Electric rates, what's the catch?
 

I just got my latest Eversource bill, a new personal record, by a long shot. Which has me looking into alternative suppliers at a lower rate. Can someone here who knows more about all this than I explain how this all works.

A few years ago, I did switch to Direct Energy. They gave me a lower rate than Eversource, until the contract time expired. Then the rate jumped dramatically, so with no change fee, I moved back to Eversource.

Now looking at the rates offered again, found the info in these links
https://www.energy.nh.gov/engyapps/c...ice=Eversource

https://www.directenergy.com/nh/elec...um=NHStateSite

Feels like I'm missing something. The 3-year, 0.01699 rate with no cancellation fee seems like a no-brainer. But I have to believe there is a catch somewhere that's not described in the small print. Is it really as simple as you are just betting that the rate will not go lower over that time period? With no cancellation fee, what's the risk? Do they just count on people not remembering to check and switch if the rates fluctuate?

Will Eversource be charging a fee for switching back?

As far as I know, there's no catch. I switched from Eversource to Direct Energy on the recommendation of Thinkxingu as I trusted his research. We could not find any cheaper supplier so it did seem like this was a no-brainer. My electric bill went down drastically due to switching to Direct Energy and some very frugal lifestyle changes. My November bill was just $55! Signing up for Direct Energy was simple and there were no hitches with the billing.

Nhec
 

May I ask if anyone can shed light on the below.

Currently we use NHEC for electricity where the bill consists of a bunch of fees each month:
1. Membership Charge ~ $30
2. Delivery Charge ~ $10
3 System benefit Charge ~ $1.50
4. Regional Charge ~ $6
5. CO-OP Power at .169 per kWh

So do these other options charge all these fees OR is the only line item in question from different providers line #5 and NHEC is always the actual Utility and thus the fees are always present? Just trying to understand how the whole thing works...

NHEC owns the lines to your house, the other suppliers use those lines, so the only fee that changes is their power replaces CO-OP power.

Nhec
 

Got ti >>> thanks so much!

Thanks to all for the answers so far. But it still leaves me wondering. If I just use the Direct Energy example above, they offer 3 different packages with 3 different prices. If there are no change fees or other restrictions, why would anyone ever choose anything other than the cheapest one?

Because if you think prices will only go up... you may want to lock in a price for a longer period of time.

I understand John. But there doesn't seem to be any risk. Lock in the lowest price you can for as long as you can, and if the prices go down, cancel without penalty and pick another supplier. I'm still not seeing the downside, but my gut tells me it's there somewhere.

The only thing I question is will your current supplier increase their "delivery charge" or other non KWH charges once these changes are made??... There is nothing that locks those prices in...The only thing I can say is you can supposedly opt out with no penalty charges...It seems like a no brainer to me...but I do question it as you do...

Dan

I read the Direct Energy contract pretty carefully. I believe Thinkxingu did as well and I hope he will chime in. I couldn't see any downside. I was cautious like you, but I'm very glad I switched to Direct Energy. I'm kicking myself for not doing this long ago. They had an even cheaper price before the current $.1699.

The terms of service are here: https://directenergydocuments.gesc.c...Doc=DERNHDTDTC

PLUS: you can earn $50 for each person you refer who signs up with Direct Energy. The friend also gets $50. Would you like me to refer you?

I've just finished reading the fine print in the terms too (twice). Still not seeing a downside. What I do find interesting is that in the section about recission and cancellation, there is nothing about cancellation. No information about how you could cancel or the penalty if you do so. Makes me wonder if the catch is that you can't cancel once you've locked in the contract. But if so, I'd expect they would have to explicitly mention that or describe the penalties for early cancellation.

No cancellation penalty, but I thought I saw that some of the offers included a front load to "cover the cost of getting you into our billing system" or some such. Which energy prices have you seen go down in the last few quarters that lead you to think there will be substantial drops in the future? Maybe if there's major change of direction in Washington DC, but that's years away, and companies who build related facilities won't be quick to invest in new plants if there's no assurance that they can't run for 20-30 years to get their money back.

The website clearly says "No early termination" for the 36-month plan:
https://www.directenergy.com/nh/elec...ve-brighter-36

I know it's hard to believe there's no downside. Maybe we've gotten used to being exploited by Eversource, phone companies, etc. and we're cynical. To make money, Direct Energy has to make you a better offer than other companies. I think they've done that successfully.

