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April 15, 2011

Reader: Constellation Electric will negotiate rates

A reader who locked in with Constellation Electric a year ago at 9.7 cents kwh is being offered a one-year renewal at 9.49 cents per kilowatt hour. He called and told them he could get a deal from Castlebridge Energy for only 8.95 cents.

He says they agreed to lower the Constellation Electric price to 8.9 cents flat. The lesson: If you have a third-party electricity provider and it comes time for a contract rollover, always shop around. And Constellation Electric, at least, seems willing to negotiate.

Here are the reader's comments. You may also empathize with his feelings on having to shop and negotiate for everything these days.

I called Constellation and told them I wanted to terminate as of the end of my current contract. Of course they asked why, and I told them I had been offered a better deal from Castlebridge, which was listed at 8.95 cents on their web site as you indicated. But Constellation passed me on to a representative in their contracts department, who offered me 8.9 cents for one year if I would stay with them. I accepted, as it seemed the logical thing to do at that moment. You know, Jay, it really is not my preference that so many goods and services are now negotiated this way, like buying a car. I have done a similar thing several times now with Comcast for my TV and internet service, as many others have. It is a pain.


Posted by Jay Hancock at 10:37 AM | | Comments (2)
Categories: BGE/electricity
        

Comments

I'm glad to see that the consumer was able to obtain a better deal; however I do not sympathize with "so many goods and services are negotiated this way", when the option is going back to a regulated rate where the consumer has no choice.

By comparison, we in the US enjoy a much more stable price system than many in other countries, where haggling is part of the daily routine for nearly every product or service.

This can be both a good thing and a bad thing, of course. It is nice to have the opportunity to get good deals by being a savvy negotiator, but it's often a pain to have to do all the legwork.

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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