WHAT IS INCLUDED IN A “FIXED-ALL-IN” RATE?
When you see an electric rate labeled as “Fixed-All-In“, it typically includes the following components:
- Fixed Energy Rate: The cost per kilowatt-hour (kWh) remains constant throughout the term of the contract, regardless of fluctuations in energy prices on the market.
- Delivery and Transmission Charges: These cover the cost of delivering electricity from power plants to your home via the electric grid. These charges are included in the “All-In” aspect, meaning they are bundled into the total rate you pay.
- Distribution Fees: These fees are charged by your local utility company to distribute electricity to your home. They are also usually bundled into a fixed rate.
- Taxes and Surcharges: Any state or local taxes, as well as surcharges for maintaining or improving the grid, may be included in the all-in pricing.
- Administrative Fees: Some plans include a variety of administrative fees (e.g., billing, customer service) which might be part of the “All-In” rate.
A Fixed-All-In electric contract is an electricity plan that provides a set rate per kilowatt-hour (kWh) for the duration of the contract. The all-in rate is calculated by dividing the total cost over the contract term by the total kWh used. This rate includes the following: Monthly energy fees or base charges, Monthly energy credits, Energy rate, Transmission/TDU/TDSP monthly fixed fees, and Transmission/TDU/TDSP rate.
In short, a “Fixed-All-In” rate simplifies your billing by combining all the various charges into one predictable, fixed rate per kWh, shielding you from unexpected fluctuations in the market or fees during the term of the contract.