I think the last discussion I saw on the supply charge was more of the process by which Eversource is using to get the best rates.

Something about how NHEC has better rates due to a better process.

Since even these other retail suppliers are contracting from the same generator sourcing... it has to be something specific to the process being used.

And according to EnergyBot, NH is the highest average (differs accross suppliers in the State) in the country. Higher than Maine or Vermont, and higher than any other member on the ISO-NE grid pulling from the same generating sources.

I think that means our problem is in Concord.

I will be changing. As others have noted, I'm not seeing a downside as I am willing to bet that energy prices will not be going down anytime soon (if ever).

But, I'm still not seeing what you reference above. The site clearly says "No early termination fee". Termination is not mentioned anywhere else on that page, nor is it mentioned in the detailed Terms & Conditions other than in the section describing how Direct Energy can terminate from their side.

I suspect that the way this all works is that once you sign the contract, if you attempt to change your supplier to another one, you will be told you can't change until your contract term is up. That would seem to make the most sense.

Sailin, check your private messages.

I’m In!
 

I just signed up as well, both my mainland home and island home. I could see no reason not to…

Dan

What is their kwh rate? I'm paying .169830 with NHEC now.

I just got 0.16990 for 30 months.

Here's a screen shot of that page:

Attachment 17912

Thanks I think I will stay with NHEC

Anyone else want to sign up with Direct Energy using my refer-a-friend code for a $50 gift card for both of us? Message me and I'll send you my code. Thanks!

I just checked it out, not available at my zipcode, I'm in the co-op too.

Who has that rate?

No Autofill
 

Just an fyi...Make sure you manually type in your address on the form do not let "autofill" fill it in as mine initially said the same thing. Once I manually typed it in all was good.

Dan

Still no bueno. Not available in my area.

Start by going here https://www.energy.nh.gov/engyapps/ceps/shop.aspx . As others are posting, it depends on your electric utility company and location. For most, it will be either Eversource or New Hamphire Electric Cooperative.

In my case, it's Eversource (though most of the residences on Merrymeeting are NHEC)

Does EnergyBot look at average TOTAL bill or just the power used/kwh rate? It occurs to me that we are still paying, one way or another, for Seabrook. Even though that power could be sold in other states, I think only NH ended up paying the stranded costs and whatever tax manipulation shows op in our bills.

Total. Stranded Recovery Cost would mostly be Merrimack Station (but still a NH policy rather than US).

And the difference today's average NH vs CT is 1.180 cents, while SRC is .268 cents.

It is something we are doing different than our neighbors.

Years ago (20 or so) I had the opportunity to be a member of the NH Business & Industry Assoc. Even at that time we were always discussing the fact that NH had the highest rates in the northeast at meetings. So, not a new issue. Can’t remember the reasons because at that time my focus was other areas.


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But NH didn't at that time...
It was a false talking point placed into the media.

MA, CT, and RI were all higher than ours.

Hence why the 1200 mWh of power to be transmitted down the Northern Pass and into Franklin NH was most likely going to be sold to CT.

Hate to burst your bubble but in 2005 the average residential New England state electric rates per kWh were:

NH - 0.13990
Ct - 0.1364
MA - 0.1218
VT - 0.1296
ME - 0.1323


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I missed this thread, too. [emoji3525]

I hope y'all have signed up as it's a great deal. I only wish I'd gotten in when it was $.12.

Though, with Sailin's motivation, I'm using ~36% less energy, so I'm still paying less than last year, which is pretty good.

I had connected with Sailin to let her know about it but didn't post here because I assumed most were on NHEC. Sorry for the oversight.

In any case, if you sign up, use Sailin's referral code to hook her up. If you already signed up, you can still call Direct Energy to put in her code.

Sailin, why don't you go ahead and post your referral here so people can hook you up AND get right to the link they need.

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NHPUC agrees with your 2005 rate. But only for Eversource Residentail rates. It doesn't compile the rate from the other utilities and combine it in a pro-rated format to come up with the State Residential average.

https://www.puc.nh.gov/sustainable%2...te%20Info.html

Balletopedia did a study due to energy being such a strong political football during that era (probably will do another). It compiled Residential rates on a pro-rated format across State utilities.

https://ballotpedia.org/Historical_s...tricity_prices

Nebraska, because electric rates are always political in that State, keeps an archive of across the board rankings (residential and commercial pro-rated).

