A teaser rate is an introductory price that holds for 1 to 3 months then re-rates to a higher contract rate for the remaining term. Six required disclosures expose every teaser: introductory rate amount, introductory period length, contract rate after intro, contract term, cancellation fee, renewal terms. If any of the six is missing or buried in fine print, the offer is non-compliant and likely a teaser.
The 6 required disclosures
1. Introductory rate amount in cents per kWh. 2. Introductory period length in months. 3. Contract rate after introductory period.
4. Contract term length. 5. Cancellation fee amount in dollars. 6. End-of-term renewal terms.
Red-flag supplier names
Door-to-door sales with promised intro rates 50+ percent below utility default. Phone sales pressuring sign-up before reading contract. Email offers requiring credit card up front.
Reputable suppliers (PUC-certified, BBB A or higher) ship clean contracts via secured online portals. Walk away from anything that resists clear disclosure.
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Quick answers from the editorial desk
How long can teasers legally last?
State-by-state teaser rules?
Utility teaser?
File teaser complaint?
Further reading