Electricity Plan Cost Comparison — Deregulated Markets

Compare electricity plans side by side for deregulated markets. Factor in base charges, per-kWh rates, contract terms, and early termination fees to find the cheapest plan.

Mathematical Audit

Electricity Plan Cost Comparison Formula

Each plan's total cost is calculated by combining the base monthly charge with the per-kWh usage charge, then projecting over the contract period.

Monthly Cost = Base Charge + (Monthly Usage kWh × Rate per kWh)
Annual Cost = Monthly Cost × 12
Contract Cost = Monthly Cost × Contract Length + Early Termination Fee
Effective Rate = Monthly Cost ÷ Monthly Usage kWh

In deregulated markets, base charges can vary from $0 to $15+ per month. Always compare the effective rate (total cost divided by usage) rather than just the advertised per-kWh rate.

Operational Guide

How to Use the Electricity Plan Cost Comparison Calculator

1

Enter your monthly electricity usage

Check your most recent utility bill for your average monthly kWh consumption. The U.S. average is about 900 kWh/month.

2

Input details for each plan

For each plan, enter the monthly base charge, per-kWh rate, and any early termination fee. Enable a third plan for broader comparison.

3

Set the contract length

Enter the contract length in months to see the total cost over the full contract period.

4

Compare results

Click calculate to see monthly, annual, and contract costs side by side with the cheapest plan highlighted.

Real-World Scenario Example

"A Texas household using 900 kWh/month compares Plan A ($10/mo base + $0.12/kWh) vs Plan B ($0 base + $0.14/kWh) on 12-month contracts."

Inputs

monthlyUsageKwh:900
planAName:Fixed Rate
planABaseCharge:10
planARatePerKwh:0.12
planBName:No Base Fee
planBBaseCharge:0
planBRatePerKwh:0.14

Result

Plan A costs $118/mo ($1,416/yr) vs Plan B at $126/mo ($1,512/yr). Plan A saves $96 per year despite the base charge.

Important Disclaimer

These estimates are for educational purposes. Actual electricity costs depend on your specific plan terms, usage patterns, and local utility regulations. Always read the full Electricity Facts Label before signing a contract.