Everyone wants to save money these days. Take some time to examine your monthly household bills. For example, look closely at your monthly electric bill. You may be able to save money by buying your electricity from a supplier other than your utility for a substantial savings.Check Electricity Wholesalers Houston

Your electric bill is actually a composite of many charges associated with delivering electricity to your house. To simplify — you can lump all charges into three categories:

-Supply charge. The electricity delivered to your house is either generated by your utility, purchased by your utility from another company, or is a combination of both internally generated and purchased electricity. That is your supply charge. Somewhere on your bill is your “price to compare” — given in cents per kilowatt-hour of electricity. It is the rate you are being charged just for electricity — sometimes referred to as “commodity charge.” Multiply your “price to compare” times the number of kilowatt-hours of electricity you use to determine your supply charge.

-Fixed charges. Every month your utility charges you a fixed amount for being a customer. This amount does not vary depending on the amount of electricity you use. It covers the utility’s costs of maintaining you as customer, even if you used “zero” electricity. Your state may also impose a fixed tax on your bill, regardless of the amount of power you use.

-Variable charges. All other charges on your bill vary depending upon how much electricity you use. For example, take your electric transmission and delivery charges. Your bill calculates this charge for you by multiplying the kilowatt-hours you used by the rate for electric transmission and delivery. Other charges are computed in the same way.

Here’s how you can save on your supply charge

Call your electric utility and ask if they offer supply choice. If they do, ask for a list of alternate suppliers and their rates that you can compare with your own utility’s “price to compare.”

You may find that you are already getting the best deal. Or perhaps the savings will be so little that it’s not worth your while to contract with an alternate supplier.

If you do find that your savings justify switching to an alternative supplier, you’ll have to contact that supplier in order to sign up. Read the terms of the contract carefully. How long will the supplier guarantee this rate? What happens at the end of the contract period? If everything looks o.k. and your potential saving looks good, go ahead and sign up and save!

Take the time to dig into the rates you are being charged on your electric bill. Contact your local utility and explore your options. You can save money on your electric bill.