ENERGY BROKER BASICS TRAINING MATERIAL

INTRODUCTION

IN THIS MATERIAL YOU WILL FIND SOME IMPORTANT INFORMATION THAT

EVERY ENERGY CONSULTANT SHOULD KNOW WHEN PROSPECTING A
CUSTOMER, MAKE SURE TO READ IT, THIS TRAINING MATERIAL HAS BEEN
DESIGN TO IMPROVE YOUR SKILLS AS A ENERGY BROKERS , THIS
KNOWLEGDE WILL HELP YOU TO CLOSE CUSTOMERS WITH MORE
CONDIFENCE AND HELPING THE CUSTOMER TO UNDERSTAND THAT IS
THEY ARE GETTING A BAD DEAL IN THE SUPPLY PORTION OF THE BILL. THE
MOST IMPORTANT THING TO LEARN HOW TO BE A GREAT ENERGY
CONSULTANT IS BY STUDYING THE MATERIAL THE ENERGY BROKER PITCH
AND THE REBUTTAL PACKEGDE, HOWEVER IT IS ALSO IMPORTANT TO
LEARN THE BASIC KNOWLEGDE POSSIBLE OF THE ENERGY MARKET IN THAT
WAY, YOU WILL FEEL MORE COMFORTABLE WHEN PROSPECT A HARD
CUSTOMER, IF BY ANY CHANCE YOU HAVE ANY QUESTIONS OR
CONCERNING PLEASE FEEL FREE TO SEND ME AN EMAIL AND I WILL BE
BACK WITH YOU SOON AS POSSIBLE.DANIELRODRIGUEZU28@GMAIL.COM

TABLE OF CONTENTS

1- BILL TERMS

2- HOW TO CALCULATED THE AMOUNT OF MONEY THE CUSTOMER IS PAYING ?

3- SEASONS DURING THE US

4- REGULATED ENERGY MARKET

5- ENERGY RATE OR TARRIF PLANS

6- FIXED RATE

-ADVANTAGES

-DISADVANTAGES

6- VARIABLE RATE

-ADVANTAGES

-DISADVANTAGES

7- HOW DO YOU KNOW WHAT KIND OF RATE PLAN YOU HAVE NOW?
BILL TERMS ALL YOU NEED TO KNOW.

