What Is A Fully-Bundled Fixed Rate For Electricity?

What Is A Fully-Bundled Fixed Rate For Electricity?
What Is A Fully-Bundled Fixed Rate For Electricity?

When shopping for an electric rate for your home or business it is important to understand the difference between fixed rates and fully-bundled fixed rates. 

Now, most regulators in deregulated states force suppliers to have transparent marketing not to confuse customers. But, there is always an energy supplier or two that tries to get creative and trick customers into thinking they are getting a fixed rate. Buyer beware!

When you are signing up for a fixed electricity supply rate, it is important that the rate is a fully-bundled price. Electricity supply rates, in most states, have three major components: electricity, capacity, and transmission. These charges are outside of your local utility’s delivery fees. 

A fully-bundled fixed rate includes all three price components into a single price per kWh or $/kWh. Some suppliers will claim that a rate is fixed when a single component of the rate is fixed and the others show up as pass-through charges. It’s important to know these differences so that you sign up for the rate that you intended. 


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