What a Plan Information Document is
A Plan Information Document — sometimes called a disclosure statement, terms of service summary, or contract disclosure — is the standardized document that tells you exactly what you're agreeing to when you sign up with an electricity supplier.
State utility commissions require suppliers to provide this document before enrollment. It exists because electricity contracts can be complex, and regulators want consumers to see key terms in a consistent format rather than buried in marketing copy.
The PID isn't the full legal contract, but it contains everything that matters for your decision: the rate, how long it lasts, what happens when it ends, what you'll pay if you leave early, and how to cancel. Think of it as the nutrition label for your electricity plan.
The seven sections every PID should contain
While formats vary by state, most PIDs cover the same core information. Here's what to look for in each section.
1. Rate
This is the price per kilowatt-hour (kWh) you'll pay for the generation portion of your electricity. It should specify whether this is a fixed rate (locked for the term) or variable rate (can change monthly).
Watch for complexity here. Some plans have tiered rates (different prices at different usage levels), seasonal rates (different summer vs. winter pricing), or introductory rates that increase after a set period. The PID should spell out the complete rate structure.
2. Term length
How long does the contract last? Common terms are month-to-month, 6 months, 12 months, or 24 months. This section tells you when your rate lock expires and when you'll need to make another decision.
3. Early termination fee (ETF)
If you leave the contract before it ends, what do you owe? Fixed-rate contracts often have ETFs ranging from $50 to $200 or more. Month-to-month and variable-rate plans typically have no ETF. This section should state the exact amount or specify “no early termination fee.”
Understanding the ETF helps you evaluate flexibility. A slightly higher rate with no ETF might be better than a lower rate with a $150 penalty, especially if you might move or want to switch when better offers appear.
4. Renewal terms
What happens when your contract ends? This is where many consumers get surprised. Some plans auto-renew at the same rate. Others convert to a variable rate that may be significantly higher. Some require you to actively choose a new plan or you revert to your utility's default service.
The PID should describe the renewal process. Look for language about “automatic renewal,” “month-to-month continuation,” or “return to default service.” Set a calendar reminder a few weeks before your term ends so you can make an active choice.
5. Deposit or credit requirements
Some suppliers require deposits for customers with poor credit history. Others run soft credit checks but don't require deposits. This section discloses any financial requirements beyond the electricity charges themselves.
6. Billing and payment
Who sends your bill? In some states, you receive a single bill from your utility that includes both delivery and generation charges. In others, you may receive separate bills. This section also covers payment methods, due dates, and late fees.
Watch for hidden fees here: monthly service charges, paper billing fees, payment processing fees. These add to your effective rate even if they're not included in the per-kWh price.
7. Cancellation rights
How do you cancel if you want to switch or return to your utility? Most states give you a rescission period (often 3-7 days) after signing up during which you can cancel without penalty. The PID should explain this process.
➤Compare supplier plans in your areaHow to spot teaser rates
A teaser rate is an introductory price that looks attractive but increases after a short period — often 1-3 months. The supplier leads with the low rate in marketing, hoping you won't notice the eventual increase.
The PID will reveal teaser rates if you know where to look:
- Multiple rate tiers by time.If the rate section shows different prices for “months 1-3” vs. “months 4-12,” you're looking at an introductory structure.
- Language about “promotional period.”Terms like “introductory rate,” “promotional pricing,” or “initial rate” signal that the price will change.
- Asterisks and footnotes. If the headline rate has an asterisk, follow it. The fine print often reveals the post-promotional price.
Teaser rates aren't inherently bad — you might benefit from three months of low rates even if the price rises afterward. But you should know what you're signing up for. Calculate your total cost over the full contract term, not just the promotional period.
Red flag language to watch for
Some contract terms should make you pause. Not all of these are deal-breakers, but they warrant extra scrutiny.
Tiered pricing
Plans with multiple rate tiers (e.g., 8¢ for the first 500 kWh, 12¢ for everything above) can be hard to compare. Calculate your actual cost based on your typical monthly usage.
Demand charges
Rare for residential customers, but some plans include charges based on your peak usage during a billing period. If you see “demand charge,” understand how it's calculated before signing.
Monthly fees
A $10 monthly fee on top of a per-kWh rate changes the math. On 1,000 kWh of monthly usage, a $10 fee is equivalent to adding 1¢/kWh to your rate.
Automatic renewal at variable rate
A fixed-rate plan that auto-renews as a variable-rate plan can surprise you with a much higher rate when your term ends. This is common and not always problematic, but you need to set that calendar reminder.
Vague language
If you can't understand how your rate is determined, that's a red flag. Legitimate suppliers explain their pricing clearly. Phrases like “rate determined by market conditions” without specifics should prompt questions.
What questions to ask before signing
After reading the PID, you should be able to answer these questions:
- What is my exact rate per kWh? If the answer is complicated, make sure you understand all the components.
- Is this rate fixed or can it change?Know what kind of plan you're on.
- How long does this rate last? Understand your contract term.
- What happens when the term ends?Don't be surprised by auto-renewal terms.
- What do I pay if I leave early? Know the ETF before you need to pay it.
- Are there any fees beyond the per-kWh rate? Monthly charges, billing fees, etc.
- How do I cancel if I want to switch? Know the process before you need it.
If the PID doesn't answer these questions clearly, ask the supplier directly before enrolling. Their response — or unwillingness to respond — tells you something about how they'll treat you as a customer.
Pennsylvania-specific notes
In Pennsylvania, PA Power Switch shows standardized plan information for all licensed suppliers. Each plan listing includes a link to the supplier's disclosure document.
Pennsylvania's disclosure requirements are regulated by the PA Public Utility Commission. Suppliers must provide clear pricing, term information, and cancellation policies. If a supplier won't show you these terms before enrollment, they're not following state regulations.
For more on navigating PA Power Switch, see our PA Power Switch guide.
➤See licensed PA suppliersFrequently asked questions
What's the difference between a PID and a contract?
The PID is a standardized summary of the contract's key terms. The full contract may be longer and include additional legal language. In practice, the PID contains everything you need to make an informed decision — rate, term, fees, and renewal terms. If there's a conflict between marketing materials and the PID, the PID governs.
Where do I find the PID for a specific plan?
Suppliers must provide the PID before enrollment. On comparison sites like PA Power Switch, the PID is typically linked next to each plan listing. On supplier websites, look for links labeled “Plan Details,” “Terms and Conditions,” or “Disclosure” near the enrollment button. If you can't find it, ask the supplier directly — they're required to provide it.
Can the supplier change the terms after I sign?
For fixed-rate plans, the rate you sign up for is locked for the contract term. The supplier cannot change it mid-contract. For variable-rate plans, the rate can change monthly based on market conditions — that's the nature of variable pricing. Check the PID for renewal terms, which describe what happens when your initial term ends.
What if the PID conflicts with the marketing?
The PID governs. Marketing materials may highlight attractive features while downplaying less favorable terms. The PID is the legal disclosure document. If an advertisement says “8 cents per kWh” but the PID shows that rate only applies for three months before jumping to 12 cents, the PID is what you're actually agreeing to.
Is there a standard PID format across all states?
Each state's public utility commission sets its own disclosure requirements, so formats vary. However, most deregulated states require similar core information: rate, term length, early termination fee, renewal terms, and cancellation rights. Pennsylvania's PA Power Switch provides standardized plan listings. Texas REPs use an “Electricity Facts Label.” The specific format differs, but the required disclosures are similar.
