Like most people looking for a residential electricity plan, you scour the internet in search of the cheapest available rate. When you finally find a list of offers, an enticing 1.2¢ rate appears at the top of the search.
1.2 cents! Currently, wholesale electricity prices fall into the 2-3¢ range - making a 1.2¢ rate seem to good too be true. I guess that means, even experts in energy are suspicious of how such a low rate can be possible.
I needed to ask myself a few questions. Is this 1.2¢ rate actually cheaper than say a 5.5¢ rate? And if so, how do those numbers add up? Even though I asked myself these questions and had a general idea of the answers before contracting my residential electricity, I decided to sign up to get the answers firsthand.