7 Things to Compare Before Switching Electricity Companies in US

Switching electricity suppliers can save you real money – sometimes hundreds of dollars a year – but only if you compare the right details before you sign anything. Too many households pick based on the first low number they see and end up locked into a deal that costs more in month two than their utility ever charged.

If you live in a deregulated state like Pennsylvania, Ohio, Texas, or Illinois, you already have the legal right to choose your supplier. Here are the seven things you need to look at before you make that switch.

1. Rate Type: Fixed vs. Variable

With a fixed rate, the price you pay per kilowatt-hour stays the same throughout the entire contract, your bill will still fluctuate with how much electricity you use, but a January spike in the wholesale market won’t touch your rate. Variable rates, by contrast, can be adjusted monthly by the supplier, sometimes pegged to market indexes and sometimes at the supplier’s own discretion. They’ll occasionally come in lower than fixed rates at the start. But they carry genuine price risk, particularly across a winter heating season.

For most households that want predictable bills, a fixed rate is the safer choice. The only time a variable rate makes sense is if you plan to exit the contract quickly and the starting rate is significantly below the fixed alternative.

When comparing plans, it can also help to explore comparison platforms such as Volt Butler alongside other available resources. These platforms can give you a clearer view of rates from licensed suppliers across deregulated states and make it easier to compare fixed and variable plans side by side. The key is to look beyond the advertised rate and understand how the pricing structure could affect what you pay over the course of the contract.

2. Price Per Kilowatt-Hour

The advertised rate is the most obvious figure to look at, though it’s only meaningful when you’re making a true apples-to-apples comparison. Suppliers express their supply charge in cents per kWh. Your utility will still bill you separately for distribution, transmission, and other delivery charges, and those don’t budge no matter which supplier you choose.

Don’t get swept up by a low supply rate before pulling your last three utility bills and calculating your average monthly usage in kWh. Multiply that figure by the supplier’s quoted rate, then tack on your utility’s fixed delivery charges to land on a realistic monthly estimate. A rate of 8.5 cents per kWh against 800 kWh of monthly usage runs $68 for supply alone, your actual bill climbs higher once delivery costs come back into the picture.

So don’t compare supplier rates to your total utility bill. Compare them only to the supply portion of your current bill, which is usually labeled “generation charge” or “supplier services.”

3. Contract Length and Early Termination Fees

Suppliers offer contract terms that typically run from 6 months to 36 months. Longer contracts sometimes come with lower rates, but they also expose you to early termination fees (ETFs) if you move, switch again, or find a better deal before the term ends.

Read the ETF clause carefully. Some contracts charge a flat fee – say $50 to $150 – while others charge a per-month fee for the remainder of the term. A 24-month contract with a $10-per-month remaining ETF could cost you $200 if you need to exit 20 months early. That fee can erase months of savings in a single transaction.

Short-term contracts and month-to-month plans trade a slightly higher rate for flexibility. If prices in your market are drifting downward, a shorter term lets you re-shop sooner rather than waiting out a long commitment. If rates look poised to climb, locking in for 12 to 24 months at today’s price can shield you from that increase.

4. Supplier Licensing and Credentials

Not every company that markets electricity to consumers holds a valid license from your state’s public utility commission. Licensing matters because it means the supplier has met the financial and regulatory requirements set by the state, and it gives you recourse through the PUC if something goes wrong.

In Pennsylvania, the Public Utility Commission keeps a public list of licensed electric generation suppliers; Ohio’s PUCO runs an equivalent database. Texas electricity providers must hold a retail electric provider license issued by the Public Utility Commission of Texas. Before you sign anything, check that the supplier you’re weighing actually appears on your state’s official licensed supplier list.

A supplier that can’t show up on your state’s PUC registry is a supplier you should walk away from, regardless of the rate they quote.

5. Introductory Rates vs. Standard Rates

Some suppliers advertise a low teaser rate for the first one to three billing cycles, after which the rate steps up to a standard price that may be significantly higher. This is legal and common. The problem is that many consumers sign up based on the introductory figure and then miss the notification that their rate has changed.

Ask the supplier directly what rate you’ll pay once any introductory period expires. Get that number in writing before you commit. If the contract language points you to a separate rate schedule – or states that the post-intro rate is subject to change – treat that as a red flag.

The math is straightforward: if an intro rate saves you $15 per month for two months but the standard rate is $20 per month above your current supplier for the next ten months, the deal costs you net $170 more, not less.

6. Renewable Energy Content

Many electricity suppliers offer plans that include a percentage of renewable energy – wind, solar, or hydro – sourced through Renewable Energy Certificates (RECs). These plans sometimes cost slightly more per kWh, though the premium has narrowed significantly in recent years.

If a green energy option matters to you, ask the supplier what percentage of the plan is renewable and how that’s verified. A 100% renewable plan backed by RECs means the equivalent of your usage was generated from renewable sources and fed into the grid, even if the electrons reaching your home come from the regional mix.

And if a green plan’s rate is already competitive with the standard fixed rate in your area, there’s no reason not to choose it.

