage is seasonal and easy to predict. So when temperatures rise in spring, electricity usage drops. And so do electricity rates. And while lower natural gas prices might reduce electric rates right now, rates will likely be lower still this spring. That's why shopping in the spring can help you secure the best rate.
Get the Plan that Fits You
Now that you know when to shop, it’s time to learn how to compare plans. The cheapest plans in Springfield are the NRG Energy Flex Electric Choice Plan at 11.80¢ / kWh. Following this is the Constellation 36 Month Home Power Plan at 12.69¢ / kWh. Finally we have the Energy Harbor Safe Harbor 9 at 14.24¢ / kWh.
The first thing you want to check is whether your plan has a variable or a fixed rate. Variable rates, much like the Ameren PTC rate, can change from month to month. Variable rate plans may sound affordable, but after the first month your rate can change. However, fixed rates remain the same throughout the contract period.
The next thing to look at is your plan term length; they're typically anywhere from 3 months to 36 months. The longer the contract, the longer you lock in the rate. Of the plans listed NRG has the shortest contract term of 3 months, Energy Harbor 9 months, and Constellation the longest at 36 months.
Finally, check out the incentives and rewards that different Illinois electricity providers might offer. Even if their rate is higher than the current PTC rate, you could save money with customer rewards and discounts. The best way to find out about rewards and incentives is to check out the individual plans terms of service.
Read the Terms of Service
While you’re shopping, make sure to read your terms of service carefully! While providers can no longer charge early termination fees, there are other charges to check for. Some providers will charge a monthly service fee. Others will charge more per kWh if your usage goes higher than a set a level.
You also want to check for what happens when your contract ends. Some will renew automatically at a different rate, usually their variable rate. You can avoid this by keeping tabs on when your contract expires. It’s also a great idea to look at customer reviews. Just remember, people are more inclined to talk about a bad experience than a good one.
Know Where to compare electricity rates
Hopefully with this information you feel ready to save this spring! But where’s the best place to shop for and compare rates? If you want convenient rate comparisons the best place to shop is https://www.ilenergyratings.com/