 CUSTOMER CHARGE. MONTHLY CHARGE THAT OFFSETS COSTS FOR

BILLING, METER READING, EQUIPMENT, AND SERVICE LINE
MAINTENANCE.
 CUSTOMER DISTRIBUTION CHARGE. FIXED CHARGE FOR METER
READING, BILLING, SERVICE LINE MAINTENANCE AND EQUIPMENT.
 DEFAULT SERVICE SUPPORT CHARGE. CHARGE TO RECOVER NEW
AND DEFERRED COSTS ASSOCIATED WITH SERVING CUSTOMERS IN A
COMPETITIVE MARKET.
 DISTRIBUTION CHARGE. CHARGES FOR UNIVERSAL SERVICE
PROGRAM COSTS AND FOR THE USE OF LOCAL WIRES, TRANSFORMERS,
SUBSTATIONS AND OTHER EQUIPMENT USED TO DELIVER ELECTRICITY
TO CONSUMERS FROM HIGH-VOLTAGE TRANSMISSION LINES.
 ENERGY EFFICIENCY CHARGE. CHARGE TO FUND THE UTILITY’S
PROGRAMS DESIGNED TO REDUCE CUSTOMERS’ ANNUAL ELECTRIC
USE AND PEAK DEMAND FOR ELECTRICITY MANDATED BY ACT 129 OF
2008.
 ESTIMATED READING. ON THE MONTHS WE DO NOT READ A METER,
WE CALCULATE THE BILL BASED ON PAST ELECTRICAL USAGE.
GENERATION CHARGE - CHARGE FOR THE PRODUCTION OF
ELECTRICITY.
 HOURLY PRICING SERVICE CHARGE. CHARGES TO PROVIDE ENERGY,
CAPACITY, COMPLIANCE WITH ALTERNATIVE ENERGY PORTFOLIO
STANDARDS, TRANSMISSION AND ANCILLARY SERVICES FOR
INDUSTRIAL CUSTOMERS RECEIVING DEFAULT SERVICE.
 KWH (KILOWATT HOUR). A UNIT OF MEASURE FOR ELECTRICITY
USAGE EQUAL TO 1,000 WATTS USED FOR ONE HOUR.
 KWH DISTRIBUTION CHARGE. VARIABLE CHARGE FOR THE COST OF
USING LOCAL WIRES, TRANSFORMERS, SUBSTATIONS AND OTHER
EQUIPMENT NEEDED TO DELIVER ELECTRICITY TO A PREMISE.
 LATE PAYMENT CHARGE. A CHARGE ADDED TO THE BILL ON
BALANCES OWED AFTER THE DUE DATE.
 NON-UTILITY GENERATION CHARGE. CHARGES TO COVER AN
ELECTRIC UTILITY’S COSTS ASSOCIATED WITH CONTRACTS WITH NON-
UTILITY-OWNED GENERATION.
 PRICE TO COMPARE (PTC). PRICE PER KILOWATT HOUR TO BE USED
WHEN COMPARING TO THE PRICE OF A GENERATION SUPPLIER.
 PRICE TO COMPARE DEFAULT SERVICE. CHARGES FOR COSTS TO
PROVIDE ENERGY, CAPACITY, COMPLIANCE WITH ALTERNATIVE
ENERGY PORTFOLIO STANDARDS, TRANSMISSION AND ANCILLARY
SERVICES FOR CUSTOMERS RECEIVING DEFAULT SERVICE.
 PRORATED BILL. IF THIS IS ON THE BILL, THE CURRENT BILLING
PERIOD IS LESS THAN 26 DAYS OR MORE THAN 35 DAYS OR A RATE
CHANGE OCCURRED DURING THE CURRENT BILLING PERIOD.
 SERVICE CHARGE. CHARGE FOR OPENING AN ACCOUNT.
 SMART METER CHARGE. CHARGE FOR ASSESSING AND DEPLOYING
STATE-MANDATED SMART METER TECHNOLOGY.
 SOLAR REQUIREMENTS CHARGE. CHARGE TO ACQUIRE SOLAR
PHOTOVOLTAIC ALTERNATIVE ENERGY CREDITS TO COMPLY WITH
THE ALTERNATIVE ENERGY PORTFOLIO STANDARDS ACT.
  STATE TAXES. THE BILL INCLUDES STATE TAXES INCLUDING THE
GROSS RECEIPTS TAX. IF THE STATE SALES TAX IS APPLICABLE, IT
WILL DISPLAY AS A LINE ITEM ON THE BILL.
 STATE TAX SURCHARGE. AN ADJUSTMENT TO THE STATE TAXES
RECOVERED THROUGH MET ED’S BASIC CHARGES.
 TRANSMISSION CHARGE. CHARGE FOR THE MOVEMENT OF HIGH-
VOLTAGE ELECTRICITY FROM A GENERATION FACILITY TO OUR
DISTRIBUTION LINES.

HOW TO CALCULATED THE AMOUNT OF MONEY THE CUSTOMER IS

PAYING ?

TO OBTAIN THE COST OF ELECTRICITY, THE KWH CONSUMED IN A MONTH IS

MULTIPLIED BY THE PRICE PER KWH GIVEN BY THE COMPANY THAT
SUPPLIES THE ENERGY (SUPPLY CHARGES)

EXAMPLE:

USAGE X SUPPLY CHARGES (RATE) : $ AMOUNT DUE IN USD 563

KWH X 0,093 KWH (9,3 CENTS KWH) : $ 55,8 USD

SEASONS DURING THE US

 WINTER – DECEMBER, JANUARY AND FEBRUARY.

THE COLDER MONTHS OFTEN BRING HIGHER ENERGY BILLS FOR
HOMEOWNERS. IF YOU LIVE IN THE NORTH WITH HARSH WINTERS, HEATING
YOUR HOME MAY BE MORE EXPENSIVE THAN COOLING IT IN THE SUMMER.
WHAT'S MORE, MANY PEOPLE ARE AT HOME MORE DURING THE WINTER
MONTHS, WHICH CAN DRIVE UP ENERGY USE
BECAUSE DEMAND FOR ELECTRICITY IS LOWEST DURING THE SPRING AND FALL,
ELECTRICITY MAY COST LESS IN THESE SEASONS. ELECTRICITY MARKET RATES
ARE HIGHER IN SUMMER AND WINTER BECAUSE PEOPLE USE MORE
ELECTRICITY FOR AIR CONDITIONING AND HEAT.

