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Reviewed · Independent information guide

How to compare an energy offer

Compare the cost for your own usage over the same period, then read what happens when the contract ends.

1. Check that the offer applies to your account

Choose the correct state, utility territory, fuel and customer class. An electricity offer does not establish gas eligibility, and a business program may not admit residential accounts. Find the official starting point for your state.

2. Separate supply from delivery

Supply pays for the energy commodity. Delivery pays for the utility network and associated service. Changing an eligible supply arrangement does not remove the delivery part of your bill. [1]

3. Read the price conditions

The Ohio regulator's supplier checklist provides useful questions to take to any offer comparison. Apply the rules and contract documents for your own state. [2]

4. Compare the same units and period

For electricity, use kilowatt-hours (kWh). For gas, confirm the bill's unit before comparing offers: a price per therm is not the same as a price per unit of gas volume. Work from the supplier's total cost schedule rather than treating unlike units as interchangeable.

An illustrative supply-only comparison

At 800 kWh, an assumed rate of $0.12/kWh costs $96. An assumed rate of $0.11/kWh plus a $15 monthly fee costs $103. The lower energy rate is $7 more expensive in this example.

These are invented numbers for explanation, not current market offers. Delivery, taxes and other applicable charges are excluded from both sides.

5. Check assistance and renewal before switching

If you receive utility assistance, confirm the rules of that exact program. In New Hampshire, Eversource says the EAP discount also applies to the supplier-services portion when a customer chooses an independent supplier. That does not determine eligibility for another state's program. [3]

Keep a copy of the final agreement and a reminder before the renewal date. A fixed supply price does not make the entire utility bill fixed, and a change of supplier alone does not guarantee savings.

Consider usage as well as price

Review which months have the highest consumption and ask your utility about efficiency programs. If you are considering solar, evaluate the project separately from supply shopping. Use the solar planning checklist.

Sources

  1. PUCO: about energy choice
  2. PUCO: questions to ask suppliers
  3. Eversource: New Hampshire Electric Assistance Program

Review date records an editorial check. Confirm current terms and eligibility at the source.