For 2005, they have NH ranked as more expensive than CT.
NH 12.53 CT 12.06
https://neo.ne.gov/programs/stats/204/204_2005.htm

But when NP was proposed in 2011...
NH 14.74 CT 16.35
https://neo.ne.gov/programs/stats/204/204_2011.htm

In 2019, when Eversource abandoned any hope of NP...
NH 17.15 CT 18.66
https://neo.ne.gov/programs/stats/204/204_2019.htm

For the last full year (2021)...
NH 17.37 CT 18.32
https://neo.ne.gov/programs/stats/204/204_2021.htm

So the anti-NP argument that the electricity would most likely be sold into the higher CT market, according to the numbers holds true. Obviously, it does not take into consideration that electricity is fungible, and that more sourcing with static demand should essentially make prices go down. But the base argument presented by the opposition was reasonable based on the data at hand.

You can also find the other States there...
But I expect that NH's ranking will hurt this year... and next.

Direct Energy
 

We just received our first bill since switching suppliers to Direct Energy. We saved just about $100.00 for the same usage as the the previous month with Eversource.

Signing up for Direct Energy sure looks like a winner to me! Thanks Merrymeeting for posting the info here on Direct Energy!

Dan

Lower rate
 

NHEC rates just went down this month to .137830 kWh from .169830 kWh :)

Unfortunately I have Eversource and their rates are still above .20 per KWH. When I signed up for direct energy their rates were .1699 per KWH, they are now at .1299 per KWH. I am going to call them to see if I can once again switch plans. If not, I may cancel and sign up for another that is at the same price. Either way .1699 is still cheaper than Eversource….

Dan

Membership Fee
 

I also just noticed NHEC's monthly membership went up from $31.02 a month to $33.03 a month, it's always something.

Thanks for the info, Dan—I just called and was offered the 13.69¢ for 36 months. I'm not sure if the 12.99¢ is only for new customers, but it was for less time anyway, so I didn't bother asking.

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ENH Power
 

ENH Power is offering a 0.1199 rate for 6 months BUT with a $100 early termination fee.

Bear in mind that the power purchased from an outside supplier is only affecting the energy portion of your total kWh cost and thus the reduction will be a little less than it looks like from the outside. To figure out your actual total kWh cost you take all the multiplier entries (look for an x) that show up on your billing and add them together.
The total residential cost per kWh (<400 amp service) for the Co-op right now is 21.274 cents per kWh, and the energy charge portion makes up just 13.783 cents of that total. Their rate did just drop by ~3 cents from the winter high, but the fixed monthly membership fee has risen to $33.03.
The Eversource is a little higher at 29.636 cents per kWh but their fixed customer charge (membership fee) is lower at $13.81 per month. The energy portion of an Eversource bill is now 20.221 cents per kWh.
If you can get a favorable energy rate from an outside supplier it likely makes sense for an Eversource customer, but for a Co-op customer it may not be worth a lot of effort.

I called and had my rate changed to same as you Think. No charge whatsoever to change. It was a no brainer and another 20% savings! Win/Win

Dan

I'm honestly surprised at how easy Direct Energy has made the transition and how accessible their customer service has been. It's pretty rare to not have to jump through hoops these days, especially to save money.

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They always make it easy to change to them but they make it more difficult to get out.

Not Direct Energy—at least not so far. They changed my rate with a five-minute phone call and have no termination/cancellation penalties for their plans.

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I've never dealt with Direct Energy but most of the people I've talked to that have switched to other electric suppliers have told me they make you jump through hoops to cancel out.
One of my friends told me they canceled out of a contract because their initial plan expired and the rate went sky high. But even after she canceled they kept charging her credit card. She finally canceled her card, I'm not sure if she ever got her money back. I don't know what company it was?
I had the same issue with a cable Company, canceled and they kept charging my credit card.
My advice is don't give them a credit card, have them send you a bill. Best of luck!