 SPRING – MARCH, APRIL AND MAY.

OFF PEAK SEASON, CUSTOMER CAN GET A LOWER BILL

 SUMMER – JUNE, JULY AND AUGUST.

SUMMER IS THE HIGHET PEAK OF THE YEAR FOR THE ELECTRICITY, THE
SUPPLIER RATE TENDS TO GO UP BECAUSE OF THE HIGH DEMAND OF
ELECTRICITY. ANOTHER REASON SUMMER BILLS GET HIGHER IS THAT, AS THE
WEATHER GETS HOTTER, PEOPLE TEND TO STAY HOME MORE OFTEN WHERE
IT'S COOL. THIS MEANS RUNNING THE AC EVEN MORE, WHILE USING VARIOUS
OTHER APPLIANCES MORE OFTEN, TOO
 AUTUMN – SEPTEMBER, OCTOBER AND NOVEMBER.
AS THE AUTUMN ADVANCES THE DAYS GET SHORTER. THE LACK OF DAYLIGHT
MAY MEAN YOU USE ELECTRICITY MORE OFTEN. WITH ADDITIONAL LIGHTING
NEEDS, YOU MAY SEE A SPIKE IN YOUR BILLS.

REGULATED ENERGY MARKET

THE ENERGY MARKET IS COMPLEX AND VARIES FROM STATE TO STATE. STATES
HAVE EITHER REGULATED OR DEREGULATED ENERGY MARKETS.

 IN REGULATED MARKETS, THE ELECTRIC UTILITY COMPANIES OWN

ALL OF THE POWER TRANSMISSION AND DISTRIBUTION EQUIPMENT.
BECAUSE THEY OWN THE ENERGY GENERATED AND THE MEANS OF
DISTRIBUTING IT, YOU’RE LEFT WITH NO OTHER CHOICE IN ENERGY
SUPPLIER.
 IN DEREGULATED MARKETS, UTILITY COMPANIES DO NOT OWN
EVERY PART OF THE PROCESS. INSTEAD, MULTIPLE RETAIL ELECTRIC
SUPPLIERS OFFER THEIR OWN RATES FOR ELECTRICITY TO THE PUBLIC
AND YOU CAN CHOOSE THE SUPPLIER YOU BUY ENERGY FROM.

IF YOU LIVE IN A REGULATED STATE, YOU DON’T REALLY HAVE ANY WIGGLE
ROOM TO SEARCH FOR BETTER ALTERNATIVES. YOUR UTILITY CAN RAISE
YOUR RATE, AND YOU’RE STUCK PAYING IT. IF YOU LIVE IN A
DEREGULATED MARKET, YOU CAN SHOP AROUND FOR A BETTER RATE.

IF YOU NOTICE THAT YOUR ENERGY BILL HAS INCREASED, DON’T PANIC.
THERE ARE PLENTY OF POSSIBLE REASONS, MANY OF WHICH ARE UNDER
YOUR CONTROL. YOU MAY BE ABLE TO MAKE SOME CHANGES TO TAKE
MORE CONTROL OF YOUR POWER BILL AND LOWER IT IN FUTURE MONTHS.

DEREGULATED ENERGY STATES

THE MAJORITY OF U.S. STATES CONTINUE TO REGULATE ENERGY, BUT
MANY STATES ARE OPENING UP TO DEREGULATION. AT PRESENT, STATES
AND DISTRICTS WITH THE POWER TO CHOOSE INCLUDE THE FOLLOWING:

 TEXAS
 CALIFORNIA
 CONNECTICUT
 DISTRICT OF COLUMBIA
 DELAWARE
 ILLINOIS
 MAINE
 MARYLAND
 MASSACHUSETTS
  MICHIGAN
 MONTANA
 NEW HAMPSHIRE
 NEW JERSEY
 NEW YORK
 OHIO
 PENNSYLVANIA
 RHODE ISLAND

ALL IN ALL, ENERGY DEREGULATION IS A POSITIVE MOVEMENT THAT
BOOSTS THE POWER OF ENERGY USERS AND IMPROVES CUSTOMER SERVICE.
NOW THAT YOU UNDERSTAND THE HISTORY OF ENERGY DEREGULATION,
YOU CAN READ MORE ABOUT THE IMPORTANCE OF ENERGY CHOICE
AND WHY IT MATTERS FOR YOU AND YOUR HOME OR BUSINESS.

