Right now the state shows some whopping low prices for electricity rates such as the 4.3 cent rate marketed by Pennywise Power.
Pennywise Power is owned by NRG Energy which owns Reliant Energy and this 4.3 cents per kilowatt hour rate is a 3 month rate that is subject to change after those 90 days are up.
Most people refuse to be reminded about their rate plan coming to an end until their electric bill shows them a need to change.
Providers that offer the short term prices that are exceptionally low often have that rate expire at a rate much higher than what they first signed up with.
What happens is that any losses the electric company might have incurred by offering such a low rate get recouped in the ultra-high price the rate goes up to upon the contract expiring after 3 months.
I have no way to tell you for a fact that Pennywise will be dramatically raising their rate after 3 months but it is a typical game that gets played in the industry.
By the time a customer gets an electric bill with an off-contract electricity rate on it as much as 45 days has past that the customer has been switched to the new rate.
What happens is that you go through over a month of electricity usage on a new rate before you see that the rate has gone up dramatically on you.
When you get your first new bill with the higher rate there is usually a lot of griping and complaining but it might not be until another week or two that you change companies.
Once you compare rates on a site like ours and find a different company you might have been on the higher price for closer to two months and you are just now getting with a new company that can lower that price back down.
That 4.3 cents per kilowatt hour rate may over time wind up averaging out to 7 – 8 cents per kilowatt hour once the rate goes up on you without your close attention and you take time changing to a cheaper provider.
Be careful you don’t get hooked into a short term fixed price because it will not be fixed for long and your penny wisdom is only good for the amount of months specified on the contract.
My best advice is to choose a 12 month contract at the very least and set a phone reminder to go off letting you know a couple weeks before your contract is up so you can renew your contract.