One of the most unique opportunities for a fixed rate plan in Ohio is what we call a buy-down plan. This plan includes a monthly fee you pay to your supplier, in return for getting a lower price per kWh. But is it for you?
Is a Buy-Down Electricity Plan for You?
A buy-down electricity plan includes a monthly fee plus a low fixed rate per kWh.
To determine whether a buy-down plan is for you, take a look at your average monthly electricity usage. If your home is typical, you use an average of 892 kwh per month.
Divide the monthly fee by your average monthly usage.
Now add that to the rate per kWh this plan gives you, to get your effective rate per kilowatt hour.
Is it worth it? It will depend on what rate the other fixed rate plans are offering. In general, we find these plans work best for larger homes that use over 1000 kWh per month.
Here’s an example of a buy-down rate for The Illuminating Company. Enter your zip code to see buy-down rates in your area.
Buy-Down Electricity Rate – Cleveland Area
| Provider | Plan Name | Term | Rate/kWh |
|---|---|---|---|
| Public Power | Public Power 12 Month Fixed with Monthly Fee | 12 | 5.69 ¢ |
Shop Fixed Rate & Buy-Down Electricity Plans
Comparing Fixed Rate & Buy-Down Electricity Plans
Buy-down electricity plans are simply fixed rate plans with the addition of a monthly customer charge.
When comparing these two plan types, you always need to take the monthly fee into account in the per kWh rate. Otherwise, it’s easy to just buy the buy-down plan. After all, it shows the cheapest electricity rate on our site.
To compare apples to apples, you need to calculate the effective rate per kWh for the buy-down plan. Then compare that directly to the price without the monthly fee.
This helps you avoid signing up for a plan that you think has an excellent price, only to pay more in the end.
