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Fixed rate v. fixed cost: Know the difference
In a deregulated state, you are offered the option to purchase electricity and natural gas from alternate energy suppliers instead of your local utility company. These suppliers often offer a fixed rate per kilowatt hour or per cubic foot for a specified period of time and for a specific quantity. While a fixed rate can produce some cost savings over the standard utility offering, the monthly cost of energy is still subject to the amount of energy you actually consume which is affected by weather and other factors. In addition, fixed rates do not take into account distribution costs which continue to be charged and collected by the local utility. The complexities and unpredictability of energy expenses still remain with a fixed rate agreement. Celeren’s fixed cost makes budgeting simple and accurate |
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