Is it better to renew my electricity contract in the winter? (Dallas: insurance, credit)

[Aggielina]

My current electricity contract expires in June. I have been on a 3-year contract so I haven't had to do this in a while. My question is, should I choose something like an 18-month contract so that when it expires, we'll be in winter? I've been told that rates are less then. Does anyone know if this is generally true? If so, I don't want to be perpetually looking for new rates every summer if I can get a better deal in the winter. Thanks!

[Ralph_Kirk]

Originally Posted by Aggielina

My current electricity contract expires in June. I have been on a 3-year contract so I haven't had to do this in a while. My question is, should I choose something like an 18-month contract so that when it expires, we'll be in winter? I've been told that rates are less then. Does anyone know if this is generally true? If so, I don't want to be perpetually looking for new rates every summer if I can get a better deal in the winter. Thanks!

When I moved to the Dallas area, an old HVAC guy told me to change electricity retailers every year or even every six months if the house is all-electric.

It took me a couple of years to understand his wisdom, but the fact is that "new customers" get price breaks that expire after six months to a year on a longer term contract, and renewing a contract is never at the same low rate that a new contract can get. It's better to be a perpetual "new customer" from one company to the next.

You do not want a variable rate, nor do you want to be month-to-month. You want to get the new customer deals and then go to a different company before those deals expire.

There are several comparator websites that help you find a company to switch to at the rates you want. Remember that even if the basic rates of your current company look the same, "new customers" still get lower overall bills.

You contact the new company online and let them handle all details of switching, easy peasy. You just start sending your payments to the new company.

[elnina]

It's always better to do it in the winter when the rates are lowest. And shopping around is advised.

[lepoisson]

Winter prices are cheaper but the electric companies are sneaky and force you to sign up for plans that expire in the summer.

[TheOverdog]

IMO its best to sign up in the spring, especially if the spring has been colder than average, like this spring. They are trying to forecast rates for summer when usage is far higher and the weather just won't cooperate.

[callmebutter]

yes winter is best. sign up for plans in increments of 12 months though so you aren't renewing in summer heat. you could also get a 6 month contract to get you to the winter months. another option to consider is what is the termination fee to get out of your contract? some are massive fees $200-$300 and some are prorated based on number of months remaining. i do not see rates going down in the foreseeable future so i would look for a 2-3 year plan.

powertochoose.org is the only place you need to go to shop for a plan. pick the cheapest plan that matches what you want. don't worry to much about the "ratings" - these companies are just payment managers/servicers - if you pay your bill on time then the rating doesn't really matter.

as others have said - do not get a variable rate and do not get one with gimmicks like price surcharges or credits based on kw usage unless you know how much you use each month and have done the math.

[Ralph_Kirk]

Originally Posted by callmebutter

yes winter is best. sign up for plans in increments of 12 months though so you aren't renewing in summer heat. you could also get a 6 month contract to get you to the winter months. another option to consider is what is the termination fee to get out of your contract? some are massive fees $200-$300 and some are prorated based on number of months remaining. i do not see rates going down in the foreseeable future so i would look for a 2-3 year plan.

I've learned that anything over 12 months is a poor bet. All of them find a way to charge more money after 12 months, even if the contracted rate stays the same.

[numbersguy100]

Originally Posted by Ralph_Kirk

When I moved to the Dallas area, an old HVAC guy told me to change electricity retailers every year or even every six months if the house is all-electric.

It took me a couple of years to understand his wisdom, but the fact is that "new customers" get price breaks that expire after six months to a year on a longer term contract, and renewing a contract is never at the same low rate that a new contract can get. It's better to be a perpetual "new customer" from one company to the next.

You do not want a variable rate, nor do you want to be month-to-month. You want to get the new customer deals and then go to a different company before those deals expire.

There are several comparator websites that help you find a company to switch to at the rates you want. Remember that even if the basic rates of your current company look the same, "new customers" still get lower overall bills.

You contact the new company online and let them handle all details of switching, easy peasy. You just start sending your payments to the new company.

I've been told this is true of auto and home insurance as well. They price competitively for a new customer because they suspect (rightly or wrongly) that you're price comparing between a couple companies. But then as long as the price increases from year to year aren't too egregious, a decent % of people just won't shop around. We pay Energy Ogre $10 a month to shop around for new plans every 6 months. They handle the logistics of comparing plans, switching payment details, etc. It's possibly the best $120 I spend all year from a time savings perspective.

[callmebutter]

Originally Posted by Ralph_Kirk

I've learned that anything over 12 months is a poor bet. All of them find a way to charge more money after 12 months, even if the contracted rate stays the same.

not sure what you are doing wrong then as long as you are under contract. any increases on my bills are the securitization charges authorized by the state for the storms and issues from a couple years ago or increases in the TDU charges . both would apply no matter who you are paying bills too.

[callmebutter]

Originally Posted by numbersguy100

I've been told this is true of auto and home insurance as well. They price competitively for a new customer because they suspect (rightly or wrongly) that you're price comparing between a couple companies. But then as long as the price increases from year to year aren't too egregious, a decent % of people just won't shop around. We pay Energy Ogre $10 a month to shop around for new plans every 6 months. They handle the logistics of comparing plans, switching payment details, etc. It's possibly the best $120 I spend all year from a time savings perspective.

very true with the insurance world. you need to be shopping annually if you want to save money. i don't care for energy ogre because I can do the same thing they do with my own time, but it is a great product for those that want to save their time and headaches!

FWIW, I've never been able to input my data into energy ogre and them say they can save me money.