5 Bright Ideas To Save Money On Your Electricity
February 26, 2014A few weeks ago, I was at a friend’s house when I noticed a box of CFL light bulbs on his dining room table. I asked my friend what a box of brand-new light bulbs was doing on his table, and he told me that the box was waiting for him on his doorstep when he moved in a few weeks earlier. Another friend of mine who was standing nearby chimed in to tell me that he had heard that the local utility company was giving away free CFL light bulbs as part of a larger effort to make North Carolina a cleaner, more energy efficient state.
Well, I hadn’t heard anything about that, but the idea of getting a big box of free light bulbs sounded pretty cool to me, just not cool enough for me to do anything about it. I quickly forgot about it until I received a promotional flyer in the mail offering—you guessed it—free light bulbs! All I had to do was visit my utility company’s promotional website and verify my eligibility to participate in the offer. Within 4-6 weeks, I should be getting my box of new bulbs.
Now it may not seem like much but according to my local hardware store, the going price for one of these bulbs is about $7. That means my box of 15 is worth over a hundred bucks (not to mention the money I’ll save by using less energy)! I don’t know how long this promotion has been going on but it got me wondering what other things I don’t know about my utility company that may be costing me money. Here are a few my planner friends and I came up with:
1. Balanced payment plan
Your utility provider probably offers some type of balanced payment plan that lets you pay a fixed amount for a certain period of time based on past usage. For example, my utility provider takes my average usage over the last 12 months to set my monthly bill for the next 12 months. After 12 months, an adjustment is made and a new monthly amount is set. It may not save me money per se but by keeping my bill fixed each month, I avoid the seasonal highs and lows, which keeps me on budget and prevents me from having to dip into my savings (or worse yet, to borrow money) when my usage spikes.
Bright idea #1: Contact your provider to see if they offer some sort of level payment program.
2. Negotiate your energy bill
As you know, I’m a big fan of Dave Ramsey and I’m a big proponent of not paying retail, but it never dawned on me to consider negotiating my electricity bill. That’s exactly what billcutterz will do. They work with service providers, including your electricity provider, to negotiate group discounts which they in turn pass along to you. Whatever savings they can get you, they split the difference so it’s a win-win for everyone.
Bright idea #2: Visit billcutterz.com to see if they can reduce your electricity bill through negotiated discounts.
3. Understand Smart Meter technology
You may live in a state that has enacted smart metering legislation as a way to manage energy costs and consumption. If so, your utility company may be installing “Smart Meters” on your home. These meters measure your energy consumption throughout the day and some utility companies charge higher rates during peak hours. If possible, plan to run energy-intense appliances like washing machines and dishwashers at night during off-peak hours.
Bright idea #3: If you have a smart meter on your home, familiarize yourself with the pricing schedule and manage your energy consumption accordingly.
4. Shop around
While many consumers are restricted to purchasing power from the energy supplier that owns the electrical equipment in their area, some states have opened up the field of energy suppliers to consumers through deregulation. Deregulation is intended to keep energy costs competitive by promoting competition among energy suppliers. If you live in a state that has enacted energy deregulation, you should periodically shop available suppliers for the best rates based on your energy needs.
Bright idea #4: Visit www.shopmypower.com to see what rate plans are available in your area.
5. Take advantage of savings and rebate programs
Many power companies, including Pacific Gas & Electric, offer rebates when you make energy-efficient home improvements such as installing new insulation or a solar water heater. Discounts and rebates may also be available when you purchase Energy Star-certified appliances. Have an energy audit performed on your home (or do one yourself) to see where you may be losing money in energy inefficiency.
Bright idea #5: Call your power company or visit their website to see what energy saving programs they currently offer.
Saving money on your electricity doesn’t have to mean living in the dark. It may be as simple as visiting a website or making a phone call. That’s almost as good as getting a free box of CFL light bulbs.