The Energy Plus Company has seen tremendous market growth since being founded in 2007. The company’s success is centered around their rewards programs which they built with household name corporations in the airline, hotel, and retail industries. In 2011 the company was bought by NRG, a fortune 500 company who owns several other retail brand energy companies. Energy Plus offers electricity service in New Jersey, Connecticut, Illinois, Maryland, Massachusetts, New York, Ohio, Pennsylvania, and Texas

Energy Plus has built their marketing campaigns around their ongoing rewards programs, similar to credit card reward programs; the more power you use the more rewards you will get. They entice people to sign up for their electric variable rate service, and in return customers can receive their choice from a variety of rewards including cash back, student loan payoff funds, airline mileage, or gift certificates to retail stores.

For customers looking to maximize their savings, the problem with the Energy Plus Company is that they not only charge a variable rate that has no limit to how high it can go, but they don’t even post what the initial variable rate will be when you get your first bill. You might get reward points or cash, but that money is coming from an inflated monthly electricity bill. In the north east markets, where the majority of the Energy Plus Company customers are located, smart shoppers can save a tremendous amount of money on their bills by taking the time to compare low fixed electric rates. In many areas savings are above 20%. For example, Illinois electricity consumers living in the ComEd area can currently save up to 29% versus the local default rates. However, according to customer surveys, the Energy Plus Company charges rates that are close to the utility default rates and sometimes more.

Their contract states:

“The variable rate may change each month and will reflect the cost of electricity, including energy, capacity, settlement, ancillaries, related transmission and distribution charges and other market-related factors; plus all applicable taxes, fees, charges, costs, expenses and margins. The rate may be higher than your EDC’s rate. EP does not guarantee any savings over the EDC’s rates for the entire term of this Agreement”

In conclusion, the Energy Plus Company has a successful marketing program going because their is a market out there of uneducated consumers whose eyes light up when they see the word “REWARDS”. However, in the end these consumers end up paying more money for the rewards they earn then they are worth. Smart electricity shoppers should focus on getting the lowest fixed rate available in their service territory.

The time and energy that it takes to compare electric rates can be overwhelming for some.  However, with a little research and education, customers in Texas, Pennsylvania, New Jersey, Maryland, Delaware, and Connecticut can lower the cost of their electric bill by comparing electric rate offers from electricity companies against the electric rates of the local utility.

Electricity customers attempting to compare electric rates should look at a few key elements for every offer:

1. Is the electric rate fixed or variable.  A fixed rate will secure the electric rate for a set period of time as stated in the electricity contract.  Variable electric rates will usually have low introductory offers, but will contain to guarantee as to how high the rate can go.

2. Meter charge.  A large meter fee (anything above $5) can make a rate appear low when really the electric company is just charging you more in another area of the bill.  The average size house uses about 1000 KWh a month.  A rate of $0.09 per KWh will equal a $90 bill.  Adding a $10 meter charge would be the equivalent of adding a whole penny ($0.01) to the rate.  So a $0.09 cent rate with a $10 meter charge is the same as a rate of $0.10.

3. Is any proportion of the energy you buy derived from green energy sources? Some people are only concerned about the price, but if you are interested in helping you environment you can request a portion of your energy to be generated from green energy (usually wind power).  There are 100% wind power electric contracts available, but usually you will be rate that is a little higher.

These are three of the main things to consider when taking the time to compare electric rates.

For a list of pre-screened electric rate offers, visit our ELECTRICITY PRICES section to find low electric rates in your state.