Saving Money Blog

Finance Blogs » Saving Money » Save on utilities with this trick

Save on utilities with this trick

By Crissinda Ponder · Bankrate.com
Sunday, November 11, 2012
Posted: 6 am ET

Pinching pennies wherever possible is a goal many strive for, especially in this cash-strapped economy. Take our recent Frugal Sense winner and "frugalista" Lynn Bulmahn for example. From thrifting to estate sale shopping, she takes advantage of every opportunity to save money. Cutting back on spending in the summer months can be difficult when we rely so heavily on air conditioning to keep things cool, however, Bulmahn says comparison shopping for electric and natural gas rates makes saving money easier.

Lynn Bulmahn

Lynn wrote in saying:

In some states, different utility providers are now allowed to compete for your business. If so, you may be able to comparison shop and find a real steal of a deal on your electric or natural gas rates. For instance, here in Texas, different retail electric providers are now providing residential electrical service so that consumers have a choice. I've changed from my old electric company to a newer one and this has significantly dropped the price I pay per kilowatt hour. It's especially noticeable in the summer -- the cost of air conditioning my house is no longer sky high! All the retail electric providers compete for people's business, and consumers who comparison shop come out ahead. The service I get is the same, it's just the price is much lower now! If this is available in your area, take advantage of competition and shop around for the best rates.

We took time out to talk to Buhlman about her other money-saving tips:

Bankrate.com: How did you come up with your tip? What made you want to look around for different utility companies?

Lynn Bulmahn: Here in Texas we have incredibly hot summers -- the temperature will get up to 100 degrees or more -- and you definitely want your air conditioning. If you don't watch out you can really be paying through the nose on the air conditioning bill, so I shop around for my utility providers and get into a contract and if I can get 8 to 10 cents per kilowatt hour as opposed to 14 or 15 cents, well, you know, you save quite a bit of money because believe me, you're going to be using the air conditioner quite a lot in the summertime.

Bankrate.com: How much money do you estimate you've saved by using this tip?

Lynn Bulmahn: Oh gosh, I'm sure it's up in the hundreds of dollars. If I can keep my air conditioning bill below $150 I'm doing fantastic in the summer and usually, it's around $112 or something like that. I've had friends who have had $200 and $300 bills for houses. Of course, everything depends on your house and if you've done the other things, too, like insulate and have a good energy-saving unit. The most energy-saving unit in the world is not going to help you if you have a higher electric bill. So, I locked in a contract for a cheaper rate and I've been very happy and I'm just keeping my fingers crossed that when my contract expires I can find another contract that has a good rate.

Bankrate.com: Do you consider yourself a "frugalista"? If so, in what other areas of everyday life do you find yourself trying to save money?

Lynn Bulmahn: Yes, I'm a frugalista. I told the lady at the consignment store the other day, "It's a good thing your shop is open, otherwise I wouldn't even know which new clothing stores to go shop at, because I've been buying consignment store clothes and thrift store clothes for so long." You can get fantastic clothes for very little money. I got an Easter dress at Goodwill and it still had tags on it. I told my friends I got it at the GW Boutique, that's what I call Goodwill. Why pay $80 or $100 or more dollars for something when I can get it for $8?

Bankrate.com: Do you have any other money-saving tips to share with our readers?

Lynn Bulmahn: I look at secondhand sources first, because you can usually get things cheaper from secondhand sources. I've gotten everything from ceiling fans to coat hangers to trash cans in secondhand places like Habitat for Humanity thrift stores and Goodwills … and The Salvation Army has good thrift stores. A lot of times people will turn in things, like maybe from estates or something or from garage sales, that they couldn't use but it's perfectly usable and perfectly good and it's a lot cheaper to get it there. You always have to check the prices because every once in a while a store will have a whole lot cheaper price just on a special or something, but a lot of times you can get things at thrift stores a lot cheaper and better than you can at regular stores.

Do you have a money-saving tip you want to share? Enter our Frugal Sense contest on Facebook!

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
4 Comments
Scott Farrell
November 12, 2012 at 7:53 pm

The problem in Texas is not the price per kilowatt but the total cost - all the add ons, i.e. TDU delivery charges plus other fees. Divided your total bill by the number of kWh used-this is the true cost. Mine last month was .1397 per kilowatt.

Rashmi
November 12, 2012 at 7:30 pm

We in Ca have to rely on PG&E and have no choice to comparison shop....PG&E is therefore minting money as there is NO other competitive company. It sucks.

steve williams
November 12, 2012 at 1:21 am

why post any comment?

you never post them.

if it isn't to suck up to the, rather lame and
equally bad "reporting" and "advice", you-bankrate.com,
will never post comments.

how lame and sorry are you.

steve williams

John B,
November 11, 2012 at 7:13 am

We are in south central PA and saved $90/month 2 yrs ago switching from PPL to WES. When that contract expired this year we signed up with Energetix (now Direct Energy) and saved and additional $50/month. In both cases we received a substantial sign on bonus i.e. $100 and then $50. Our average KW per month are about 1,650 to use for your comparisons. No problems with service,but both times first 2 months billing got mixed up i.e. PPL slow to incorporate in lower rate in bill and AES fought us over what our expected usage per month would be, trying to use higher seasonal projections than my actual past 2 year monthly usage. Both finally got corrected, but be prepared to have past bills and usage facts available showing years with high, average and low usage do to weather when you discuss transfer with their agents. Also watch for situations like PPL now matching Energetix to entice customers to stay or return but only for first 6 months vs 2 yr guaranteed contract with Energetix. Pick a good company with a good rate from your state's utility customer advocate web site,lock it in for 2 years if possible and then sit back and bank the savings. What could you do with an extra $150 more or less per month. How can this happen?? Often local providers price higher than needed since people are reluctant to switch and secondly I have found that some providers use a lot of nuclear, hydro electric and natural gas and can there for produce electricity more efficiently and are not subject to wild changes in the price of oil or coal. Sounds like a lot of work! It takes me about 4 to 6 hours to do the research and comparisons, run the numbers etc., how many of us spend twice as much time or more researching the latest cell phone, I-Pad or LED TV set ??? At best those efforts create "one-time" savings, this effort can often create a substantial and continous savings stream for 2 or more years!!!