How to choose a (green) 2011 energy provider

Nareg Torosian, guest blogger and dear friend, shares his insight into how he is making a choice between energy providers when PECO raises rates in January. Please read up on Nareg’s insights and consider that, of the choices he considers, BlueStar is the only 100% US produced wind powered provider. BlueStar is also Green E-certified as a renewable energy provider!

How I chose a new electricity provider
by: Nareg Torosian

Intro
PA residents: In case you weren't aware, PECO will be raising their electricity delivery rates by roughly 10% (about $8 more per month), starting on January 1.

The estimated rate PECO will be charging is called the Price To Compare (PTC), which is used to evaluate offers from its competitors. The PTC is updated on a quarterly basis and looks to be 9.92 cents per kWh for January 1 - March 31, 2011, and is estimated to rise to 10.16 cents/kWh from April 1 - June 30.
For more on PTC click here and click to view 2011 PTC rates

Shopping around
Given the current state of the economy, PECO is encouraging customers to look for cheaper providers, and the PA Public Utility Commission has created the PA Power Switch website to help people switch their power supplier.

On the PA Power Switch homepage, click the Find Suppliers link in the main graphic on the right. You will then be prompted to enter your zip code, followed by the type of service you want to shop for. (Pick Regular Residential Service for electricity providers.) You'll then receive a list of providers in your area. The rest of this note will detail my research for the providers in my zip code.

Of the 17 electric suppliers I received in my search results, I immediately crossed off all those that had variable price plans. Of the remaining companies with fixed plans, I narrowed it down to the three with the cheapest listed rates: BlueStar Energy Solutions, Dominion Energy Solutions, and Gateway Energy Services. I called each company and asked them the same four questions. Here were their responses:

1. What are your 2011 rates?
BlueStar: 8.88 cents/kWh, fixed for 12 months
Dominion: 10% less than PECO's PTC for 6 months, then a flat rate of 8.99 cents/kWh for the next 6 months
Gateway: 8.90 cents/kWh, fixed for 6 months

2. Do I have to sign a contract?
BlueStar: Yes, for 12 months
Dominion: Yes, for 12 months
Gateway: Yes, for either 6 months (at 8.90 cents/kWh), 12 months (at 9.90 cents/kWh), or 24 months (at 10.8 cents/kWh)

3. Is there a cancellation fee if I break the contract?
BlueStar: Yes, $10 for each month left on the contract
Dominion: No
Gateway: Yes, $12 for each month left on the contract

4. Do you provide any other discounts or promotions if I sign now?
BlueStar: No
Dominion: No
Gateway: Yes, a $50 Visa gift card, which you will receive after 1 month of paid service

Monthly payments
So, let's crunch some numbers. Say you use an average of 500 kWh per month. (This number will be laughably low for people with high-end electronics, energy-guzzling appliances, and/or children. You should see the real number on your monthly electric bill.) Multiplying your kWh usage by the rate gives you the amount you will spend per month. Remember that when we say 8.88 cents, we're multiplying by 0.0888.

BlueStar: $44.39 per month for all of 2011
Dominion: Since PECO's PTC changes per quarter, you're actually paying one rate from January until March (8.93 cents) and another rate from April until June (currently projected at 9.13 cents). That means $44.65 each month for the first quarter of 2011 and $45.70 per month for the second. For the remaining half of the year, you'd pay $44.95 per month.
Gateway: If you sign to a 6-month contract, $44.50 per month for the first half of 2011, minus the $50 you get back with the gift card

Verdict
Though all three providers would still give you significant savings over PECO, Dominion is obviously the most expensive. If you don't like putting in a lot of time or research to save money (i.e. "set it and forget it"), then go with BlueStar.

However, because of that $50 Visa gift card, Gateway is the least expensive provider for January through June (a total savings of $49.34 over BlueStar for the same period). Of course, that means that I have to shop around for another provider come July 2011, but as you can probably tell, I don't mind doing a little research.

Hope this helped! Let me know if you have any questions.

Learning to Build Green

I met with Lori Jacobs of the GreenSpring Institute last week for coffee. Beyond her adventures as a talented internationally acclaimed musician, she is a brilliant woman with interests stemming from years of experience in the IT realm, and a burning desire to go Green! She coupled these attributes with her knowledge of building inspections and architecture to help found the GreenSpring Institute.

GreenSpring offers a virtual training suite of green building, OSHA, industry code, and specialty courses. They are a part of the U.S. Green Building Council and have resources for professionals and homeowners to learn more about green building practices, materials, and energy efficiency options. As a former Environmental Health and Safety professional, I found the information on hazardous materials training particularly helpful!

Thanks Lori for sharing your vision to “create a regenerative world through integrative education” with me. If you are interested in learning more about this expanding field, GreenSprings Institute is a great place to start!