I’m not seeing that either with Direct Energy. As a matter of fact when I called I was given three options…#1 new signup for direct energy, #2 contract termination, #3 customer service. Took option 3 and actually talked to a live person and like you said within 5 minutes and no extra charge or any “phone salad” whatsoever, my plan was changed to cheaper rate. If the rates go down again I’ll cal again and request another change! Win / Win

Dan

Hence why I posted about my positive experiences.

I hadn't switched to a different provider until this past August for the reasons you mentioned, but Eversource's rates were simply too high to not give it a go.

So far, I'm very impressed with Direct Energy.

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Eversource Rate Drop
 

Eversource said Thursday that, if approved by the New Hampshire Public Utilities Commissions, its new rate for residential customers would drop from 20.2 cents per kWh to about 12.6 cents per kWh, a drop of 37.6%.

Eversource said that rate would be down from 22.6 cents per kWh at the same time last year, a drop of 44.2%. The effect on a customer's total bill will depend on how much energy is used, their rate category and weather conditions.

https://www.wmur.com/article/eversou...61423/44213724

Natural gas prices are down roughly 60% for the year.

Pretty much the reason for the expected price drop.

Just a note that Direct Energy is offering $.1179 still, and they continue to offer excellent customer service for us.

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Others have indicated in earlier posts that it's possible to change your Direct Energy plan with a simple phone call? Still true?

Also, does anyone understand how all the different plans work? As examples, Direct Energy is currently offering 5 plans to chose from. Why would you pick any plan other than the currently cheapest one, especially if you can change plans with a phone call?

Data source: https://www.energy.nh.gov/engyapps/c...ice=Eversource

Don't ask me for stock picks :rolleye2:

The last time, yes, it was a simple call to change. I've heard chat is easy, as well.

In terms of choice, it's usually a combination of current status, time offered, cost, and source of energy. For example, the rate I posted above is a web special for new members. Other options include green power generation options (usually higher) and shorter/longer terms.

I always opt for the lowest price because, most likely, things will change before the end of the "contract."

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I called and had my rate changed to a lower rate. It was easy and they were very accommodating. There was no downside to switching to direct energy everything has been positive. Extremely glad I changed!

Dan

Add me to the list of those who've been able to change rates/plan with Direct Energy. Now getting a lower rate than when I signed up. Couldn't have been easier. I didn't even need to make a phone call. Did it in about 2 minutes with their online chat feature.

Easy Peezy!

Second Consecutive Rate Cut Coming for NHEC Members
by NHEC | Jun 30, 2023 | Rates, Uncategorized
PLYMOUTH, NH – The Board of Directors approved this week the second consecutive rate cut in a year for most New Hampshire Electric Cooperative (NHEC) members.
Beginning August 1st, the rate change will result in an overall bill decrease of 7% (or $10.03 per month) for the typical member using 500 kWh of electricity per month. The typical 1,000 kWh member will see a total bill decrease of 8% ($20.27 per month).
This most recent decrease comes on the heels of a February 2023 rate reduction that resulted in a total bill decrease of 9.3%. It is also a welcome sign that wholesale electricity prices continue to ease in New England, following a turbulent period of sharp increases in 2022.
The August 2023 change includes a decrease to the Co-op Power rate, which reflects the actual cost of power that NHEC purchases for use by its members. The new Co-op Power rate will be 11.42 cents per kWh and will be in effect through January 31, 2024. While there will be a slight increase to the Regional Access Charge, the overall bill will decline for most members.
“One of the best things an electric cooperative can do for its members and communities is to keep electric rates affordable,” said NHEC President/CEO Alyssa Clemsen Roberts. “That’s been a challenge in New Hampshire recently, and we’re very pleased to be able to offer another rate decrease to our members.”
For more information about NHEC’s rates, including a current table of rates, please visit our website: https://www.nhec.com/rates-tariffs/

Somewhat tangential topic, but does anyone know why most (all?) NH electric utilities do not offer off-peak period rate options? Is it legislated for some reason?

https://www.eversource.com/content/d...mary-rates.pdf

Go down to R-OTOD 2

Thanks. That may indirectly answer my question. I haven't done the math but looking at the peak/off-peak rates compared to the standard rates, and adding the monthly charge for the service, doesn't look like it would be worth the hassle to the average customer.

Clearly Eversource isn't pushing this as there is no mention of it being an option on my account or on their website. I assume you would need to call and ask for it.

Anyone out there actually done this that can provide some insight?