HOW DOES ENERGY DEREGULATION WORK?

TODAY, ENERGY USERS HAVE THE POWER TO CHOOSE WHERE THEIR
ENERGY COMES FROM, BUT THAT WASN’T ALWAYS THE CASE. ENERGY
DEREGULATION IS THE RESTRUCTURING OF THE EXISTING ENERGY
MARKET, AND SEEKS TO PREVENT ENERGY MONOPOLIES BY INCREASING
COMPETITION.

THIS GROWING MOVEMENT ALLOWS ENERGY USERS TO CHOOSE FROM

MULTIPLE ENERGY PROVIDERS BASED ON RATES THAT SUIT THEIR NEEDS
AND SPECIALIZED PRODUCT OFFERINGS.

ENERGY DEREGULATION WORKS THROUGH REVERSE AUCTION, WHERE

EACH COMPANY OFFERS TO SELL ITS ENERGY AT THE LOWEST POSSIBLE
RATE. INDEPENDENT AGENCIES PURCHASE THE ENERGY NEEDED TO SUIT
THE DEMAND THEY PREDICT, AND THEN SET THE BEST RATE FOR THEIR
CUSTOMERS.

ENERGY IS THUS DELIVERED THROUGH THE EXISTING UTILITY

INFRASTRUCTURE. THE UTILITY COMPANIES THAT OWN THE
INFRASTRUCTURE ARE RESPONSIBLE FOR TRANSMITTING ENERGY, BUT
NOT FOR SETTING THE RATE ENERGY USERS PAY. THIS PROCESS ALLOWS
ENERGY USERS TO RECEIVE THE SAME SERVICE, BUT AT A RATE THAT FITS
THEIR NEEDS.

LIST OF DEREGULATED STATES IN 2022

THERE ARE CURRENTLY 29 STATES WITH DEREGULATED ENERGY
SECTORS:
 DEREGULATED ELECTRICITY (2): DELAWARE AND OREGON.
 DEREGULATED GAS (12): FLORIDA, GEORGIA, KENTUCKY, MONTANA,
NEBRASKA AND SOUTH DAKOTA HAVE DEREGULATED
NATURAL
 GAS. INDIANA, IOWA, NEW MEXICO, WEST VIRGINIA AND WYOMING HAVE
LIMITED GAS OPTIONS. COLORADO HAS ENACTED GAS DEREGULATION BY
LAW, BUT THERE ARE NO OPTIONS YET.
 DEREGULATED ELECTRICITY AND GAS
(15): ILLINOIS, MARYLAND, MASSACHUSETTS, MICHIGAN, NEW
JERSEY, NEW YORK, OHIO, PENNSYLVANIA AND RHODE ISLAND HAVE
DEREGULATED BOTH SERVICES. THE LIST ALSO INCLUDES
CONNECTICUT, MAINE, NEW HAMPSHIRE, TEXAS AND VIRGINIA; BUT GAS
OPTIONS ARE LIMITED OR ONLY AVAILABLE FOR LARGE COMMERCIAL
AND INDUSTRIAL CONSUMERS. CALIFORNIA HAS ALSO DEREGULATED
BOTH SERVICES, BUT ELECTRICITY OPTIONS ARE EXTREMELY LIMITED.
 WASHINGTON DC HAS DEREGULATED BOTH UTILITY SERVICES.
THE 21 STATES WHO STILL HAVE A FULLY REGULATED ENERGY SECTOR ARE
ALABAMA, ALASKA, ARIZONA, ARKANSAS, HAWAII, IDAHO, KANSAS,
LOUISIANA, MINNESOTA, MISSISSIPPI, MISSOURI, NEVADA, NORTH CAROLINA,
NORTH DAKOTA, OKLAHOMA, SOUTH CAROLINA, TENNESSEE, UTAH,
VERMONT, WASHINGTON, AND WISCONSIN

VARIABLE VS. FIXED-RATE ENERGY PLANS: WHICH SHOULD YOU CHOOSE?

