Is switching electricity suppliers worth it? Here's the actual math.

The worth-it line for every utility we track

Sorted by headroom — the utilities at the top of each table are where offers most often clear the line; the ones at the bottom are where they rarely do. Rates are each utility's verified default supply rate (dated on its page); the line assumes $10/mo savings at 750 kWh.

Methodology note: cross-STATE comparisons of raw rates reflect different wholesale zones (an 18¢ NJ default doesn't mean 8¢ of headroom — NJ offers are priced off the same costlier zone). The worth-it line is meaningful within each utility's own market: it's the number a real offer in YOUR territory must beat.

The two fee traps, converted to ¢/kWh

Supplier offers advertise a rate; the contract adds fees. Convert every fee into ¢/kWh and the "deal" often disappears:

The clean test survives all of it: fixed rate, full term, zero monthly fee, zero cancellation fee, below your worth-it line. Anything else, keep the default — it's the rate with a guaranteed exit.

Common questions

Is switching electricity suppliers worth it?

It depends on one number: your utility's default supply rate. A switch is worth doing only when a FIXED-rate offer (no monthly fee, no cancellation fee) beats your utility's default by enough to matter — we use $10/month at 750 kWh as the bar, which means the offer must be about 1.33¢/kWh below the default. In high-default territories (Duquesne Light in Pittsburgh, Met-Ed in eastern PA) offers regularly clear that bar. In low-default territories (Duke Energy Ohio, AES Ohio) almost none do — shopping there rarely pays, and that's arithmetic, not opinion.

What is the 'worth-it line' and how is it calculated?

The worth-it line is the rate a supplier offer must beat for switching to save a meaningful amount: worth-it line = your utility's default rate − (monthly savings threshold × 100 ÷ your monthly kWh). At $10/month and 750 kWh, that's the default minus 1.33¢. Example: PECO's Price to Compare is 11.759¢/kWh, so the worth-it line is about 10.43¢ — an offer at 11.5¢ 'beats PECO' but saves under $2/month, which isn't worth contract risk. Pick your own threshold and usage; the formula is the point.

Why do low advertised rates still end up costing more?

Three mechanisms, all arithmetic: (1) Monthly fees — a "$4.99/month service fee" equals +0.67¢/kWh at 750 kWh, which usually erases the advertised advantage. (2) Cancellation fees — a $100 early-termination fee spread over a 12-month term is $8.33/month, more than most realistic savings. (3) Variable rates — a teaser that floats after 3 months can end up far above the default; supply portions doubling after teasers expire is well documented in state complaint records. The clean test: fixed rate, full term, zero fees, below the worth-it line.

Where does switching electricity suppliers pay off the most?

The territories with the highest default supply rates, because more offers can undercut them: Duquesne Light (Pittsburgh, 14.14¢ Price to Compare) and Met-Ed (Reading/York, 13.954¢) currently have the most headroom of the utilities we track (verified July 2026). The least: Duke Energy Ohio (10.69¢) and AES Ohio (10.86¢), where the default is already near the competitive floor. Rates reset on each utility's schedule — the tables on this page rebuild from our verified rate data.

Why does my utility's default rate matter more than the supplier's advertised rate?

Because the default rate is the price you get for doing nothing — with no contract, no cancellation fee, and the automatic right to return to it. Every supplier offer must be measured against it, net of all fees, for the full term. Suppliers in the same zone buy power in roughly the same wholesale market your utility procures from, which is why the spread between offers and defaults is usually thin — and why territories where the default is unusually high are the only places the spread gets wide.

Is it worth switching for less than $10 a month?

That's a personal call — our $10/month bar reflects the real costs of switching: reading a contract, tracking a term end-date, and the risk a variable rollover or fee turns savings negative. Some people happily switch for $5/month; the formula on this page works with any threshold (at $5/month and 750 kWh, the offer needs to be 0.67¢ below your default). What we'd argue against is switching for under $3–4/month — at that spread, one billing quirk erases a year of savings.