Everyone’s looking for the lowest price per kWh for power in Pennsylvania. Some companies offer very low rates in exchange for adding on a monthly service fee. These prices look great, but can be more complicated than what first meets the eye.
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 866 kwh per month or 10,402 kWh annually.
Divide the monthly fee by your average monthly usage. (Example: $14.95 monthly fee / 866 kWh = $.017 per kWh)
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 PECO. Enter your zip code to see buy-down rates in your area.
Buy-Down Electricity Rate – Philadelphia Area
| Provider | Plan Name | Term | Rate/kWh |
|---|---|---|---|
| Public Power | Public Power 12 Month Fixed with Monthly Fee | 12 | 7.19 ¢ |
Shop Fixed Rate & Buy-Down Electricity Plans
Comparing Fixed Rate & Buy-Down Electricity Plans
A buy-down electricity plans is simply a fixed rate plan with the addition of a monthly customer charge.
But when you compare these plans, you must factor in the cost of the monthly fee. Otherwise, you could lock in a rate that you think is cheap… but that monthly fee will have you paying more than you should.
To compare rates side by side, you need to calculate the effective rate for the buy-down plan, using the process we outline above.
