Yesterday's column was about alternative electricity offers for BGE households that sound better than they may turn out. Basically companies are comparing themselves against BGE's high, summertime price that goes away in less than two months. On their blog, energy consultants Avalon Energy make a similar analysis of Constellation Electric's offer to Pepco households.

Based on this alone, Constellation's offer of 9.65 cents per kWh seems attractive. However, Constellation's rate is only 5.7% lower than the forward Pepco rate that runs through 5/31/11. Beyond 5/31/11, any discount or premium to Pepco’s rate cannot be determined as Pepco’s rates have not been defined and won’t be defined until sometime in the future.

Avalon, in its analysis, adds a really important footnote that you should always remember, not just for Constellation but for any of these deals:

In the "Term" paragraph, it says that the contract will automatically renew for an additional 12-month renewal term unless terminated. So, if you miss the window, or you don’t terminate the contract and pay a $150 penalty, you will be with Constellation for another 12 months at a rate they will define in the future.

Even if you sign up for a great deal, if you're not careful you can get automatically rolled over to a not-so-great deal a year later.