BEFORE CHOOSING AN ENERGY PLAN, IT’S IMPORTANT TO KNOW WHAT YOUR
OPTIONS ARE. YOUR ELECTRICITY PROVIDER MAY OFFER BOTH VARIABLE- RATE
PLANS AND FIXED-RATE PLANS. BUT HOW DO THESE ENERGY PLANS WORK? AND
WHICH ONE CAN BETTER HELP YOU SAVE ON YOUR ELECTRICITY BILL?
DETERMINING THE BETTER CHOICE FOR YOU STARTS WITH UNDERSTANDING
VARIABLE VS. FIXED ENERGY PLANS AND THE BENEFITS THEY OFFER.
 WHAT IS A FIXED-RATE ENERGY PLAN?
WITH A FIXED-RATE ENERGY PLAN, THE PRICE YOU PAY PER KILOWATT-HOUR (KWH)
STAYS THE SAME THROUGHOUT YOUR CONTRACT. SO EVEN IF MARKET PRICES
CHANGE, YOUR ENERGY RATE WON’T BE AFFECTED. A SET PRICE MAKES IT EASIER FOR
YOU TO PLAN FOR HOW MUCH YOU’LL BE SPENDING ON ENERGY EACH MONTH.

EVEN SO, A FIXED-RATE PLAN DOESN’T GUARANTEE THAT YOUR ELECTRIC BILL WILL
ALWAYS BE THE SAME. THE RATE IS STILL APPLIED PER KILOWATT-HOUR. SO, YOUR
MONTHLY BILL WILL DEPEND ON HOW MUCH ENERGY YOU USE, AS WELL AS ANY
ADDITIONAL FEES FROM THE UTILITY. TO GET AN IDEA OF THE AVERAGE FIXED
SUPPLY ELECTRICITY RATE THAT YOU’LL PAY, VIEW AVERAGES FOR THE STATE YOU
LIVE IN.

THE BENEFITS OF CHOOSING A FIXED-RATE ENERGY PLAN

WHEN COMPARING FIXED-RATE VS. VARIABLE-RATE ENERGY PLANS, LOOK AT THE
BENEFITS EACH PLAN CAN OFFER. FOR EXAMPLE, A FIXED-RATE PLAN HAS MANY
BENEFITS THAT COULD HELP KEEP YOUR ENERGY COSTS IN CHECK, SUCH AS:

 A FIXED PER-KILOWATT-HOUR RATE THAT WON’T GO UP EVEN IF MARKET

PRICES RISE ABOVE YOUR RATE
 THE ABILITY TO BUDGET AROUND YOUR ELECTRICITY COSTS
 A MORE CONSISTENT AND PREDICTABLE MONTHLY BILL

THE DISADVANTAGES OF A FIXED-RATE ENERGY PLAN
YOU SHOULD ALSO CONSIDER THE DISADVANTAGES OF EACH PLAN WHEN ANALYZING
FIXED-RATE VS. VARIABLE-RATE ELECTRICITY PLANS. THE DISADVANTAGES OF FIXED-
RATE ENERGY PLANS INCLUDE:

 A PER-KILOWATT-HOUR RATE THAT WILL REMAIN THE SAME EVEN IF

MARKET PRICES DROP BELOW YOUR RATE
 POSSIBLE EARLY-CANCELLATION FEES IF YOU DECIDE TO CHANGE PLANS
BEFORE YOUR CONTRACT ENDS

WHAT IS A VARIABLE-RATE ENERGY PLAN?

WITH A VARIABLE-RATE PLAN, THE PRICE YOU PAY PER KILOWATT-HOUR FOR
ELECTRICITY MAY BE DETERMINED BY THE MARKET OR OTHER FACTORS
CONSIDERED BY THE RETAIL ENERGY SUPPLIER. SINCE THE MARKET COST OF
ELECTRICITY CHANGES FREQUENTLY, YOUR RATES COULD TOO. THIS CAN BE A GOOD
THING WHEN MARKET PRICES DROP. BUT WHEN FACTORS LIKE HIGH TEMPERATURES
OR INCREASED DEMAND RAISE ENERGY PRICES, A VARIABLE- RATE PLAN COULD GET
COSTLY.

