When are electricity rates the lowest?

What factors impact electricity rates? 

 

Electricity rates differ from state to state, city to city, time of year, provider to provider…so how do you know when you’re looking at a good electricity rate? It’s important to know the factors that directly affect electricity prices so you can find a rate that works best for you.

What time of year are electricity rates the lowest? 

Demand tends to be lower during the fall and spring months when temperatures are mild; and higher in the winter and summer months when consumers have heating and cooling needs. Furthermore, summer rates are often higher than winter rates because of energy-intensive air conditioning systems running during hot days.


When it comes to pinpointing specific months rather than seasons, each state (and even each city) has its own highest and lowest demand months. For example, hotter states, such as Texas, have their lowest demand anytime between December and March; and highest demand in July and August.

     

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How does fuel type impact energy availability and rates? 

 

When extra energy is demanded, utilities are forced to use alternative sources like coal alongside the typical natural gas plants to meet the demand and prevent blackouts. These coal plants are costlier, which makes the price of electricity more expensive to meet the high demand levels. Since every consumer’s demand is different, you can determine typical demand trends by looking at your area’s weather patterns or your billing records that showcase your personal monthly demand levels.

 

Is a short or long-term electricity contract the better deal?

With different rate options available, consumers can choose between short-term and long-term electricity plans. So, how do you know which plan is the best for your electricity? It really depends on the time of year you are shopping and the area you live in.
 
With a short-term plan, the contract usually lasts less than a year and allows consumers the flexibility to shop for better electricity rates when available. Consumers can take advantage of market trends to potentially enter a contract when electricity rates are low.
With a long-term plan, you can lock in a certain rate for at least a year; and if you sign the contract when electricity prices are low, you’ll get a bargain that lasts. A long-term contract offers a stable supply rate and a predictable monthly bill. Most electricity companies offer lower monthly rates if you sign up for a long-term contract.
 
Generally, most consumers want to find the lowest rate regardless of the contract length. Others don’t want to bother finding a new electricity plan every few months and are willing to pay a little more to avoid it. Regardless of your choice, the best thing you can do is shop and compare.
 
Let Champion Energy find a rate that works best for you
 
As you can see, there are many variables that affect electricity prices. At Champion Energy Services, we’re here to help you find an electricity plan that will not only meet your specific needs, but also provide long-term cost savings.