You can get a signup bonus of American Airlines AAdvantage miles for signing up with utilities. Not only you will get a signup bonus, for each monthly payment you pay to the utility company you will get 2 AAdvantage miles per dollar spent.
American Airlines AAdvantage Bonus Miles for Utilities Sign up
Currently, the following Electricity Companies offers are available for getting AAdvantage sign up bonus miles.
|Energy Company||Sign up Bonus||Additinal miles||Contract Term||Availability|
|Everything Energy||5,000 miles||2 miles per $ spend||6 months||Available in Texas Only|
|Gexa Energy||20,000 miles||2 miles per $ spend||24 months||Available in Texas Only|
|NRG Home||10,000 miles||2 miles per $ spend||No Contract||Available in IL, MD, MA, NJ, OH and PA only|
Current Utility Provider Charges
Currently, I have signed up a three months contract with Infinite Energy which is due up for renewal on August 8th, and I have decided to take a look at whether there is any mileage earning opportunity available American Airlines AAdvantage program for signing up with utilities. To do that, I need to compare how much more I will be paying if I switch my service provider.
My current utility provider charges for the 3-month contract as follows 8.4c for 500kWh, 7.1c for 1,000Kwh and 10.5c for 2000 kWh.
If I want to sing up for the 6-month contract, they charge 11.5c for 500kWh, 9.0c for 1,000kWh and 8.7c for 2,000 kWh.
My current month utility charges with my current provider are around 10.3c an average per kWh. If I stay with my current service provider, I will be paying a similar amount.
I looked at how much Everything Energy Charges for signing up six months. The price difference between 500, 1000 and 2000 kWh of Infinite Energy and Everything Energy are 1.8 1.7 and 1.9 cents respectively, which are not very expensive compared to the potential mileage earning option available with Everything Energy.
Since I live in Texas and I do not want to sign up an extended contract as of now. So I have decided to sing up for Everything Energy instead of Gexa Energy which gives 15,000 sign up American Airlines AAdvantage miles but locks me in a 24 months contract.
It looks like I will be paying an average of 1.8 cents more than my current provider for any use of electricity if I sign up with Everything Energy. Since after August my utility usage will go down based on my previous 12-month usage (see below), my utility bill may not go up a lot due to an average price difference of only 1.8c. So I have decided to sign up for the Everything Energy to get the AAdvantage bonus miles.
Since I have paid around $890 from August 2015 to February 2016 for my utility bill, I will be paying a similar amount from August 2016 to February 2017 for my utility bill. Let us assume I will be paying around $1,000 for the six month period than the total miles earned will be 5,000 bonus miles plus 2,000 miles for the utility payment, plus 1,000 miles if I charge the amount to mileage earning card like Chase Sapphire or Barclay AAdvantage Card for a total of 8,000 miles.
In other words, I will be paying roughly around $110 extra to earn 8,000 miles which work out to 1.6 cents per mile.
American Airlines sells AAdvantage miles around 3 cents per mile. Even during the sale, the sale price does not drop below 1.7 cents per mile. Since I will be getting the AAdvantage miles for 1.6 miles, I thought it was worth it and decided to switch my utility provided and sign up for Everything Energy.
Also, I consider Airline Miles are worth at least 5 cents per mile usage value when used for business class travel. Based on usage value the 8000 miles are worth around $400. So in other words after spending $1,000 on utility bills, I get $400 usage value which will bring down my utility bill to $600 and a saving of $290 compared to my current service provider.
Since it is not significant, I had not considered the 890 points I had earned when calculating the savings between my current plan and Everything Energy Plan, when I paid my monthly bills with my current provider with a points-earning credit card.
I will update this blog in March 2017 and let you all know how many miles I have earned after signing up for this deal.
The 5000 bonus miles and 3 miles per spend for the first month got posted to my American Airlines AAdvantage frequent flyer account.
Read my recent blog article here to find out the final AAdvantage mileage earning for using Everything Energy for my utility.