What the review needs to establish
Use the same consumption and service dates for each offer. Ask whether capacity, transmission, losses and other adjustments are included, passed through or reset. A fixed energy price does not fix every invoice line.
Information to prepare
- Use twelve months of kWh and billed kW
- Keep energy and delivery charges separate
- Normalize monthly fees and contract dates
- Model excluded components explicitly
A worked decision example
Hypothetical: 10,000 kWh at $0.10/kWh costs $1,000 for energy. An alternative at $0.095/kWh plus $75 monthly costs $1,025. Delivery, taxes and other excluded charges must still be added consistently.
Illustrative inputs explain the decision; they are not an available offer, customer outcome or forecast.
Build an effective-rate worksheet
Divide comparable modeled cost by the same kWh only after defining the cost boundary. Show energy-only and complete modeled cost separately when delivery or demand is outside the supply offer. Preserve the underlying dollar amounts: an effective blended rate can hide a monthly fee or a change in demand billing.
How to use the result
Request an account-specific quote when the meter, load and dates are known. State averages are historical context and cannot substitute for an available commercial offer.
Calculate the usage break-even point
When offers combine different unit prices and recurring fees, solve for the quantity at which their modeled costs are equal. For an invented example, a $40 monthly fee offset by a $0.004/kWh lower energy price requires 10,000 kWh to break even on those two items. Below that quantity, the fee outweighs the unit-price difference; above it, the relationship reverses. Repeat by month for seasonal loads and include other differences before using the result. This is a comparison method, not an available offer.
Questions & answers
How should a one-time enrollment credit be compared?
Show it separately from recurring cost and confirm its eligibility, timing, and any repayment conditions. A credit can improve one period without changing the underlying unit price, and it should not be presented as a permanent annual reduction.
Can I multiply a dollars-per-MWh quote by kWh?
Convert first: one MWh equals 1,000 kWh. Preserve the original unit and converted value so a thousandfold spreadsheet error is visible. Unit conversion still does not resolve different service components or contract assumptions.
Which consumption case should drive the comparison?
Use a documented expected profile and test plausible lower and higher quantities. Monthly fees, demand, minimums, and volume provisions can change the ranking, particularly when a business expects closure, expansion, or major seasonal variation.
Sources & scope
Primary references reviewed October 15, 2026. These sources support the stated concepts; actual tariffs, program rules and signed agreements govern the account. Decision examples and operational worksheets are original educational analysis.
- EIA: electricity prices and factors affecting prices
Price components and variation; not an account-specific quote. - DOE FEMP: Evaluating utility rate options
Rate components and account-specific billing determinants. - EIA: natural gas customer choice programs
Gas choice and utility delivery; local eligibility must be confirmed. - EIA: Energy units and calculators
Energy-unit definitions; break-even example is original illustrative arithmetic.