What is an “unlimited usage” or “flat rate” offer? A supplier may offer a product that has “unlimited usage” or has a “flat rate” for electric generation, in which power used by the customer is neither based nor paid for on a kilowatt per hour (kWh) basis. Instead, a customer selects a plan with unlimited usage or a flat rate based on one monthly price for electric generation, consistent with all terms and conditions in the supplier’s contract. *
Also known as a “subscription rate,” an unlimited usage or flat rate offer may be customized to a customer’s specific usage. Customers considering such an offer are encouraged to ask the supplier:
- Are there pricing “levels” or “tiers” based upon the customer’s historical energy usage;
- Is there a limit to how much electric you can use? If so, what happens if you exceed this limit?; and,
- Is there a cancellation or early termination fee if you drop your service prior to your contract’s expiration date?
*Monthly pricing for unlimited usage offers would not include electric distribution charges on your monthly bill, which are separate and billed apart (by your electric utility) from suppliers’ fees for electric generation.