What Is a Fixed Electricity Rate?

What "fixed" locks — and what it doesn't

Every residential electric bill has a supply portion and a delivery portion. A fixed rate applies to the supply portion only:

• What is fixed: the price per kWh for the electricity itself, for the length of the term. A rate of, say, 12¢/kWh stays 12¢/kWh whether wholesale prices rise or fall during those twelve months.
• What is not fixed: your total bill. Usage still varies with weather, household size and habits — a fixed rate protects the price, not the quantity. Delivery charges are regulated and unchanged either way; taxes and utility cost-recovery riders still apply.

So a fixed rate is best understood as certainty about price, not a guarantee about the total bill or about savings.

What you're trading away

The honest trade: if your utility's default supply rate falls below your fixed rate, you keep paying the fixed rate until the term ends. What you buy in exchange is protection against increases — and, in markets where the default rate resets periodically or floats with the market, protection from surprises. Whether that trade is worth it depends on the fixed offers available for your utility when you look, and that is exactly why the rate should be quoted to you directly, with the term and conditions stated out loud.

Where fixed rates come from

In the seven markets PowerRelief serves — Maryland, Pennsylvania, Washington, D.C., Massachusetts, New Jersey, Ohio, New York — residential customers can buy supply from a licensed competitive supplier instead of the utility's default product. Suppliers must be licensed by the state, and enrollment must be confirmed by you through a recorded third-party verification handled by an independent company. Nothing changes on your account unless you confirm.

What happens when the term ends

The contract states what the rate rolls into at the end of the term — and it should be stated to you before you agree. At term end you are free to shop again, sign another fixed term, or return to your utility's default rate. Put a reminder on your calendar; the post-term rate is often variable and higher, and it's the single most common way shoppers get surprised.

Cancellation and moving

Fixed-rate contracts can carry an early cancellation fee if you leave before the term ends — that fee must be disclosed before you agree. Choice markets also provide a cancellation window after enrollment. Moving house is a standard reason to end a term, and how a move is handled is written into the contract. If a move is likely within the year, ask about it on the call before you decide.

How to check a fixed rate safely

1. Hear the current fixed offers for your specific utility — rate, term and any monthly or conditions.
2. Ask for the post-term rate and any early cancellation fee.
3. Confirm enrollment only through the recorded third-party verification.
4. Check the supplier's license on your state's official comparison program before you agree.

PowerRelief quotes rates on the call rather than publishing them, because supply offers move and differ by utility and service address — a number on a web page is often already out of date.