Compare two electricity plans side by side. Enter rates and fees for each plan to see which one costs less for your monthly usage level.
In deregulated electricity markets, consumers can choose between multiple electricity providers and plan types. Comparing plans requires looking beyond the headline rate to include fixed monthly fees, energy charges, and any minimum usage requirements or other surcharges. A plan with a lower rate but higher monthly fee might cost more for low-usage households.
Common plan types include fixed-rate (locked rate for a contract period), variable-rate (changes monthly with market), indexed (tied to a benchmark price), and prepaid plans. Each has different risk/reward profiles. Fixed-rate plans provide predictability; variable plans may save money or cost more depending on market conditions.
This calculator compares two plans head-to-head at your usage level. Enter the rate and monthly fee for each plan to see which costs less. You can also model different usage levels to see where the break-even point is between plans.
By calculating this metric accurately, energy analysts gain actionable insights that inform equipment selection, system design, and operational strategies for maximum efficiency and savings.
Choosing the cheapest electricity plan requires comparing total cost, not just the per-kWh rate. This calculator shows the true monthly cost of two plans at your usage level, accounting for fixed fees. Data-driven tracking enables proactive energy management, helping organizations reduce operational costs while progressing toward environmental sustainability goals and carbon reduction targets.
Monthly Cost = (kWh × Rate) + Monthly Fee Savings = Cost_A − Cost_B
Result: Plan A: $130 vs Plan B: $130
Plan A: 1,000 × $0.12 + $10 = $130. Plan B: 1,000 × $0.105 + $25 = $130. At 1,000 kWh, both plans cost the same. Below 1,000 kWh, Plan A is cheaper; above 1,000 kWh, Plan B is cheaper.
In deregulated states (Texas, Pennsylvania, Ohio, etc.), consumers choose their electricity provider. In regulated states, the local utility is the only option. Even in regulated markets, you may have rate plan choices (flat, tiered, TOU) from your utility.
Minimum usage charges penalize low-usage customers. "Free nights/weekends" plans often have higher daytime rates. Introductory rates that expire after 1–3 months can lead to bill shock. Delivery charges are the same regardless of your chosen provider.
Use your state's official comparison website (e.g., PowerToChoose.org in Texas). Enter your zip code and monthly usage. Sort by total estimated cost, not rate alone. Read contract terms carefully, especially cancellation policies and rate expiration dates.
Fixed-rate plans provide price certainty and protection from rate spikes. Variable-rate plans may be cheaper on average but carry the risk of sudden increases during extreme weather or high-demand periods. Risk-averse consumers generally prefer fixed rates.
Calculate total monthly cost at your typical usage (rate × kWh + monthly fees). Also check at low and high usage months to see if the ranking changes. A plan with a higher fee but lower rate is better for high-usage households.
The break-even is where both plans cost the same. It equals: (Fee_B − Fee_A) ÷ (Rate_A − Rate_B) kWh. Below this usage, the plan with the lower fee wins. Above it, the plan with the lower rate wins.
Most contracts include an early termination fee ($50–$200). Calculate whether the savings from switching exceed the termination fee over the remaining contract period. Some plans offer a grace period or no termination fee.
Prepaid plans have no credit check and no deposit, but rates may be higher. They're useful for renters, people with poor credit, or those who want strict budget control. Compare the effective rate against traditional plans.
An indexed plan ties your rate to a market benchmark (like wholesale electricity prices) plus a fixed markup. Rates fluctuate with the market but are more predictable than pure variable plans. They can be cheaper than fixed rates in stable markets.