How to Choose Home Energy?

This second piece to your energy plan, rate structure, is the breakdown of how what you pay is calculated.

Stable rate

Available for: Fixed and Indexed plans

A stable rate is when you pay the same amount for each kilowatt hour (kWh) you use. This type of rate is available for fixed plans and some indexed plans. With this rate structure you can’t take advantage of seasonal market lows, but you also don’t have to worry about seasonal market highs either.

Overall, it’s one of the most reliable options out there for residents who crave stability. If that’s what you’re looking for, enter your ZIP code above to shop today’s fixed rate offers.

Flat rate

Available for: Fixed plans

Flat rate pricing is when you are charged the same price no matter how many kilowatt hours you use, within reason. The electricity company uses your usage history to determine how much to charge, and you’ll pay that same price each month. If you go over your typical usage, however, you may be charged extra.

If you use nearly the same amount of energy each month or only need a little more every once in a while, flat rate might be a good solution. Vary too much in your usage, though, and you could find yourself paying a lot of excess fees.

Tiered rate

Available for: Fixed plans

Tiered rates happen when a provider designates certain usage buckets. For example, you might pay a flat fee of $75 for up to 1000 kWh, and another $75 for the next 1000 kWh. This means that you would pay an extra $75 whether you used 1001 kWh or 1999 kWh. These buckets are set when you sign up and stay the same for the duration of your contract period, making it a fixed plan rate structure.

If you typically use just enough energy to roll over into a higher usage bucket, this might not be the structure for you. But if you find yourself within the range of one of the usage buckets, this could be a good way to get more electricity for less.

Time of use pricing

Available for: Fixed plans

A time-of-use plan is really defined by how you use it. The rates you pay are fixed at the price listed in your contract, so it’s technically a fixed plan, but your provider will offer different rates for different times of the day or week. For example, your electricity could cost less or be free from 10 p.m. to 5 a.m. on weekdays.

These plans are good if you can be flexible and tailor energy-intensive chores like laundry to certain times such as nights or weekends. Otherwise, you might end up paying more than you would with a traditional fixed rate plan.

Bill credits

Available for: Fixed plans

Bill credits are a type of pricing on fixed plans that rewards you for falling into a certain usage bucket that month. Your provider will choose which usage bucket gets credits, and this will stay the same for the duration of your contract, making it a fixed plan option.

If you know you typically fall into the usage bucket a certain plan outlines, this could be a good way for you to earn credits for future bills. But if your energy usage fluctuates a lot from month to month, a more forgiving rate structure might work better.

Variable rate

Available for: Variable and Indexed plans

Variable rates follow the flow of the energy market. Much like in the stock market, high demand equals a higher price. Low demand equals a lower price. Depending on the weather, your rate could fluctuate in either direction from one month to the next. Your provider determines how your rate will change, so be sure to read your contract carefully.

If you don’t scan the news constantly for hints of an oncoming price spike, this may not be for you. But if you’re OK with more risk for a chance at a greater payoff, variable rate could be a solution.

Wholesale pricing

Available for: Variable plans

Wholesale pricing is the biggest gamble of the energy bunch. “Wholesale” refers to buying energy in bulk, and essentially allows consumers to skip the retail electric provider middleman. The final bill is usually comprised of the service subscription fee, the wholesale price of electricity, plus fees from the utility company and state electricity grid.

Wholesale electricity can get you a lower price than retail value, but there’s substantial risk involved. When energy is in high demand (think summer and winter), wholesale prices can surge toward the Texas state cap of $9000/MW while bills jump to hundreds of dollars in a matter of days. Because of this, most wholesale providers do not have an early termination fee.

Wholesale subscribers must constantly monitor the market (prices change every 5 minutes) and have the flexibility to turn off big energy users in their homes as soon as the price spikes. If you want any sort of stability for your bill, enter your ZIP code above to shop retail electricity with one of the above options.

Heat loss through the floor, ceiling, and walls in your home could be very large if the insulation levels are less than the recommended minimum. When your house was built, the builder likely installed the amount of insulation recommended at that time. Given today's energy prices (and future prices that will probably be higher), the level of insulation might be inadequate, especially if you have an older home.

If the attic hatch is located above a conditioned space, check to see if it is at least as heavily insulated as the attic, is weather stripped, and closes tightly. In the attic, determine whether openings for items such as pipes, ductwork, and chimneys are sealed. Seal any gaps with an expanding foam caulk or some other permanent sealant. When sealing gaps around chimneys or other heat producing devices, be sure to use a non-combustible sealant.

While you are inspecting the attic, check to see if there is a vapor barrier under the attic insulation. The vapor barrier might be tarpaper, Kraft paper attached to fiberglass batts, or a plastic sheet. If there does not appear to be a vapor barrier, you might consider painting the interior ceilings with vapor barrier paint. This reduces the amount of water vapor that can pass through the ceiling. Large amounts of moisture can reduce the effectiveness of insulation and promote structural damage.

Make sure that the exterior attic vents are not blocked by insulation. Baffle vents may be installed to allow air flow into your attic space. You also should seal any openings or penetrations (such as electrical boxes) in the ceiling with flexible caulk (from the living room side or attic side) and cover the entire attic floor with at least the current recommended amount of insulation.

Checking a wall's insulation level is more difficult. Select an exterior wall and turn off the circuit breaker or unscrew the fuse for any outlets in the wall. Be sure to test the outlets to make certain that they are not "hot." Check the outlet by plugging in a functioning lamp or portable radio. Once you are sure your outlets are not getting any electricity, remove the cover plate from one of the outlets and gently probe into the wall with a thin, long stick or screwdriver. A plastic crochet hook is particularly suited, as it will retrieve small bits of any insulation material for easy identification. If you encounter a slight resistance, you have some insulation there. You could also make a small hole in a closet, behind a couch, or in some other unobtrusive place to see what, if anything, the wall cavity is filled with. Ideally, the wall cavity should be totally filled with some form of insulation material. Unfortunately, this method cannot tell you if the entire wall is insulated, or if the insulation has settled. Only a thermographic inspection can do this.

If your basement or crawlspace is unconditioned and open to the exterior, determine whether there is insulation under the living area flooring. Insulation is recommended in some situations where the basement is conditioned. In most areas of the country, an R-value of 25 is the recommended minimum level of insulation for basements and crawlspaces. If the sub-space is enclosed and contains heating or cooling appliances, air ducts or plumbing, you should insulate the sub-space perimeter rather than the living space floor. The insulation at the top of the foundation wall and first floor perimeter should have an R-value of 19 or greater. If the basement is intentionally conditioned, the foundation walls should also be insulated to at least R-19. Your water heater, hot water pipes, and furnace ducts (especially if located in unconditioned space, such as an open crawl space) should all be insulated. For more information, see our insulation section.