A Texan's Guide to Comparing Electricity Rates

A Texan's Guide to Comparing Electricity Rates

Here in Texas, we’ve got the freedom to pick our electricity provider. But with so many options out there, it can feel a bit like wrangling cats. This article will teach you how to find the plan that’s just right for your family, your wallet, and your way of living.

Know Your Usage and Compare Costs

First things first – figure out how much electricity your home typically uses. You can find this information on your past energy bills, which usually list usage in blocks like 500, 1,000, or 2,000 kWh. If you’ve got a smart meter, it can give you even more accurate data to track your usage.

Once you’ve got your numbers, start comparing plans. 

Providers will quote rates per kWh, but don’t stop there – always make sure you’re comparing total costs, including delivery fees, not just the rate per kWh. Every plan comes with an Electricity Facts Label (EFL) that breaks down the rate type, delivery fees, renewable energy percentages, and any sneaky extras.

Understand Rate Structures

Fixed Rate Plans

These plans give you a set rate for the duration of your contract, usually 12–36 months. They’re great for budgeting since you’ll know what to expect, rain or shine.

Variable Rate Plans

If you’re good at timing things, these plans let you save by using energy during off-peak hours. It’s perfect for folks who can adjust their habits, like running the washer or charging the EV at night, when rates are low.

Indexed Rate Plans

Best suited for big-time energy users, these plans tie rates to the energy market, so costs rise and fall with demand.

Whatever plan you choose – again, it’s important to give that contract a close read. Look out for hidden fees or charges that could come back to bite you.

What Affects Texas Electricity Rates?

Texas energy rates aren’t just about your provider – they’re also shaped by factors like weather, population growth, and energy sources.

Weather

Hot summers and cold snaps mean higher demand, which drives up prices. Rates tend to dip during milder seasons like spring and fall.

Population Growth

With more folks moving to Texas every day, energy demand is up, which puts extra strain on the grid.

Energy Sources

Natural gas powers most of Texas’ electricity, but wind, solar, and nuclear are growing contributors. As renewable energy capacity increases, prices could start leveling out.

Avoid Common Pitfalls

Choosing an electricity plan isn’t just about numbers – it’s also about service. Look for a provider with transparent pricing, good reviews, and excellent customer service.

Ask your neighbors about their experiences or check online reviews to see how providers treat their customers.

And note: if your credit score is under 600, watch out for plans that require a deposit. No-deposit and prepaid plans can be a solid option, letting you pay for electricity upfront without a credit check.

Energy Texas Makes It Easy

At Energy Texas, we take the guesswork out of electricity shopping. Our plans are easy to understand. Our rates are fair, transparent (no hidden fees!). And it’s all  backed by the best customer service around. Enter your zip code at energytexas.com to find a plan that best meets your needs.

FAQs 

How do I compare electricity rates in Texas?

Start by figuring out how much juice your home uses each month. Then compare rates from different REPs, making sure the price covers generation, transmission, and delivery. Watch out for fancy-sounding deals that sneak in hidden fees.

What factors should I consider when choosing an electricity plan?

Start with the three R’s: rate, reliability, and reputation. You want a good price, a company that’ll keep the lights on, and a provider that treats you right.

Are fixed or variable rates better?

Fixed rates keep your bill steady, no matter the weather. Variable rates give you more control, but you’ll need to manage your energy usage throughout each day to save money. 

Can I switch providers without a penalty?

Yes, you can switch anytime! Your power won’t skip a beat, but check your contract before switching – some plans charge a fee for breaking up early.

What are the benefits of comparing electricity rates?

The biggest perk? Saving money! Comparing rates also helps you find a plan that fits your needs, gives great customer service, and even uses renewable energy to keep your home humming.