One of the steps that I had taken to lower my bill was switching from the default utility company (PSE&G) to a third party provider. I had chosen
Viridian, partly because they have a flexible plan with no commitments, very low customer complaints, and a floating rate that was lower than PSE&G despite being greener (20% wind energy derived). They were also donating a small amount to a charity I am affiliated with.
I estimated, based on my consumption patterns, that I would save $75 annually, although only about $25 in savings would be coming in the winter months. As noted in the blog, savings in my first bill, received in October (without the 10% off promotion) were about $5. The rate difference, $0.0125, or over 10%, was as advertised three months prior.
However, in the past few months, the Viridian rate has been only 1% lower than PSE&G. My cumulative savings are only $8. Is this a market driven phenomenon, or was I falling for a bait-and-switch?
There is good news and bad news. Good news is, Viridian's rate differences are not just lesser for me, they are lesser in general. In fact, the company's website now has historical rate comparisons for many states and state utilities, including
NJ,
MD,
CT and
PA (they recently entered the NY market.) The charts look very similar to mine—a huge difference through fall 2010, followed by a convergence in rates. So the company itself is reputable and treating me fairly.
The above links are from Viridian's website. You can continue to use them to monitor how the company is performing versus PSE&G and other utilities.
The Department of Energy does not provide recent data for
retail electricity prices (latest data is through November), but the trend sure is higher. My guess is, since coal and natural gas (from which over 70% of electricity is derived) prices are trending up, electricity market prices are up as well. This increases the cost of companies like Viridian. However, utilities like PSE&G, which are a 3-year smoothed average, are still climbing down their price charts. So, market forces are at work here. Which is the bad news.
Am I slightly disappointed with my meager savings? Sure. However, I am glad on two fronts: firstly, I am still saving a few cents each month. Secondly, the electricity I consume is a 20% green, renewable product, and that does put my mind a little more at ease. I have so far never had to speak to a Viridian rep, which is a great thing because I have not noticed any change in the electricity I get in my home. My bill is also the same one I get from PSE&G. Even my auto-debit is unchanged.
Bottomline: If someone asked me today if I would recommend Viridian, I would say if savings is all you care about, then they may be too minor, so don't bother. However, if you are keen on using a greener electricity product, and save a little green along the way, then switching is the way to go.
Hurricane Sandy has taught people from New York and New Jersey that not only is it crucial to have an emergency fund, but it is also important to save money in a few liquid, and often tax advantaged, emergency funds for different purposes. Being an avid saver, here are some savings accounts I am considering using for 2013. Surprisingly, some of these accounts are usually not thought as emergency accounts, but they are!
