Variable rate plans are always month-to-month, save for three-month intro specials in which your rate stays the same for those early months. Fixed rate plans, on the other hand, are available for periods ranging from six to 36 months. The contract lengths, and how that length influences the price per kWh rate, varies enormously from company to company. Some companies offer lower rates when you enroll for longer periods. Others raise the rate slightly. The competing rationale: You will be paying them for longer so you get a break, or you have that price locked in when energy rates inevitably rise. One rule of thumb — the longer the contract, the higher the cancellation fee.
The electric power industry covers the generation, transmission, distribution and sale of electric power to the general public and industry. The commercial distribution of electric power started in 1882 when electricity was produced for electric lighting. In the 1880s and 1890s, growing economic and safety concerns lead to the regulation of the industry. Once an expensive novelty limited to the most densely populated areas, reliable and economical electric power has become an essential aspect for normal operation of all elements of developed economies.