WKYT | Lexington, Kentucky | News, Weather, Sports

Power companies dangle free nights and weekends

NEW YORK (AP) - The advent of digital meters which allow real-time monitoring has begun to prompt some electric companies to take a page out of the mobile phone marketing book.

In a shake-up of rigid old one rate business models, electric companies have begun increasingly offering free nights, free weekends and pre-paid plans.

Forty-two percent of U.S. electric customers have digital meters, up from less than 5 percent in 2008. The percentage is rising.

Digital meters have enabled traditional utilities to reduce their costs by encouraging customers to use electricity during off-peak hours, when it is cheaper.

But there is a potential downside for customers. Some plans offer low introductory rates that can quickly skyrocket. Others have high early-termination fees. Some fixed-rate plans are a great deal if power prices rise, but not if they fall.

If customers are careful, though, they can pay less.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus

WKYT

2851 Winchester Rd. Lexington, Ky 40509 859-299-0411 - switchboard 859-299-2727 - newsroom
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 220033931