VARIABLE-RATE ENERGY PLANS CAN ALSO BE COMPLICATED. SOME MAY EVEN

START AT A LOWER FIXED RATE FOR A MONTH OR TWO AND THEN JUMP TO A HIGHER
VARIABLE RATE. THAT’S WHY IT’S IMPORTANT TO CAREFULLY READ THROUGH THE
DETAILS BEFORE DECIDING ON ANY ENERGY PLAN.
WITH A VARIABLE-RATE PLAN, THE PRICE YOU PAY PER KILOWATT-HOUR FOR
ELECTRICITY MAY BE DETERMINED BY THE MARKET OR OTHER FACTORS
CONSIDERED BY THE RETAIL ENERGY SUPPLIER. SINCE THE MARKET COST OF
ELECTRICITY CHANGES FREQUENTLY, YOUR RATES COULD TOO. THIS CAN BE A GOOD
THING WHEN MARKET PRICES DROP. BUT WHEN FACTORS LIKE HIGH TEMPERATURES
OR INCREASED DEMAND RAISE ENERGY PRICES, A VARIABLE- RATE PLAN COULD GET
COSTLY.

VARIABLE-RATE ENERGY PLANS CAN ALSO BE COMPLICATED. SOME MAY EVEN

START AT A LOWER FIXED RATE FOR A MONTH OR TWO AND THEN JUMP TO A HIGHER
VARIABLE RATE. THAT’S WHY IT’S IMPORTANT TO CAREFULLY READ THROUGH THE
DETAILS BEFORE DECIDING ON ANY ENERGY PLAN.

THE BENEFITS OF CHOOSING A VARIABLE-RATE ENERGY PLAN

IT’S EASIER TO CHOOSE THE RIGHT ENERGY PLAN WHEN YOU UNDERSTAND HOW
VARIABLE VS. FIXED ENERGY PLANS BENEFIT CUSTOMERS. WITH A VARIABLE-RATE
PLAN, YOU’LL BE ABLE TO ENJOY BENEFITS SUCH AS:

 INCREASED SAVINGS ON YOUR ELECTRICITY BILL WHEN MARKET PRICES

ARE LOW
 GREATER FLEXIBILITY TO SWITCH ENERGY PROVIDERS

THE DISADVANTAGES OF A VARIABLE-RATE ENERGY PLAN

VARIABLE-RATE PLANS DO OFFER SOME PERKS. BUT YOU’LL ALSO NOTICE SOME
DOWNSIDES WHEN COMPARING VARIABLE ELECTRICITY AND VARIABLE GAS RATES
VS. FIXED RATES. SOME OF THE BIGGEST DISADVANTAGES OF A VARIABLE-RATE
ENERGY PLAN INCLUDE:

 CHANGING RATES THAT INCREASE WHEN MARKET PRICES ARE DRIVEN

UP
 PAYING MORE PER KILOWATT-HOUR WHEN THE COST OF NATURAL GAS
AND OTHER FUELS RISE
 UNEXPECTED SPIKES IN YOUR MONTHLY BILL THAT MAKE IT HARD TO
PREDICT AND BUDGET YOUR EXPENSES

