Understanding Contracts
Know the lingo when it comes to kilowatt-per-hour rates and minimum contract term lengths.
Electric Generation Supplier Contract Summary
Each electric supplier must now give customers an Electric Generation Supplier Contract Summary when they enroll in a new contract. This is an easy-to-read, one-page document which includes the following information:
| Term | Description |
|---|---|
| Electric Generation Supplier Information | Name, telephone number, website, etc. Plain language statement that the supplier is responsible for generation charges. |
| Price Structure | Fixed or variable. If variable, based on what? If variable, how often is the rate expected to vary? If variable, give any applicable ranges/ceilings. |
| Generation/Supply Price | $/kWh or ¢/kWh. If variable rate, the first billing cycle's rate. Any introductory rate with length of term. |
| Generation Price at Various Usage Levels | Price per kWh for usages at: 500 kWh, 1,000 kWh, 2,000 kWh. Required only if the price varies by usage and/or there are fees in addition to the per kWh price. |
| Statement Regarding Services | Plain language that the supply price may not always provide savings to the customer. |
| Deposit Requirements | Any deposit requirements necessary for a customer and any terms associated with that deposit, in plain language. |
| Incentives | Any bonuses, discounts, cashback, etc., offers and any associated terms, in plain language. Required only if the supplier is offering any special incentives. |
| Contract Start Date | Plain language regarding start of EGS service (meter reads/billing cycles/etc.). |
| Contract Duration/Length | In months, billing cycles, etc. |
| Cancellation/Early Termination Fees | Yes or no. If yes, describe the amount of the fee and how to avoid that fee, if possible. |
| End of Contract | Treatment of customer at end of contract. Timing of notices. |
| Right of Rescission | An explanation of the customer's 3-day right of rescission and how to exercise this right. |
Canceling an Agreement
Before switching suppliers, carefully review your contract's disclosure statement to see if there are any penalty/switching fees or cancellation fees. Call your current supplier if you are not sure.
Switching back to your electric distribution company comes with no cost.
Important Note
Always review your contract terms before making any changes to avoid unexpected fees.
Check for Fees
Review your contract for cancellation penalties
Contact Supplier
Call your current supplier for clarification
No Cost Return
Switch back to utility with no fees
Contract Renewal Notice
You will receive two renewal notices before your contract expires - one 45-60 days prior and the other 30 days prior.
First Notice
45-60 days prior to expiration
Initial notification that your contract is approaching expiration with basic information about your options.
Option Notice
30 days prior to expiration
Detailed notice with specific changes, new prices, and clear action steps you must take.
IMPORTANT
If you choose to take no action with your renewal and options notices, your rate may change. For example, a fixed rate may change to a monthly variable rate. If you have a variable rate, once the term expires, you may be moved to a different variable rate that could be higher.
Make sure you read these notices, as they will assist you in making the decision to stay with your current supplier or shop for another supplier.
What's Included in the Option Notice
- Specific changes to the terms being proposed
- Information on new prices
- Explanation of customer options
- Date by which action must be taken
- Contact information for Commission
- Office of Consumer Advocate (OCA) details
Frequently Asked Questions
Common questions about energy contracts and switching suppliers
What if my current contract has an early cancellation fee?
Check your disclosure or contract summary to see if there is an early cancellation fee. You can also contact your current supplier and ask – their phone number is on your bill.
If you do have an early cancellation fee, you can still switch suppliers, but if you do this before the end of your contract you may have to pay the early cancellation fee (early cancellation fees do not apply in the last 30 days of your contract – so you are free to shop during this time).
Can I switch my generation service from a competitive supplier back to my electric utility?
Yes, you just have to contact your electric utility and request to return to your default service.
You should review your agreement with your current supplier to see if there are penalties for early cancellation if you wish to do this in the middle of your current contract. If you are not sure, call your current supplier.
How will I receive my two contract renewal notices?
You will receive your first notice depending upon how you agreed to receive notices from your supplier – check your disclosure or call your supplier if you have questions about this.
You will receive your second notice in writing by U.S. postal mail.
What happens if I do not respond to the options notice?
It is important that you respond to your notices and take action. If you do not respond to your contract expiration notices, your supplier can continue to provide you with service – but it may be at different terms and prices.
Your notices will explain these new terms and prices.
Will I be notified of price changes if I am on a variable rate?
If your contract with your supplier expires and you do not respond to your expiration notices, your supplier can continue to serve you – but your terms and price may change.
The supplier may even place you on a variable rate – but if they do, they must then provide you with advance notice of any future price changes.