Electricity Facts
By knowing how to read the Electricity Facts Label you can easily compare different providers so you can find the best company that fits your energy needs and budget. Below is a list of items you will see on the label.
- Electricity Price: The electric company will detail the average price per kWh for 500 kWh, 1000 kWh and 2000 kWh for each area they serve. This lets you get a feel for how much you will be paying. If you’re not sure what your usage level is, check your latest bill to see how many kilowatt-hours you typically use. Note that this average price includes all charges you will be billed, including the costs of generation, transmission, fuel and customer service.
- Plan Terms: You’ll be able to see whether the plan is fixed, variable or indexed, and how long the term is (if it’s fixed). If they have one, the company is required to disclose the minimum term and penalty for early cancellation. If you think you might want to discontinue service after a short period of time then you may want to look for a company that does not have contracts or offers short term contracts. Your rate will not change for the duration of the term if you choose a fixed rate plan.
- Renewable Content: The provider will identify how much of the electricity from your plan is generated from renewable sources. They will also provide the statewide average, so you can see how your plan compares. This section is valuable if you are looking for a company that produces 100 percent green energy.
VIEW A SAMPLE FACTS LABEL (provided by MXenergy)