VARIABLE-RATE VS. FIXED-RATE PLANS

SO, WHICH IS BETTER: FIXED OR VARIABLE ENERGY RATES? ELECTRICITY PLANS

AREN’T ONE-SIZE-FITS-ALL, SO THE ANSWER WILL VARY BY CUSTOMER. WHETHER
YOU SHOULD CHOOSE FIXED OR VARIABLE ENERGY DEPENDS ON HOW YOUR FAMILY
USES ENERGY. IT ALSO MATTERS WHERE YOU LIVE AND HOW YOU LIKE TO
STRUCTURE YOUR FINANCES. THE BIGGEST DIFFERENCE BETWEEN VARIABLE- RATE
VS. FIXED-RATE PLANS IS CERTAINTY. FIXED RATES MEAN MONTHLY BILLS YOU CAN
PLAN FOR MORE EASILY. SO, IF YOU WANT A PREDICTABLE BUDGET, A FIXED-RATE
PLAN IS LIKELY A BETTER OPTION FOR YOU.
PREDICTING YOUR ENERGY EXPENSES CAN BE DIFFICULT WITH A VARIABLE-RATE
PLAN. BUT WHAT IF YOU’RE WILLING TO ADJUST YOUR ENERGY USE ACCORDING
TO MARKET TRENDS? IN THAT CASE, YOU COULD SAVE MONEY WITH A VARIABLE-
RATE PLAN. HOWEVER, MANY INDIVIDUALS AND FAMILIES MAY FIND THAT KIND OF
LIFESTYLE AND UNCERTAINTY DIFFICULT TO MANAGE. IF YOU’RE A NATURAL GAS
CUSTOMER, YOU MAY ALSO HAVE A CHOICE BETWEEN FIXED RATES AND VARIABLE
RATES FOR YOUR BILLING PLAN. IT’S IMPORTANT TO WEIGH THE ADVANTAGES AND
DISADVANTAGES OF FIXED VS. VARIABLE GAS RATES TO SEE WHICH CAN HELP YOU
REDUCE YOUR ENERGY EXPENSES. TAKE SOME TIME TO UNDERSTAND THE MEANING
OF FIXED VS. VARIABLE ENERGY RATES. BY DOING SO, YOU’LL HAVE A MUCH BETTER
IDEA OF WHICH PLAN BETTER SUITS YOUR NEEDS. JUST AS NO TWO ELECTRICITY
PLANS ARE THE SAME, NO TWO HOUSEHOLDS HAVE THE SAME ENERGY NEEDS. IT
COMES DOWN TO HOW YOU USE ENERGY, HOW YOU LIKE TO BUDGET, HOW MUCH
RISK YOU CAN TAKE AND YOUR LOCAL ENERGY PRICES. BUT WHICHEVER PLAN YOU
CHOOSE, BE SURE TO EXAMINE THE TERMS AND CONDITIONS OF YOUR CONTRACT
BEFORE COMMITTING.

HOW DO YOU KNOW WHAT KIND OF RATE PLAN YOU HAVE NOW?

IF YOU ALREADY KNOW WHO PROVIDES ELECTRICITY TO YOUR ADDRESS, YOU

CAN FIGURE OUT WHAT KIND OF RATE PLAN YOU HAVE BY CHECKING YOUR
MOST RECENT ELECTRICITY BILL. REMEMBER: YOUR ENERGY SUPPLIER MAY BE
DIFFERENT FROM YOUR LOCAL UTILITY, SO LOOK FOR THE SECTION THAT SAYS
“SUPPLY CHARGES” OR “SUPPLY SERVICES.” IF IT DOESN’T SAY YOUR TYPE OF
RATE PLAN, LOOK AT HOW THE COSTS ARE STRUCTURED ON YOUR BILL. GETTING
CHARGED A SINGLE RATE PER KILOWATT-HOUR MONTH AFTER MONTH? YOU’RE
LIKELY ON A FIXED-RATE PLAN. GETTING CHARGED SEVERAL DIFFERENT RATES
PER KILOWATT-HOUR? YOU’RE LIKELY ON A VARIABLE-RATE PLAN. NOW THAT
YOU’RE FAMILIAR WITH VARIABLE GAS OR ELECTRICITY RATES VS. FIXED GAS
OR ELECTRICITY RATES, YOU CAN START COMPARING YOUR ENERGY PLAN
OPTIONS. SHOULD YOU CHOOSE FIXED OR VARIABLE ENERGY? THERE ARE
BENEFITS TO BOTH TYPES OF ENERGY PLANS. WHICH YOU CHOOSE WILL BE
DETERMINED BY YOUR HOUSEHOLD’S NEEDS. SOME CUSTOMERS TAKE THE RISK
WITH A VARIABLE-RATE PLAN IN HOPES OF SAVING MONEY, WHILE MANY OPT
FOR THE CERTAINTY OF A FIXED RATE. IF YOU LIVE IN A STATE WITH ENERGY
CHOICE, YOU MAY BE ABLE TO GET A LOWER ENERGY RATE BY SWITCHING TO
CONSTELLATION FROM YOUR CURRENT ELECTRICITY PROVIDER. THERE WILL BE
NO SERVICE INTERRUPTIONS OR UNEXPECTED FEES FROM CONSTELLATION WHEN
YOU SWITCH. AVAILABLE IN EVERY STATE WE SERVE, FIXED-RATE ELECTRICITY
PLANS ARE PERFECT IF YOU ENJOY PRICE CERTAINTY AND PREDICTABILITY.