It’s no secret that the cost of electricity can vary widely from month to month.
Most electricity customers discover this firsthand if they have signed up for a month-to-month electricity contract. There are natural price variations that happen each month depending on factors such as customer demand and electricity fuel generation costs. To avoid these price swings, most residential electric customers choose an electricity plan that locks in a favorable rate for a fixed length of time.
Contract term lengths with your electricity provider can be as short as 3 months or as long as 5 years, with the most common generally ranging from 6 months to 2 years. You may think the longer contracts are the better deals, but are they? What is the best length of an electricity plan for you?