7. Customer Service and Complaint History

A supplier’s rate looks attractive until the day you have a billing dispute and can’t reach anyone. Customer service quality varies widely among retail suppliers, and your state’s PUC typically publishes complaint data that you can check before you commit.

Pennsylvania’s PUC complaint database is open to the public, and Texas publishes complaint data through the Public Utility Commission of Texas website. Look at complaint volume relative to the supplier’s customer base. Pay close attention to any pattern of billing errors or failure to honor contract terms, those two categories are the most telling.

Also check whether the supplier has a clear cancellation process and what their policy is for the period before your contract officially starts. Most states give you a short window to rescind without a fee after enrollment.

Conclusion

Switching electricity companies isn’t a complicated process, but it does reward anyone who slows down and looks past the headline rate. Compare rate type, the per-kWh price against your real usage, contract terms, licensing status, post-intro pricing, renewable content, and complaint history before signing. These seven points to compare before switching electricity companies in the US cover every detail that determines whether a deal genuinely saves you money or quietly costs you more. A bit of due diligence now protects you for the full length of the contract.

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More Recommended Ebike/Scooters

Check out these other ebikes and scooters I've reviewed:

Urban Arrow Ebike – Last year, I made one of the largest purchases I’ve ever made – I bought a $9,000 electric cargo bike from Urban Arrow. In my Urban Arrow review, I will discuss what it is and why I decided to buy this bike, as well as discuss how impactful a bike like this can be on your journey to financial independence.
Troxus Explorer Step-Thru Ebike – The Troxus Explorer Step-Thru is a fat-tire ebike that I’ve had the pleasure of riding for a while now. It has amazing power, great looks, and awesome range. If you’re looking for a great fat-tire ebike that offers a lot for the price, the Troxus Explorer Step-Thru is definitely one for you to consider. Check out my Troxus Explorer Step-Thru Review.
Hovsco HovBeta Ebike – The HovBeta is a folding ebike with great specs and a lot of interesting features, and importantly, it’s sold at a good price point. I’ve had a blast commuting with it and using it to do deliveries with DoorDash, Uber Eats, and Grubhub. Check out my Hovsco HovBeta Ebike Review.
Vanpowers Manidae Ebike – The Vanpowers Manidae is a fat tire ebike that I’ve been riding as my primary winter commuting bike and have also been using it to do food delivery with apps like DoorDash, Uber Eats, and Grubhub. After clocking in a decent number of miles with this ebike, I wanted to write a post sharing what my experience with the Vanpowers Manidae ebike has been like. Check out my Vanpowers Manidae Review.
Sohamo S3 Step-Thru Folding EBike Review – A Great Value Folding Ebike – The Sohamo S3 Step-Thru Folding Ebike is an entry-level folding ebike that offers a lot of value for the price point. I’ve been riding the Sohamo S3 for a while now, putting the bike through its paces, and I have to say, this bike has exceeded all of my expectations. Check out my Sohamo Review.
KBO Flip Ebike – The KBO Flip is an excellent bike. I’ve had a great time riding it and think it’s a versatile bike that can be used for a lot of purposes and can fit a variety of lifestyles. It’s worked out great for me as a general commuter bike and as a food delivery bike. Check out my KBO Flip Review.
Hiboy P7 Commuter Ebike – The Hiboy P7 is an excellent electric commuter bike that’s offered at an affordable price point. The range and speed of this bike are both very good, so you won’t have any trouble getting anywhere you need to go with it. As a food delivery vehicle, this is also good – with how much range it offers, you’ll be able to work all day on a single charge. Check out my Hiboy P7 Commuter Electric Bike Review.
Himiway Escape Ebike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
Espin Sport Ebike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
Varla Falcon Scooter – The Varla Falcon is an excellent scooter that offers a good amount of power at a lower price point compared to more powerful scooters. It’s not exactly an entry-level scooter, nor is it a high-powered scooter. I think it fits somewhere in-between those two categories – an intermediate scooter if I had to give it a category. Check out my Varla Falcon Review.
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For additional investing app bonuses, be sure to check out the ones below:

M1 Finance ($75) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $75 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
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More Recommended Bank Account Bonuses

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Ally Bank ($100) – Of all the banks out there, Ally is, without a doubt, my favorite. At the moment, Ally is offering $100 to customers who open an eligible Ally account and meet the requirements. Here are the step-by-step directions to earn your Ally Bank referral bonus.
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Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.

Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.

Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:

SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
5% Savings Accounts. I'm currently getting 5.24% interest on my savings through a company called Raisin. Opening a Raisin account takes minutes to complete, it's free, and all of your funds are FDIC-insured. I explain how it works, why I'm now using it to store my emergency fund and any other cash savings I have, and why I recommend everyone check it out in this review.
US Bank Business. US Bank is currently offering new business customers a $400/$1200 signup bonus after opening a new account and meeting certain requirements.
M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $75 for opening an account.
Empower. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.

Feel free to send Kevin a message here.