Electricity Rates 101

What changes with utility my bill when I get a new supply rate?

When you are on a  new rate from a competitive supplier, you keep paying your local utility company as usual. They continue to manage your bill, and deliver the same reliable electricity to your home. You'll just see the new supply rate and the name of your competitive supplier on your bill.

What happens once I'm switched to a new supply rate?

Once you are submitted on a new rate, you'll receive a confirmation email with the details of your rate (price/term/supplier). From there, you can anticipate the new supply rate to appear on your utility bill in  1-2 billing cycles. The switch time varies for each utility company.

When you switch to a new rate plan, your utility stays the same. There's no interruption in your service, you'll get your bill only from your utility, and you'll just see the new supply rate in the supply section of the bill. If we run into any issues submitting you onto a new rate plan, we will notify you of any action that is needed.

How does Arbor decide if a rate is better than my current rate?

When you link your account by entering your credentials, uploading a bill, or providing your utility account information and current supply rate, we are able to compare your current rate to what is available in the market. If there is a rate that is lower than your current rate, we will secure it for you if you are on Autopilot or send you a notification if you are not on Autopilot.

What does it mean when there are no rates available?

This means you’re on a good rate and we do not currently have any rates available from alternative suppliers in your area. Arbor continuously is looking for new rates so when one does show up, we will let you know.

Why do rates have a "term"? Am I locked into a contract?

Typically a fixed rate requires a contract for 6-18 months, but you are not locked in as you can cancel at any time and Arbor will reimburse you for any early termination fees incurred.

What happens when the rate plan is coming to the end?

Suppliers are required to notify you when your contracted rate plan is coming to the end of the term and they may include a renewal offer as a part of that notification. As an Arbor user, you can safely disregard that notice. If you have activated Autopilot, Arbor will automatically switch you to the best rate available from our energy supply marketplace. In the event that you have Autopilot off, we will inform you of your contract's impending expiration and provide recommendations for alternative plans for you to consider.

Can I really switch to a different energy rate?

Yes, so long as you live in an area with competitive electricity markets, including CT, DE, IL, MA, MD, ME, NH, NJ, NY, OH, PA, RI, and Washington DC. Within those territories, some areas are served by utilities that do not allow competitive energy rates, so enter your zip code with Arbor today or visit our eligibility FAQ page to see if we are available in your utility area.

What is a third party electric supplier?

A supplier purchases or generates electricity and then sells it to end users through the local utility grid, which is then reflected on the end user’s local utility bill. Suppliers are active in competitive electricity markets, where companies compete to offer electricity, just like cable or internet companies compete for your business.

What is a utility provider?

Utilities operate the electrical grid (the "poles and wires" company), which distributes electricity from power plants, over transmission lines, to your home. In most places, the utility is the default supplier, but in competitive electricity markets you can choose to buy electricity from a competitive supplier. You still receive the same reliable electricity and the same monthly bill from your utility, but at a different rate from the competitive supplier.

What is the difference between a fixed and variable supply rate?

Arbor only offers fixed rates, usually with a term of 6-18 months. Fixed rates provide price protection and certainty over a guaranteed period of time. Variable rates, on the other hand, fluctuate month-to-month, exposing you to unexpected price hikes.

What is a price to compare (PTC)?

The price to compare (PTC) is the utility’s default supply rate of an electricity bill that can be used to compare against other energy supply rates.

It's typically listed on your utility bill and may change periodically. When someone switches energy suppliers, the competitive supply rate replaces the PTC rate.

PTC may also be known as the Standard Offer Service (SOS) price.

How long does it take for Arbor to find me a new rate?

We’re typically able to find a better supply rate for our customers within 48 hours after signup. If Autopilot is enabled, we will automatically submit you onto the new supply rate to ensure expedited and maximum savings.

Brokerage timeline may vary depending on utility territory and your current supply rate.

When will I see my new rate reflected on my utility bill?

It typically takes 1-2 billing cycles for the new rate to take effect and display on your utility bill. This is due to processing time on the supplier and utility’s end.

We’re just as anxious for our customers to start saving and appreciate the patience extended awaiting the new rate to take effect.

Does Arbor find the best rates?

We’re able to provide exclusive rates to our customers through our supply partnerships. Sometimes, these rates may be different than what you see as available on a power switch site - either higher or lower - but the rate Arbor is able to offer will be fixed and lower than the default supply rate (PTC) of your utility company.

Here are just a few benefits of switching to a new rate through Arbor:

  1. Stable Costs: Your new fixed rate brings less uncertainty, making financial planning a breeze.
  2. No commitments: As always, you're welcome to drop the rate at any time and Arbor will cover any early termination fees (ETFs) incurred. If you keep your Arbor account open, Arbor will continue to look for another lower rate.
  3. Renewals: Upon the expiration of your current contract, Arbor will operate in your best interest to secure a rate lower than your utility's default supply rate. If no better rate is available, Arbor will work to move you back to your utility's default supply rate if you have Autopilot enabled.

Will I be switched to a new rate mid-term?

We currently do not switch supply rates during it’s term length. However, when your current contract term is nearing it's end, we'll start searching for a new competitive rate, compared against the default supply rate with your utility.

What if I change my supply rate myself?

If you have switched to a new supply rate plan yourself, please contact our support team at support@joinarbor.com with the new rate plan details so we may update your account appropriately. This will ensure we only act on new rate plans that are beneficial to you, with your new rate in mind.

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